All Forum Posts by: Patrick Franta

What's up @Mike Neubauer!  Welcome to the group!

Aloha @Grin Alan!

Welcome to the group!  As others have mentioned cashflow can be a hard thing to find, especially in todays market.  However, we do not have the same influence form foreign investors that Oahu does so there are opportunities to be found, it just takes some effort and time to find them.  The entry level condos in Kihei still cashflow.  U can purchase a 2 bed/1.5 bath at $280,000 and rent it out for $2,250.  

Other than those you would have to look for a multi-unit.  The only issue there is you need a significant amount of capital to get going.  those start in the mid 500's and that is for a fixer upper.  

If you have any other questions I am more than happy to be resource.  I am an agent and investor that is very active in the market.  Mahalo.  

Ella,

I would be more than happy to give you an overview of the market and show you a few properties. 

In our current market cycle there are fewer "deals" than one may have seen in the past, but they are still out there. I still have investor clients buying in this market. Feel free to pm me and we can coordinate a time to get together when you are out here. Mahalo. 

Aloha Kaylea,

You present a lot of great questions in your post. Rather than focusing on nightly rates I would recommend focusing on a potential ROI. The first thing to determine the price point in which you are qualified for. From there, with the help of a real estate professional, you can determine the better performing complexes in your price range. Some of the variables are HOA fees, Utility costs & obviously desirability. I have a spreadsheet that I offer my clients to help analyze potential returns that I would be more than happy to share with you. Then you can identify some of the better deals available in these complexes that fit your criteria.

In short it is absolutely possible to break even or even make a return if you buy right and manage properly.  Here are some key factors to focus on:

25% will be the minimum down payment required for most of these complexes

Occupancy rates of 75-80% or higher are very achievable with effective management 

There are plenty of great managers in the market that will charge 20-25%, my wife's company being one of them.  There are even options to book the condo yourself and pay a manager 10-15% to handle everything else.  Deciding on which management style and fee works for you will be a big factor in your return

Depeding on the price point are you set on a 2 Bed w/o ocean view?  Most view units out perform non-view units and a lot of 1 Beds out perform 2 Beds.

This is just an overview but I hope this helps a little.  If you would like me to send over that spreadsheet or any additional info just pm me.  Mahalo.

Yes I would agree that a weekday afternoon/evening would be best.  Good Job Christian on getting this going.

Cory,

You are on the right track with many of your assumptions.  Turnover will be slightly higher in the $100-150 range for a cleaning.  I have several clients that own and manage vacation rentals here in Maui from afar, so it is definitely doable.  If you hire a full service management company they will charge a minimum of 25% of your gross rental income.  My wife runs a vacation rental management company here in Wailea and she would be more than happy answer any questions you have.

Basically it comes down to how hands on you would like to be.  If you are willing to put in the time and effort to maximize your returns, self management is very doable.  If you are looking for a hands off solution you can still make decent returns in the 3-5% range and you won't have to deal with much at all.  

The key is to make sure you buy right and run the numbers thoroughly when looking at each option.  I have a pro forma I send to my clients to analyze deals.  Let me know if you would like to use it and I can send it over.  Mahalo. 

Aloha @Svetlana K.!  Welcome to Maui.  We have no organized clubs here but I would happy to meet up and talk some strategy when you are on island.  Let me know!

Jake,

Ideally you could plan on using the potential returns from your vacation condo over the next 5 years coupled with the equity you will hopefully build to purchase a second property where your bus partner and family could live.  You would come up with an agreement on how to split returns from there forward.

Partnering with someone that is potentially planning on living in the investment property could get a little tricky, unless they buy you out at that point.  Just some thoughts...  

Welcome to Maui & welcome back to the forum! We have a few members here on island but there are no formal meetup groups as of now.  I would be open to starting one up with you as I think there is a need for that here on Island.  Let me know! 

Welcome to BP Jim!  I am an Agent & Investor that works in South Maui.  I would be more than happy to discuss the ins and outs of the market with you anytime.  

This platform is probably the best investing resource you will find out there.  If you have any questions feel free to ask anytime!