After a lot of reading and two failed offers I am starting over. I had previously only been looking at the big island and casually looking on Oahu, where I live. Since I am going back to step one I've decided to look at the other islands again. Maui and the big island are the two that I am interested in from the price stand point. That being said I've already been working with a realtor on big island so I am in need of a realtor on Maui. Since I have no contacts on Maui i am asking around here.
Currently looking for a single family home or condo ideally for long term rental. Budget is 300k or less, ideally less than 150k (condo). Because I live on Oahu and have a full time job, I will be using a property manager. Being a newbie I am open to other options, but I won't be house hacking. Brrrr sounds nice and great, but i don't think I have enough cash saved to do an actual remodel.
Maholo for any help!
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Aloha @Phillip Williams ,
For BRRRR, if you use a private money lender, remodeling costs are included as part of the loan. It's a lot simpler than most people think plus qualifying is actually based on the deal more than your personal finances. The process is a lot easier than qualifying for a conventional loan from a bank. DM me if you want more info or would like to talk.
FYI I've worked with @Mark Waite before. He's a great agent and can give you some valuable insight into the market here on Maui.
I am interested in buying a condo or SFH which is fee simple / short term rentable in Maui. Can you provide me with some suggestions. Will be coming to Maui next week. This will be our first investment property. So not sure if investing in a home away from home is right or not. Please advise.
@Vani Narasimha You canÊ»t buy a SFH that is vacation rentable in Maui, at least not right away. In September a law went into effect saying that before you can apply for a STR application on a single family residence you must own the property for 5 years.
Buying a STR condo is possible, of course, but in order for it to make sense for an out of state investor you would need to put down at least 50% in order for the numbers to work in your favor.
You will need to have a property manager which will take 25-50% of your gross income. I have a few properties in Maui that I self manage because I live here, but from out of state it would be very, very difficult.
Iʻm happy to talk to you more and give you any advice you need about the market out here, and connect you with a couple realtors if you are interested. Just let me know!
@Vani Narasimhan , you cannot legally rent out SFH properties as short term rentals. The county passed a law this summer that tightens up the waiting time required before applying for a permit. And, they've also increased the fine to $20k for the first offense so not worth the risk.
Condos are much easier to rent out short term as you only need to know if they are permissable in the complex. No permit necessary. Just need to get the appropriate general excise and transient accommodation tax licenses with the state. Easy to do, especially if you hire a property manager.
You can do well but need to carefully analyze the properties because some, on the face, appear to have really good cash flow potential. But when you drill into the numbers, you realize its not so good. Plus, having a place on Maui gives you a free place to stay on vacation and, if you hold it, over time you will get price appreciation. Year round tourism will help keep the occupancy high, provided you buy in the right location. Just as in buying a house, location is critical for a vacation rental property if you want to have high occupancy rates.
Happy to meet up and discuss further. This is a market where you definitely need to be careful due to the lower than normal inventory.
BP seems to be having problems today! Duplicate posting.
Thank you @Mike Neubauer , @@Mark Waite I was aware of the rules and that's why wanted to go for a fee simple condo, if possible. Was looking at Kahana Manor and Papakea resorts only. I wanted the property to be around 300k. Please let me know if these make sense for an east coaster to invest and the numbers wont cause a negative impact. I was planning to put only 20-25% down and wanted the rental income to take over. @Mark Waite, will be happy to meet with you, if you think this is not a risky proposal for a newbie.
Stay away from Kahana Manor. Major beach erosion issues that are yet to be resolved. Papakea isn't bad but, at $300k, you are buying a leasehold property. At $300k, options are limited but let's talk.
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