My wife and I are under contract to buy an ocean view home with a 65% occupancy 4/2 Airbnb rental with a full time 2/1 rental below. It is on a steep hill and right on the 2lane Kuakini Hwy....but it performs well.
Then a Volcano happens with the subsequent media hype. Cancellation requests, tourism impact, etc.
We need a 45%-50% occupancy to break even...
Do I pull out out? How long can this last and how long to recover?
Aloha @Nate Morris , are you able to pull out? If yes, I would exit the deal. Although your property is currently not on the "High Risk" side of the Big Island, you are still going to take a big hit occupancy wise. Its going to be a long while before things recover.
I agree pull out if you can Hope you’re out by now aloha
How's the market in Kona now? Is it a good time to get in due to the Volcano scare? I've noticed that the houses I've looked at have been on the market for awhile now, some with price cuts.
I have a VR on the windward side, in Hilo. We've slowed down, but now I'm starting to see more activity. The cruise ships didn't come at all for some weeks. Then, one, then two a week, so now we have 3 a week sometimes. It's coming around.
You know that Hawaii County is planning on passing an ordinance regulating VR properties. The latest is you'll have to register, and maybe pay $500-$2000 a year to keep it registered. If you sell the property the registration doesn't go with. This is only for properties not in a resort area, maybe yours doesn't apply. Good to check into, though.
Thanks for the heads up! We will check into it.
7 bookings since July and getting higher full time rent on the Ohana....also turningthe solar panels on (Ha!) for an energy reduction...