Hawaii or South America? Something else?

[Nathan Gesner]

I'm looking for recommendations for a future STR. Would prefer responses from people with actual, personal experience.

Requirements:

1. Single-family residence, not a condo or timeshare

2. On the beach

3. Cash flows.

I'm only interested in something that can pay for itself and make enough cash flow to pay for me to visit a couple times a year. Where have you found success? Maui? Florida? Oregon?

Thanks in advance.

[Mike Neubauer]

@Nathan G. There’s a few things to think about for Hawaii. One, it would have to be a long term play. I say that because it is now required that you own your property for at least five years before you can even apply for the str permit. After that, there’s a lot of other requirements to get the str permit as well, not more than 30% of your neighbors can oppose, there has to be enough permits allotted for that area, it has to be in an area that is zoned for it, etc. and like @Jay Hinrichs said, it’ll cost you a premium. I live and invest in STRs on Maui and if you want to be on a nice beach you’re looking at $20m+ for a decent house, but that will likely need rehabbing at that price.

The nightly rates those houses command are good, but unless you buy in cash or close to it, they most likely won’t cash flow. Christmas through Mid April is our high season when rates will be best. Ocean view houses, if you can wait the five years and invest right is a much more lucrative play.

Good luck. 👍🏽