Anyone own vacation rentals in Hawaii?

[Carter Thomas]

Hello,

Does anyone own a short term vacation rental in Hawaii?

I've noticed some small 2bd condos on Maui for around 150k with PITI and HOA coming to $1,000/mo. These same condos rent out for $150/night in peak season and $90-100/night in the off season. It's hard to imagine that with 20-40% downpayment that these condos wouldn't pay for themselves or atleast cash flow 10%?

Everything I read says short term vacation rentals aren't worth it.

Can someone provide any expertise or insight?

Thanks!

[Mark Waite]

Look closely as those condos are likely leasehold properties. That adds at least an additional $800/month to your expenses. In most cases, that kills the deal.