Hawaii Leasehold Condo for AirBnB

[Jin Lim]

Hello all,

Hoping to get some input from investors out in Honolulu County about leaseholds and using them as a vacation rental.

I found a few leasehold condos in the Honolulu/Waikiki area in buildings within a BMX/resort zone and was thinking about using them to rent out on AirBnB. I understand that I won't be building any equity by purchasing a leasehold, and I do need to get additional permits and pay additional taxes if I want to do this legally.

The reason why I would want to do this is because it's cheap to acquire a leasehold condo and the monthly revenues from rent could easily take care of the mortgage, lease rent, fees, and taxes.

What things am I not looking at? Why is this a bad idea?