Maui Short Term Rental

[Carson McGee]

Investment Info:

Condo buy & hold investment.

Purchase price: $675,000
Cash invested: $168,750

This is a one-bedroom condo at an oceanfront resort in Lahiana. It is a zoned short-term rental and had value add opportunities. This condo was a partial BRRRR, I purchased it with cash and made some updates. With market appreciation and a slightly nicer unit, I was able to refinance at a higher value than the purchase price. The annual gross revenue is $110,000-$125,000. 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. We already had a successful unit at this particular complex, we were confident in the performance potential.

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?

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

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. I found a way to successfully pull our equity out and benefit from market appreciation.

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.