All Forum Posts by: Laura Myers

 John,

You need to be familiar with zoning and any future changes that may arise. Basically, you cannot STR unless it's vacation allowable. Real estate agents know properties by complex and whether it's permissible. Too many times people think they can just purchase a single family home and AirBnb it out, but they can't.

I currently have a lot of land in Carolina Forest that doubled in value, so I can see your thought process. That being said, we decided to build since the value will only hold or increase. I interviewed builders and one was $160/sqft, so I feel like $250 is high? That particular builder also builds a lot of spec homes and that was his price out the door. The builder I chose was $125/sqft with obvious additions for this/that, but I liked his quality much better. Either way, NEW homes around us for half the size START at $350k with very builder-grade materials. We would never be able to afford our house in a gated community along the intracoastal waterway without already owning this lot. Builders will definitely want your property and that tells you it has value. (A builder wanted ours, too) 

Good luck!

Aloha @Sarah Parker,

There are many variables to consider in getting into the Maui market and it sounds like you have some basic idea of how it works. You’re on the right track! The biggest question would be what price point you’re in. Everyone is looking to step into the market here, so the lower price points go FAST and you’ll need to be prepared. Your returns may not yield what they could on the mainland, but historically we hold value and it’s a great long game. There are several agents on Maui very well versed in short term rentals and/or RSPS certified, such as myself. (Resort and Second Home Property Specialist) It’s also a small island, so agents have good networks yo refer you to for lending, management, etc.  Don’t hesitate to reach out if you have more questions. 

I applaud your sister for moving here to teach, as Maui is in desperate need of teachers. Housing is indeed a real concern here and often times people move here without doing research and preparing themselves and they end up moving off island after a few short months. (It’s also the reason most employers won’t hire someone unless you’ve already lived on island at least six months) It’s great that you are helping to guide her as it does take a village!

The are more tenants than places to rent, so she may look into rooming with a colleague? I have been looking on the west side for a place to rent for a pastor who is relocating here and have had no luck. I would recommend joining the Maui Facebook groups as rents are sometimes posted there. Also, look into property management companies on the west side and begin communicating with them. Since rentals are few and far between, often times they have people pounding on their door to rent and never even go public. 

The other concern is online scams. I was notified of my own home being published for rent and used all of my listing photos. Luckily, the possible tenant was savvy enough to find me and reach out to see if it was “too good to be true”. There is definitely a challenge ahead so just be sure to verify everything to avoid being scammed. Utilizing a proper management company or sifting through their websites is probably the safest bet. 

Good luck. 

I would first ask why you are comparing Zillow estimate to the listing price? My experience shows that Zillow doesn't really know how to evaluate homes and never has. How is the priced compared to similar properties nearby? Any "rentable" property will have more value simply due to the fact it can create income. Avoid assessing the property based on what Zillow thinks and take a look at other rentable properties and similarities. 

(Also, Maui County isn't trying to phase out 3,000 STR properties. Let's be clear that a particular council member is and it is unlikely it would ever pass however, it's tabled. It includes 7,200 condos which bring in MILLIONS of dollars to the county which is why the Mayor doesn't even support it. It is a much deeper story than one can discuss on a forum and I personally, wouldn't let that deter me from purchasing.)

@Joshua Schmitt, if it's in designated zoning then the complex itself is permitted already. If you're looking to get a STR or BNB permit, there's limited availability in each district and nearly all are full. That applies more to homes, not condos.

Congrats on owning a piece of paradise! 

Although, I am not as familiar with the Big Island, please look into this further. Make sure that the county will allow you to Airbnb that property. If it is zoned Ag, it's quite possible that will restrict you from renting it out as a vacation property. In other counties, you can be fined up to $10,000/day if you do this. You may look into requesting a permit for a B&B if he is to live on it while managing, but those processes can sometimes take years to be approved. Also, consider any additional insurances you would need to carry for that district. 

Have you also considered the terrain and cost to build? Much to consider, but good luck! After all, it is St Patrick's Day :)

@Matt Guptill Working with VA loans can be complex, so it's great to hear of other uses for it. If you are already holding a VA loan on your current property, will you need to re-fi it into a different type of loan in order to secure one for a multi-family?

I am currently working with a couple who intend to purchase with a VA loan and it is not very common here on Maui. We had many hoops to jump through when we purchased ourselves years ago and financing through USAA was difficult due to time changes and inexperience with Hawaii in general.

I appreciate your feedback and will definitely reach out as we continue forward. It's not often to find someone well versed in VA!!

:) Mahalo

Aloha Matt,

Have you already connected with a local lender regarding VA loans here on Maui? My understanding was that it had to be only be on your primary home and one at a time, so you wouldn't be able to utilize it for an investment property, but correct me if I'm wrong. This sparks my curiosity if you're able to do this, as my husband and I also have a VA loan.

You are correct that multi family is not as common to find and keep in mind standards usually fall short of VA requirements. For a price point that high, you're best to find a long term condo in Wailea and maximize the long term benefits. I'd love to know how this works out for you and good luck!