Coconut Coast Vacation Rental

[Francis J Carey]

Investment Info:

Condo buy & hold investment.

Purchase price: $330,000
Cash invested: $60,000

We were managing this unit as a vacation rental when the owner decided to sell. We used our savings to get the property at a price of $330,000 in November of 2021. Similar units in the complex are now selling for $425,000 - $440,000 . We list this unit on Airbnb and run at about 90% occupancy. This unit clears close to $2000 monthly after expenses including HOA fee. We are currently saving most of the proceeds in order to acquire another vacation rental.

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

My wife and I started a property management business during the pandemic. The owner of this unit decided to sell so we pooled our savings and we were able to get the deal done.

How did you add value to the deal?

We added a brand new sleeper sofa (no easy task on Kauai lol) , all new lamps, end tables etc. also added a brand new King size bed.

What was the outcome?

The unit has been a complete success for us and we really enjoy providing a fantastic island experience.

Lessons learned? Challenges?

We learned so much as far as the complexities of Hawaii's transient accommodations tax, zoning and Airbnb hosting. We manage another six units and now have close to three hundred 5 star reviews.

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

My wife Jennifer Carey is a talented and long time realtor. We are experienced in hosting here on Kauai for many mainland owners who wish to own a piece of paradise and make some money when they're not on island.