All Forum Posts by: Loren Clive

This is a very rough comparison, for Maui island only, but in 2012 median condo price was $356,158. Now it's $795,000 per the January 2024 report. 

Stats can be found

https://www.ramaui.com/housing-statistics

Or for all islands here

https://www.hawaiirealtors.com/resources/housing-trends-2/

Your realtor can produce more specific stats on your area of interest.

Which island are you buying on? I can help you on Maui. 

your realtor should be able to answer all of these questions

Me. We're all investors!

I'd talk with owners in the areas you want to buy so you have an idea of income, expenses, etc. Maui, for example, has been a great place to own vacation rentals historically, but we've seen a huge dip in tourism in the wake of the fires. Also there are some major zoning changes proposed.

Something you didn't mention is financing--unless you're buying cash? Here in Hawaii, condotel (vacation rental condo) financing is different from typical condo financing, so important to work with a local lender. This piece will also help you determine what you can afford and cash flow. 

Definitely talk to an attorney, Michele. Not much to add to the good advice already written, except

Your mom could easily get a reverse mortgage to pay for her care, then you and your brothers could split the equity left upon sale. I agree it makes no sense to hold onto this condo once she passes.

Once you have the LLC set up with the DCCA, you can just record a quitclaim deed with any escrow company, no lawyer necessary except to draft the deed.

However, you might consider the property tax implications. If your parents are currently claiming owner occupant exemption, they would not be able to do this with title vested in a LLC. They still could get the $200k long-term rental exemption and be taxed at a higher rate.

Sounds like a great idea to me. I have condominiumized property in Hawaii and made great money doing it, but it was more of a flipping strategy. 

You need to find an attorney to draft the condo docs, but of course you have to check zoning requirements to make sure the cpr as you envision is even possible.

split the bill, who cares about complaints? No way would I spend $10k plus on submetering

Don't listen to your girlfriend. You don't need to justify anything. This is not an ethics question--we are landlords.

Seriously, though, if you're worried about the tenants, you're in the wrong business.

In Maui County you only need smoke detectors, no carbon monoxide.