All Forum Posts by: Lake Lutes

Hi Shanna! Sounds like a great investment opportunity. If your numbers are right, it sounds like a worth while risk. I live in Hawaii full time and will say we've had an insane spike in tourism again - lots of visitors and demand for rental cars, dinner reservations, room rentals, tourist activities, etc. I will say, however, that Hawaii's economy is very frail. If COVID rates spike again due to the Delta variant, the Hawaiian government is one of the most liberal in the country, and its possible there are additional shutdowns/mask mandates/etc. As it stands, we're one of the few states with a continued mask mandate and continued COVID restrictions. This could derail a short term investment property and leave a huge hole in your pocket. Last thing to consider would be the ever changing short term rental regulations. Late 2019 they banned so many short term rentals and retracted their permitting for such rentals, and I could see them becoming even more restrictive to stimulate money back into the hotel industry - this could also force you to go to a long term rental plan and slash your margins. Just food for thought - everything in real estate is a weighing between risk and profit - decide which is more prevalent here and jump!

Whats up Eric! I am an agent here in Hawaii and active duty Air Force as well. Let me know if you want to connect and talk shop! Been here for about 3 years investing and running the agent side of things so would be happy to help in any way you need. Hope to connect soon - aloha and welcome man!

Hi Liana! Super fun to read through your thread - thanks for sharing. Like anything, there's pros and cons in both directions. One thing that is for sure is the market here on Oahu is and has been insane for the past 16 months or so. If you've ever considered selling your home here on the islands, there's never been a better time. Let me know if you want to chat about it! Aloha

I am buying right now! The market is tough, but deals can still be had. In addition, my team provides me a list of off market deals weekly from their lead generation, so that helps. Happy to share if you reach out! Aloha

Aloha from Oahu! Cashflow is a really tough goal to have on the islands, especially Oahu. However, it is definitely still possible. Of course, it's always going to depend on your mortgage which varies greatly depending on how the property was financed, but your best bet is probably going to be a property with multiple units, or a property with an "Ohana Unit" as we call them here in Hawaii. Think of these as "mother-in-law" units. Using a real current example on one of my investments, the home in the ~$750K range leaves me with an average mortgage of about~$3500. The 3/1 main home and has a 2/1 Ohana unit downstairs, renting for $2750 and $2000 respectively, cash flowing this property after all expenses are paid. To be fair, these kinds of deals have been much more difficult to come by in the last year and a half with the recent increase in demand. Nonetheless - you CAN cashflow on Oahu, you just have to be creative! Shoot me a DM if you'd like to discuss more.

I would absolutely add Lake Tahoe California to that as well - the market is so slim on inventory and over saturated with buyers. I don't necessarily think people in those markets are thirsty for affordable deals, they're just looking for deals period! Even those willing to overpay aren't landing deals in some markets right now.

Well done @John Mayer! Tough to find deals that work this well in this market, but they're out there. Came out really nice.

If you click the link I posted above, then navigate to the left side where it says "approved STRs", it has a list of all addresses and properties!

In late 2019, the government passed a number of different laws and restrictions concerning short term rentals (defined as less than 30 day stays). Check out this website for more details: http://www.honolulu.gov/dppstr...

In summary, there are very specific areas/buildings allowing short term rentals, and the taxes and fees for those units are much higher than non-short term permitted properties. A few properties got grandfathered in around the island but it is next to impossible to get a new property approved for short term renting.

Long term rentals (30+ day stays) are great options and the right properties/areas have extremely high rental demand.

Sounds good to me! I’ll always take an opportunity to chat real estate. Let me know when you have in mind.