All Forum Posts by: Mark Waite

@John Underwood please don't make blanket statements like you did unless you fully understand the STR markets in Hawaii. Your comment is actually way off base.

@Mike Morehead, there are other options beyond using Hawaii based lenders. There are situations where the property you are looking at may necessitate the use of a local lender, such as for a leasehold property. But there are other options out there. And anyone who says they work with investors should have those options in their back pocket. Let’s connect off line and I can make some introductions.

Quote from @Carlos Ptriawan:

Quote from @Eduardo Bilbao:

Quote from @Bryan Vukelich:

Aloha @Sam Booth

If you analyze Hawaii numbers compared to other spots in the mainland then it makes way more sense to invest in the mainland. Now if you as a person rather than an investor want to own property in Hawaii then go for it but your opportunity cost is not being taken into account. 

I think the biggest mistake for investors that want to invest in Hawaii is if they only look for financial benefit only. Because it's guaranteed mainland would be better if one is looking for a return only. To invest in the island the investor must love the island,the lifestyle and the culture. For example my motivation is to invest in HI, but to live/work remote there , to retire ; so even with all STR difficulty that's created by gov. , I see that only as a small hassle.

Also many Hawaiian towns offered a lot of varieties in terms of lifestyle, you could have Waikiki but if you are into Oceanport you have Kona and Hilo as well, with Maui if you are into whitesand beach. This is the biggest factor I think. What lifestyle fits you and your budget.

@Carlos Ptriawan agree to some degree, especially in today’s market. However, I and other agents have mainland clients who purchase in Hawaii only for the financial benefits. But they are also very disciplined with their investment strategy and will pass if the property doesn’t pencil out.

Granted there are far more buyers who are getting into the STR business as a lifestyle purchase.

Opportunities still exist. You just need to do your homework and be ready to move if the deal makes sense.

Aloha Yna,

Just a couple of comments. First, please make sure you fully understand that STR market in Hawaii. Each county (and there are four) handles them differently. Second, the 90 day minimum stay to which you are referring has been successfully challenged in the courts by opponents of the change. It is a contentious issue on Oahu and still very much in flux.

Mark

We are evaluating various vacation rental software programs such as OwnerRez, Hostfully, etc. Looking for recommendations from the community, and why you are recommending that platform.

Aloha Ashton, I own a brokerage in Hawai’i. I’m on Maui and have an agent on Kauai. We’ve helped a lot of investors evaluate and acquire vacation rentals on both islands. Location is key and will impact your occupancy rate. We’ve seen rates 90+% over the past four years as tourism to the islands has picked up. But I would not use that high of an estimate when running numbers. I advise clients to go conservative and stay around 75%, and be pleasantly surprised if you get a higher rate.

Feel free to reach out if you would like to talk further.

Mark

Actually, during the pandemic would've been the best time to do it. The STR market took off once tourism resumed and has continue to be very robust.

For starters, the article's headline reads:  "Honolulu will require 90-day minimum stays for Airbnbs and short-term rentals outside resort areas in October." Honolulu is one of four counties in Hawaii, so the comment about it being applicable to Hawaii was incorrect and very off-base. 

Each county regulates short term rentals differently. Honolulu has been very aggressive in their efforts to limit the available inventory of short term rentals. In my opinion, even without this new law, it is not a great market because the numbers don't pencil out. There are way too many hotels on the island.

Maui, Kauai and Hawaii Island each have their own regulations. Maui's is all about how the property is zoned and what the HOA by-laws allow. If both are aligned, then you can close today and start doing overnight rentals tomorrow. The other two islands have designated visitor destination areas where STR's can operate so long as they have a valid permit.

Just reading what you wrote, not assuming anything.

True, you're going to have an easier time financing a primary residence. By looking at condos where short term rentals are not allowed, you'll keep your purchase price down as well.
Yes, we can help you when you are ready to look on Oahu. I have an agent there who is very well versed on the recently passed short term rental restrictions. I would suggest buying on investment property on Oahu only if you are intending to make it a long-term rental.
Feel free to email me directly, mark @ beachologyinc dot com.

Aloha Kristen, I have a little experience, both on my own and helping clients. We have a shortage of long-term rental housing so you would have no problems renting out long-term. Your returns won't be nearly as good as if you did short term rentals, if that is important to you. Happy to answer any questions you may have.