All Forum Posts by: Alton P.

This is very true, with this large amount of capital, need to think big like NFL player level.

I read financial proforma of class B hotel in Maui, it's pretty darn good, in fact it's perhaps the top ten best performing hotel in US in term of vacancy and RevPAR.

STR and stuff like that is more for small investor like us with half to 1 mil buying power, but when it is above 5% you really need to talk to some serious developer/realtor in the island and understand the business.

If I have that size of capital I would import contractor from California to finish my project in Kukio LOL 

Currently in kona there're only few new construction that can still being built, I guess it is selling for 1.5mil and above.

if you have that amount, go buy house in Kukio, 30 min above Kona, avg price is 10-15 mil, your neighbour would be someone like Britney Spears. Dont care about cash flow , just STR it and you can double that 5 mil to 10 mil in few years. This is actually the hottest market in America IMO.

With that level amount of money you have to play big and do NOT think small ( i am still small investor LOL)

 in general:
- multifamily both in big island and honolulu is lackluster investment
-in general honolulu STR doesn't appreciate that much, kona STR is appreciating 'mildly'.
- hilo is relatively flat.
- as for regulation, you could buy multiple cashflowing condo STR in vacation-resort zone
- but best total return is always single family home, again with 5 mil I would entirely do flip in the richest neighborhood day and night. Actually now if someone can pay me to do it, I would do it by now LOL .... this is way more profitable than chasing CF.

Hawaii wise-- Kihei and north shore of Oahu. I think that's we narrowed it down too but understanding restrictions are a bit confusing. Much like you, this is my real target of 2024. 

Miami I don't know why you have in same bucket as Hawaii. Or is it just a price bucket?

Careful, the whole place may be underwater by 2050....   You could probably find a nice 10 unit apt building in Kalihi or Waianae for cheap but you'll need to hire security.

There is no substitute for Hawaii. WIth that investment capital, one strategy to consider is a small boutique hotel with commercial zoning? Invest the rest on where you truly want to be into a legacy property. STR's are indeed a moving target in most coastal areas. There's oddly a lot of seasonal investors that travel between Hawaii and the Oregon Coast. We have some ridiculously productive oceanfront and waterfront luxury STR's here. I also am keen on a second home in Kauai at some point in the not too distant future..Unlikely to be a BNB though. Good luck!

Hey there! Sounds like you've got quite the budget to play with. Personally, I'd lean towards diversifying your investments across the different locations you're considering. Each market has its own dynamics and risks, so spreading your $5.3M across Hawaii (Kona), Miami, and Honolulu could be a solid strategy.

For the short-term rentals in Kona, Hawaii, the tourism industry there is pretty robust, but do keep an eye on local regulations and potential changes in the vacation rental landscape. Miami is a hot market too, with a mix of short-term and long-term rental potential. As for Honolulu, multifamily properties can offer stable returns, especially if you plan to live in one unit.

Consider the local economies, job markets, and future development plans in each location. Also, think about your risk tolerance and whether you prefer the stability of long-term rentals or the potential for higher short-term gains. It might be worth consulting with a local real estate expert in each area to get more nuanced insights.

Given your budget, you could potentially diversify by allocating a portion to each location. This way, you're not putting all your eggs in one basket. Just my two cents, I don't own any properties in any of these locations, I'm just curious hehe – hope it helps!

Remember In Hawaii, STRs come with extra taxes: a 10.25% Transient Accommodations Tax (TAT), a 4% General Excise Tax (GET), plus a 0.5% Oahu Surcharge Tax on gross income from rents. Even if you are out of state resident that GET tax is charged on Hawaii clients which is messed up.

STRs are definitely in vogue, but they're not without risks. Across Europe, cities are cracking down with new bylaws to regulate and tax them. In some cases, they're banning them entirely. Take Toronto, for instance. They've recently outlawed STRs of secondary dwellings due to a lack of affordable rental housing. You can rent out your primary residence or a room in it, but there's an annual license fee and a nightly tax involved.

Many investors jumped on the STR bandwagon, expecting the market to stay the same. Big mistake. They didn't account for regulatory changes or market saturation, which could lower prices. With historically low barriers to entry, STRs seemed like a golden opportunity. But now, many Toronto property owners are facing financial troubles, with the new rules set to kick in six months.

Bottom line: Don't bank on the current market conditions staying the same, especially if you're making a 25-year financial commitment. Personally, I stay away from the mainstream trends where everyone who is priced out of traditional long term rentals are now trying to rent out a room or a whole house on the daily. 

I don't own in Hawaii, but my perception from my research there is that it's not an ideal cash flow market right now but can be great for appreciation, which it sounds like would be a pretty good deal in your scenario.

If I had that much cash to deploy personally I would be putting it into properties that are most likely to hold value and most likely to gain value.  To me that means properties that there is a limited supply of.  Hawaii is a good start on that front.  Beachfront in a premium market like Destin is another spot I'd be looking.

If your considering Miami, Fl for a STR, that's a tough place to have one due to restrictions. @Carson McGee Is the person to chat with about STR in Hawaii! From what he shared with me; I'd be parking a good bit of that money into a property there.