Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Short-Term & Vacation Rental Discussions
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

4
Posts
0
Votes
Garrett Steinke
  • Kailua Kona, HI
0
Votes |
4
Posts

Good deal? Buying a condo for vacation rentals

Garrett Steinke
  • Kailua Kona, HI
Posted

I'm thinking of buying a Condo in a fairly popular tourist destination a couple blocks off the beach in Hawaii. Ide be Investing about 40k for down payment, closing and rehab. It could cash flow roughly $1350mo, thats a cash on cash return of 40% for about 2/3 of the year. The other 1/3 ROI would be around 20%. . If I long term rented it, the numbers would not work out and I would be lucky to break even. There are a couple risks that make me weary and would love to hear if anyone had some stances on the subject that could help me validate/eliminate my concerns. Mahalo!

1.) I'll be buying at historical high prices for the condos history and I feel the markets in a bubble and I won't be counting on appreciation, more likely to depreciate in the near future if the bubble bursts.

2.) What if one day the home owners association decided to not allow short term renting or possibly the state of HI passes laws banning short term renting (it's very controversial over here) and over night I go from a great cash flow rental to a rental thats in the red and possibly underwater if the bubble did pop.

Most Popular Reply

User Stats

214
Posts
95
Votes
Jason Goretzki
  • Daytona Beach, FL
95
Votes |
214
Posts
Jason Goretzki
  • Daytona Beach, FL
Replied

For investment property, I would avoid HOA's at all costs, as you are never in complete control. I would never put someone that in not involved, nor has nothing to gain or lose in-between me & my cash flow.

Loading replies...