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Updated over 1 year ago on . Most recent reply
STR in Maui on a leasehold ?
Hi I am thinking of getting into the STR business . Have been reading Avery Carl's book recommended here . Saw a 2bd 2 bathroom condo in Maui , priced at 779K ocean front good views , however it is a leasehold which expires in 30 years it is an active STR currently Apparently the current owner only made 45K last year ! Wondering if leaseholds are good option? I don't think the cash flow would be high? Honestly looking for recommendations? Like what numbers should I be looking at that would make this a good deal ?
Thank you
Most Popular Reply
@Michael Baum the lessor is not the govt it is an investor. The lease is expire in 2066. The lease fee increase every 10 years . Apparently they can’t pull the lease before the term is up. But I am just curious how much revenue I need on such a place to make it a profitable one? So need to gross ~100k from daily rates and occupancy and minus the expenses and Mortgage ?