studio/1BR rental property

[Carlos Ptriawan]

Where is the place in Honolulu that's good for an investment property with studio/1BR using fee simple? I see Makaha tower is nice, what's the vacancy rate in there?

[Hope Hatton]

I am a realtor who lives and sells in Makaha. Everything the other posters have said is true. However, their suggestions depend on the amount you have to invest and why. Ewa beach and Waikiki you will spend hundreds of thousands of dollars more for a studio or 1 bedroom than in Makaha. If you can afford it, then definitely follow their advice. If you are realistically looking in the under $200k market (and you don't want to retire to the Big Island), then you may have few choices besides Makaha. Investment-wise you may not see much appreciation in the value of the property if you are already close to retirement age. Here are my impressions of Makaha Valley Towers: the maintenance fees are high, but they cover all the utilities, and are much lower than compared to Waikiki condos that also include all utilities. Retirees like this option because they can predict their expenses. But its true, rentals here will only just cover your expenses, you won't make much profit if any . The building adheres strictly to Oahu vacation rental rules...you can only rent per 30 day rentals. If you are a long way off from retirement, you may do better with Makaha Valley Plantation, which has 2 bedroom units for a similar price. There are lower maintenance fees for you, with the tenant paying some of their own utilities, and the size of the units opens you up to a larger rental pool. When you are closer to retirement, you can always sell the plantations unit and buy in the Towers using a 1031 exchange a few years before you move. Or...If you can wait for the next market downturn, Makaha Beach Cabanas is a great value for a direct beachfront 1 BR condo on Oahu.