Waikiki Penthouse BnB Investment Opportunity

[Matthew Bernal]

Investment Info:

Condo buy & hold investment in Honolulu.

Purchase price: $2,500,000
Cash invested: $50,000

Under contract on three penthouses in the Hawaiian Monarch off of Niu!
Project involves some renovation, but hold time shouldn't be longer than 3 months before cash out refinancing.

CAP Rate: 17.48%
ConC Return: 16.56%
DCR: 2.01X
Equity IRR: 31.73%
Equity Multiple: 1.32x
NOI: 436,953

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

Honolulu is rated A+ for short term rentals according to AirDnA. Why not make passive income?

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

I loved the condo I was renting, and asked my landlord if he'd be willing to sell. Turns out he owns every penthouse on the 40th floor. He agreed to give me a discount if I got all three, so here I am!

How did you finance this deal?

I am approved for 85-90% of the purchase price and 100% of the rehab costs. Looking for a partner to fill the gap!

How did you add value to the deal?

I created the opportunity, put the team together, formulated the LLC, negotiated the price, and did all the research to ensure a low risk underwriting strategy.

What was the outcome?

I close in a few weeks! Just looking for that Gap Partner!

Lessons learned? Challenges?

Short Term Rentals are a whole new beast. These penthouses gave me a crash course!

[David Rucker]

@Karl Denton

Hi Karl, Hawaiian Monarch is a condotel in the resort zone and as such was not affected by the most recent legislation (Bill 41).   

David