All Forum Posts by: Cole Schlack

I am looking to purchase a STR in Maui but I have run into a few road blocks. I have been told a loan has to originate from the island and that you need to put 30% down payment on a purchase. Anybody have lending ideas to get around this or how to finance in Maui?

I'm in Hawaii and have invested out of state. It's unnerving at first but if you have a property manager you're comfortable with then it'll cool your nerves after awhile. I got out of investing for a little while but looking to do the same. Almost all of my other REI friends are also investing out of state and they're doing well.

Good luck!

Hi!  I am interested in buying a leasehold property on Oahu as an investment property.  I have a have some questions:

What fees are there when purchasing a leasehold property other than the purchase price?

How do you run the numbers on a leasehold property?

Is there a REA on Oahu that you recommend?

Thank you SO much for your help!!

Welcome to BP and the investment community!

If anyone else is on Oahu next Saturday January 21st, 2023 at 3:00PM, we're having our monthly Honolulu Multifamily and More meetup at Lokahi Brewing (Mezzanine). 

WE will try to make it to the meetup one of these days.

Hello everyone,

As a prospective investor in short-term rental, I would like to get some feedback regarding the upcoming demand for short-term rental. Considering the current economic climate, where layoffs are happening every other day, and interest rates are going off the roof, is it a good time to invest in STR or wait for some time? Also, in this market, will people go on vacations and spend money on STR?

please hare your thoughts

which STR areas/cities have less seasonality

You do realize that if you were calculating this STR as a cap rate, your numbers would be beat by the LTR cap rate in virtually every cheap market in the country. I am not stating this to bash your STR numbers. Similar to how different LTR markets have different cap rates, it is the same for STRs. Hawaii's low STR cap rate reflects the limited supply, the desired destination, the expected appreciation (neighborhoodscout lists most areas of Hawaii as 9/10 or 10/10 in appreciation for this century), and expected rent appreciation.

My San Diego STRs have been off market for some of the last 3 years. In 2019 (the last year they were available for rent the entire year) they had $160k rent and about $1.2m value (current value about $1.5m). Standard STR PM in Mission Beach is 25% (there are some cheaper, but they usually are deficient in some respect), so $40k PM fees. Consumable supplies is included in the PM fees. Property tax ~1.1% at purchase and historically is reduced percentage over time. Do not have exact utilities but these units are small and in mild climate.

The bad, city just implemented a quota with a lottery. Only one of our two Mission Beach units was selected. In spite of these units having been STRs for 23 years and having paid the various occupancy taxes, the city is stating one of these units cannot be an STR after May 1. We have contributed to a legal fund to fight this. It seems very wrong. Our units have been STRs with same ownership longer than 90% of the STRs in the area, but due to bad luck of the draw we are being told one unit needs to cease being an STR.