Need Advice on property in Hawaii

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Need Advice on property in Hawaii

Kyle Tamraz
Member since 2024 · 2 posts · 2 votes

Hello! I am in a situation that I would love some guidance, feedback, and your thoughts. 

  Quick info Location: Waikiki, HI Size: 2 Bed 2 Bath 820 sqft  HOA: $1,200 Special Assessment: $1000 per month for next 8 years ($122,000 total) (started in October 2025)  Loan type: 15yr fixed loan at 3% Remaining Balance: $250,000 Original Balance: $430,000 Home Value: $500,000   I purchased a 2 bed 2 bath condo in 2020 with a 3% interest rate in Waikiki back in 2020 with the intentions of renting it out as a STR/LTR. Currently, I live in it and pay $4,300 for it a month... including mortgage, HOA and special assessment. I just go done paying a special assessment in June 2025 that I paid for 18 months that was another $600 a month. My property has absolutely no amenities, other than 1 outside, unsecured parking stall. My goal was to hold onto the property and pay it off asap, but with this special assessment I feel like I am losing on a lot of money. I also know I would take a big cut selling it with the special assessment fee. What would you do? All feedback is appreciated!   If there's any information that is needed please let me know! 

Mahalo!

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  • Jason WrayPro Member
    Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
    10mo

    Kyle,

    The term "Special Assessment" is really another way to say bad HOA management or improper reserve balance planning. Sounds like you should consider selling unless your HOA allows STR short term rental, most places require 6 month minimum style restrictions.

    You can always take out a line of credit or HELOC and buy a new primary home. Your first rate is super low but not low enough to stay trapped in a steady HOA or fee increasing environment.

    I just closed on a Condo in Hawaii for a friend that had no issues so they are available should you decide to jump ship. If you have any questions feel free to reach out be curious to see if your Condo/HOA is headed into a Non-Warrantable classification, if so that is bad news!

    [email protected]727-637-4289
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  • Joseph LambertBusiness Member
    Realtor · Waikoloa, HI · Member since 2023 · 21 posts · 14 votes
    10mo

    Aloha Kyle!

    What is the Special Assessment for?  I don't always think that a Special Assessment means the condo is managed poorly- so many condos got hit with crazy insurance increases as you know, that led to Special Assessments for many complexes.  I'd be curious what you are paying for over the next 8 years that caused the Assessment?  Would the assessment be required to be paid off at closing?  Or would it be passed on to the Buyer to continue the payments?  And then also, what do you anticipate it will rent for if you kept it?  If you can manage for the next 8 years and still be profitable, after that assessment is paid off your cash flow would get a nice bump.  Curious to hear more info!

    -Joe

    [email protected]808-782-4386
    Joseph C. Lambert Hawaii Real Estate Agent59 Reviews
    WebsiteView Page
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  • Loren Clive
    Residential Real Estate Broker · Paia, HI · Member since 2016 · 479 posts · 311 votes
    10mo

    Why aren't you currently renting it out short-term as planned? Seems like you could cash flow with a 2br income in Waikiki.

    Could you rent elsewhere for less?

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  • Duc Ong
    Real Estate Agent · Honolulu, HI · Member since 2015 · 450 posts · 196 votes
    10mo

    @Kyle Tamraz

    You are definitely not alone. A lot of Waikiki owners are wrestling with this right now.

    A few quick thoughts that might help simplify the decision:

    • The assessment itself is not automatically bad. What matters is what it is fixing. Structural or insurance related work often hurts value short term but stabilizes things long term. Operational or cash shortfalls tend to keep dragging values down.

    • A 3% rate is great, but only if the asset still makes sense. Right now you are paying a premium every month to keep equity stuck in a condo that is not performing.

    • Try a simple gut check. Would you want to own this exact unit in 8 years once the assessment is done? Same building, same parking, same rules. If not, holding just to avoid a loss usually does not feel better over time.

    • Selling with an assessment does not always mean writing a huge check. In many Waikiki deals the assessment transfers to the buyer and just gets priced in. Smaller buyer pool, but still activity.

    • Since you are living there, also look at lifestyle math. Renting nearby can sometimes be cheaper than owning in Waikiki right now.

    If you want, I’m happy to look at your building, the assessment details, and recent sales to help you pressure test whether holding or selling makes more sense. Let me know.

    let me know 

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