Hawaii STRs - Waikiki?

[Arwin Nassiri]

Hi everyone, I’ve been studying STRs in Hawaii (Waikiki specific) lately and am curious to see why so many advise against this?

I do understand that HOA is high and there are many restrictions on Short Term Rentals but from my conversations there seems to be many buildings in Waikiki that do allow for STRs that have great cash flow potential.

I used to live on Oahu and from my discussions with those on the island a 300+ sq foot condominium in Waikiki ranging anywhere from $180,000 - $300,000 can yield anywhere from $2,500 - $4,000 a month. Those seem like great returns even with the HOA surcharge. Would love to gain some more insight from those with experience

Note: I am aware of the difference between fee simple and leasehold. The figures above are specifically for fee simple

[John Underwood]

2500 to 4000 is gross monthly income? That doesn't seem like a good return on a 300k investment, maybe ok on a 180k investment. Then throw in the HOA and local regulations and the distance.

I think you can do as good or better on a cabin in Pigeon Forge.