All Forum Posts by: Mark Waite

@Todd Rector Todd, I'm a realtor on Maui and have worked with a number of STR investors, as well as own a pretty successful one myself. Since the Lahaina fires, there has definitely been a market shift towards a buyers market driven by increased inventory, a reduction in buying activity and politics. The word I would use is approach with caution and keep a long-term perspective/expectation, as anyone should when buying an STR.

I do believe there are opportunities here, but patience and prepardeness is key. If you want to chat further, let me know.

Familiar with the saying "the sum is greater than the parts"? In this case, the sum being two homes, a pool cabana, a detached two-car garage and an in-ground pool. Try to take the parts and you'll find that you cannot beat the sum from a price perspective. Yes, some work is needed but you'll still be ahead with the sum. And, everything is fully permitted!

Set upon a 1.22-acre parcel, this rare find's structures are strategically positioned to offer unparalleled privacy for all. The main residence, a 3-bed, 2-bath home spanning 1569 square feet, featuring an attached two-car garage for added convenience. Adjacent is the charming "ohana," a second 3-bedroom, 2-bathroom dwelling with 1212 square feet of living space. Adding to the allure is the versatile "recreation building" which, in the past, has been used as a rental, complete with 1 bed, 1 bath, an office/2nd bed, and a loft area, offering an additional 750 square feet of living space. Completing the ensemble is a detached 2-car garage, offering ample storage and parking options.

The property is surrounded by upcountry conveniences, including the Haleakala Waldorf School, Kula School, Kula Community Complex, Kula Post Office, Kula Bistro, and Morihara Store.

Live in one house, rent the second one and the rec building out. Or rent all three out. There are a myriad of opportunities. Presently, the sellers have only the two homes rented out on month to month leases. 

Take a Video tour of the property

Taking my realtor hat off for this discussion and putting on my investor hat. If you are looking to purchase an STR in Hawaii, take a close look at the data. The tourism authority has had some good information in the past about how many visitors come to each island and, of those visitors, how many book STRs. To me, that is extremely critical. Hotel saturation has to be considered.
If you are simply buying for a lifestyle investment, then you have much more leeway in what/where you might consider buying. But, regardless of the location, Hawaii always has been and always will be a popular, year-round tourist destination. If you get help and look in the right locations, you can make the numbers work and still enjoy the property with your family.

Makani, there has been some good info shared by other Hawaii realtors. If you cull anything from the feedback, it is that each county (there are four in Hawaii) regulate STRs differently.

I'm on Maui where if you are looking at STRs, you're going to be looking at condos. You cannot even apply for an STR permit on a single family home until after you've owned it for five years (and there is no guarantee you will get the permit). The good thing about condos is that no permits are required; you only need to ensure that county zoning and HOA allow for it. BTW, you can do an LTR on any property - house or condo - without applying for a permit.

In the right location, you should expect to see at least a 2x return on an STR as opposed to an LTR. Again, depends upon location.

Aloha Wendy, I just moved over to REAL Brokerage. Happy to chat with you about it, if of interest.

@Moses Moreno Depends upon who you talk to and which side of the issue they are on. My belief is that this is a political ploy to placate the Lahaina Strong group. You cannot simply eliminate a property right with the stroke of a pen and, as a retired judge, I'm sure Bissen knows this. But he had to do something. And this isn't going to solve the housing issue. Affordable housing, and the lack thereof, has far more to do with politics than with people buying STR's. The long-term adverse impacts if this were ever to come to fruition is the loss of jobs, the loss of tax revenue and decreased property values, all of which Bissen has acknowledged.

Some owners are attempting to cash out because they don't want to wait. Others are in the camp of staying the course.

Ultimately, this is going to result in lawsuits (likely class action) and cost the county far more to defend. And likely going to drag on for a some time.

Thanks for sharing Henry. I live full time on Maui and am a full time real estate broker so I'm very attuned to what is going on.

My recommendation for anyone is to educate yourself, whether its Hawaii or elsewhere, because if you are aware of how STRs are regulated in Hawaii, this is far easier said that done. Even the Attorney General has advised that passage would likely result on a lawsuit that would not be favorable to the state. The reason being that the State has allowed the four counties to regulate STRs, and why each county does it differently.

The argument behind this is very weak. The reason there is a housing shortage has nothing to do with STRs and everything to do with politics. I live on Maui, and every affordable housing project gets analyzed with a microscope. The time and regulatory oversight kills developers and why very few want to build affordable housing. Nearly 1/3 of every dollar spent for development goes to regulatory costs. Insane in a market where construction costs are already high

It is unfortunate to see articles such as the AP article because they simply show one side of the story, not the full story. Its articles such as these that are having a impact on an economy that is 80% driven by tourism. You should also be aware that the hotel industry carries a lot of clout. Don't believe me? Then ask why the property tax rates for hotels on Maui hasn't increased in over two years, yet they continue to raise it for STR's as well as non-owner occupied residential properties.

Please keep it all in perspective and do your homework. Not everything you read is completely factual.

I insured a residential property that we are renovating with Obie. They were quick and very reasonable compared to other carriers.

I'm coming up on policy renewal and, unfortunately, Obie no longer has a realationship with that carrier so I'll be curious to see what they bring to the table as other options.

Overall, nothing negative to say about them.

If Waikiki is anything like the Ritz in Kapalua, you'll have to use their property management at a fee of 50% plus.

Agree with @Carlos Ptriawan that you're better off in one of the luxury resort districts on Maui. Prices are lower and you can actually make money! 

@Ken Li DM me if you want to chat further.

Aloha @Simon Smith, I own a brokerage in HI and am happy to chat offline. there is a lot to be aware of when it comes to short term and long term rentals here.