Maui Short Term Rental

[Carson McGee]

Investment Info:

Single-family residence buy & hold investment in Kihei.

Purchase price: $875,000
Cash invested: $218,750

This is a one-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 $135,000-$150,000. 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. This particular complex has lower HOA fees than the average oceanfront unit.

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

This deal was found on the MLS and a cash offer was submitted at asking shortly after listing. We negotiated with the seller using our cash advantage, waiving inspections, and flexibility with a quick closing date.

How did you finance this deal?

I bought the deal in cash and completed delayed refinancing. This allowed me 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 already generated over $34,000 in revenue in three months.

Lessons learned? Challenges?

A challenge was getting lenders for non-warrantable condos but we found lenders that allowed us 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.