Soliciting advice for investing in Honolulu
Hello,
Reaching out to get some advice from investors with experience investing in Honolulu.
I will likely be moving next year for work in the Honolulu area and I'm thinking of purchasing a condo/apartment, as I'm priced out of the single family housing market there at the moment, even with the VA loan which I've already used twice. My plan is use the VA loan with the intent to live there as my primary residence (VA rules), then when I get ordered to another location, I turn that unit into a STR or LTR after a while before selling/1031ing. My spouse would manage the STR remotely after we move so we could use the 100-hr tax loophole until we decide to sell.
I understand the Honolulu area has some strict zoning laws where STRs are allowed, not to mention having to abide by the HOA's rules. Does anyone have experience running rentals in the Honolulu area that they'd like to share? One thing I'm not sure about is how competitive the STR market is there with all the resorts and hotels.
Semper Fi. 🦅🌎⚓
Most Popular Reply
#1 Tenant Screening Contributor
- Honolulu, HI
Aloha,
I am retired now, but managed primarily LTR here for the past 20+ years. Unless you take the time to fully understand how condos and HOA's are operated, in particular, details regarding annual budgets, and critically- reserve funding plans. All in addition to learning where to look within the Governing Docs for each specific project to confirm your responsibilities and your limitations. I managed a number of COA/HOA projects over 10 years here and am very familiar. I'm happy to review actual docs with you when the time comes.
STR's are limited to resort and hotel zoned areas, although the county by county rules are definitely still in flux. We have so many #1 elements to life here in Hawaii...highest electric rates in the country, highest water rates, highest cost of living, and now: Hawaii is one of the most regulated short‑term rental (STR) markets in the United States. We are all just so proud...but, hey, the weather is great!