Maui vacation rental- Post COVID

[Dominic Lattanzi]

Does anyone have experience with short vacation term rentals in MAUI? My wife and I  are looking at a property on the Lahaina side of Maui. The numbers seem to work out (not huge cashflow), however, we are a little  concerned about the impact that COVID is having on vacation rentals. We would be hedging on more cashflow post pandemic if we decided to pull the trigger.  

Thanks in advance. 

P.S. this is my very first Post!  

[Keith Simmons]

I've also been scouring the Maui market for the last week or so looking for the same.  I love vacationing in Hawaii, and with young kids, have spent the last few years in Maui.   I'm intrigued by the idea of having an investment asset that has value beyond simply generating a return.  

But despite Redfin listing the market as slow, Mike's analysis rings true: it feels like things are really heating up. Further complicating things, I don't want to travel until I'm vaccinated, so I doubt I can physically visit any properties until June/July. I have yet to find anything that will generate positive cash flow based on actual 2019 rental income once you subtract out mortgage, HOA, and property management (25%). There are a few that are self managed, and the agent claims could make a lot more if they were professionally managed. They sent me comps that look more promising, but I can't figure out how optimistic they are.

Here are a few questions I've been struggling with:

1) How important is it to be right on the beach vs across the street? Obviously it'll impact the rental price, but if you can get a condo that has a 30% lower price and HOA that's directly across the street from a beach, is that a worthwhile trade off?

2) Beach erosion - How big a looming threat is this?  I have relatives with property in the outer banks, and this is threatening the existence of entire communities.  I don't think Hawaii has as big a storm problem, but I recently found a condo that has a $580/month in Maui have big extra assessments for the construction of anti-erosion measures like storm walls.

@Mike Neubauer I want to be respectful of your time, but if you're willing, I'd love to share a few properties I have my eye on and get your quick impressions.  DM me if you're up for it.