Where is the place in Honolulu that's good for an investment property with studio/1BR using fee simple? I see Makaha tower is nice, what's the vacancy rate in there?
I don't know what Makaha Towers vacancy rate is; however, Makaha is very far away from core Honolulu itself and I'm not sure a studio/1BR unit will cashflow well in that particular project. I can only assume that you don't very much the difference btwn Makaha and Honolulu, but they are vastly different from one another. If I remember correctly, the maintenance fees are quite high in that project and rents can barely cover the basic expenses, so maybe might not be good.
Hawaii is pretty expensive in general and good CF is quite difficult to come by. Aloha Carlos!
@Carlos Ptriawan I think it depends on your goals and how much you have to invest. Oahu has a high barrier to entry compared to most markets, and the predominant strategy here is appreciation, both market and forced. If you're looking for cashflow, legal short term rental in Waikiki might be the way to go.
thanks, this would be half investment and half semi-retirement place. I don't like Waikiki that much...I'm considering anywhere in HI or FL for the same purpose,or both.
Makaha, as already mentioned, is as far away from Honolulu as one gets on Oahu and the rental market is not very strong out there due to poor city planning means few jobs for young professionals and the inadequate roadway limits its appeal to commuters who want to work in the rapidly expanding town/city of Kapolei. If you're looking for a part time rental that you could also use for personal stays I would suggest looking towards Ewa Beach, perhaps Iroquois Point, which is reasonably priced and close enough to hospitals in Kapolei to allow for short term rentals to traveling medical professionals.
Another reason for purchasing near Ewa/Kapolei will be the rail project, that once completed should increase the attractiveness of the area to commuters who are currently turned off by H-1 traffic.
I am a realtor who lives and sells in Makaha. Everything the other posters have said is true. However, their suggestions depend on the amount you have to invest and why. Ewa beach and Waikiki you will spend hundreds of thousands of dollars more for a studio or 1 bedroom than in Makaha. If you can afford it, then definitely follow their advice. If you are realistically looking in the under $200k market (and you don't want to retire to the Big Island), then you may have few choices besides Makaha. Investment-wise you may not see much appreciation in the value of the property if you are already close to retirement age. Here are my impressions of Makaha Valley Towers: the maintenance fees are high, but they cover all the utilities, and are much lower than compared to Waikiki condos that also include all utilities. Retirees like this option because they can predict their expenses. But its true, rentals here will only just cover your expenses, you won't make much profit if any . The building adheres strictly to Oahu vacation rental rules...you can only rent per 30 day rentals. If you are a long way off from retirement, you may do better with Makaha Valley Plantation, which has 2 bedroom units for a similar price. There are lower maintenance fees for you, with the tenant paying some of their own utilities, and the size of the units opens you up to a larger rental pool. When you are closer to retirement, you can always sell the plantations unit and buy in the Towers using a 1031 exchange a few years before you move. Or...If you can wait for the next market downturn, Makaha Beach Cabanas is a great value for a direct beachfront 1 BR condo on Oahu.
@Carlos Ptriawan Aloha Carlos! How's it going with your rental search?