Maui Short Term Rental

[Carson McGee]

Investment Info:

Condo buy & hold investment in Lahaina.

Purchase price: $1,100,000
Cash invested: $275,000

This is a two-bedroom condo in Maui, it is zoned for short-term rental. This condo was purchased with cash and equity pulled out with delayed financing. The annual gross revenue is $165,000-$170,000. View the listing at Elevated-Stays.co

What made you interested in investing in this type of deal?

This was an opportunity to get a high cash-flowing short-term rental in a prime location.

How did you find this deal and how did you negotiate it?

I found it on the MLS and negotiated with the seller using cash and waiving inspections.

How did you finance this deal?

We bought the deal cash and refinanced after the fact to repurpose the equity in more deals.

How did you add value to the deal?

We added some value to the average daily rate through updated design (furniture/art). We also had confidence in our ability to manage and operate better than our competition, increasing annual revenue.

What was the outcome?

The outcome was a very successful short-term rental that has generated over $46,000 in revenue in three and a half months.

Lessons learned? Challenges?

A challenge was getting lenders for non-warrantable condos but we found a way to successfully pull our equity out.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We used a licensed team member and a DSCR lender who used AirDNA revenue estimates to qualify. Feel free to reach out for their contact info.