Long Distance Investing in Hawaii Waikiki

[Tyler Henry]

A few years ago I visited Waikiki, an easily immediately, it became one of my favorite places on Earth.  I could see living there at some point in time, it could be interesting just to own a condo, and rent it out, but use it on occasion as well. All the same I find it interesting that actually you can find some relatively affordable condos.  https://www.zillow.com/homedet... I live in Florida at the moment, but I was curious about anyone's experience, or if anyone invests in Waikiki knows any common pitfalls.  I've ordered the 'long distance investor' book and going to read the advice from there.  I'm wondering also if contractors/renovations are super expensive there, like everything else.  I know condo's aren't traditionally the best investment, but regardless I do like the simplicity of them.

[Daniel Kong]

Hey Tyler, I just took a look at the property you posted. This is something a lot of people who are not from Hawaii are not familiar with, but the reason why a lot of properties are "cheap", (and yours in particular) is because they are Leasehold. This means that you don't own the land under the condo, and you have to pay a monthly fee to "lease" the land. This is in addition to your property taxes, insurance and HOA. On top of that, when the lease runs out, the lease owners get back the house and you own nothing. So its almost like a depreciating asset. The closer it gets to the end of the lease, the less the property is worth, unlike most properties which appreciate over time. Just something to research more on your own and look into. Either way, good luck!