Volcano? Kailua-Kona Vacation Rental+Full time rental & A VOLCANO

6 Replies

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.  

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.

Hi, Glen,

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.