Air bnb Investment in Waikiki

[Sydni Taylor]

Investment Info:

Condo buy & hold investment.

Purchase price: $85,000
Cash invested: $95,000

Air bnb rental 1 bed 1 bath, 4th floor unit, did a little rehab, have it managed by Vacasa, they do a great job. Very low vacancy. Luckly I had built up a reserve because when Covid hit, Air bnb rentals were not allowed for 10 months!

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

Price was right, it is a lease hold with 18 years left on the lease, but it has good cash flow and my family or I can use it as well.

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

real estate agent

How did you finance this deal?

Cash

How did you add value to the deal?

repainted and upgraded some furniture and artwork

What was the outcome?

More consistant rentals

Lessons learned? Challenges?

Originally I hired a less expensive rental management company (10%) This resulted in not as much exposure= not consistent rentals=nickel and dime expenses that were unnecessary. Because I live in California it was hard to "manage" the manager.
I switched to Vacasa- a true professional in the air bnb industry. They charge (25%) but well worth it. The prices have gone up for nightly rental, based on algorithms and my vacancy rate is very low. I make more money even though I pay higher fees.

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

Yes, Melissa from Stott,
But I will be an agent there soon, so you can count on me.Lol, but seriously, use me.