All Forum Posts by: Shanna Arthur

Aloha Everyone,

Wow. What a rollercoaster!  My realtor (and two other realtors) confirmed that this particular complex was zoned “resort” therefore all the condos were automatically able to be short term rentals. Well, I called the county permitting department and they said that in fact there were only 20 units in the building that were permitted to be short term rentals and the unit that I was looking to purchase, was not one of them and could never be one of them. I am so glad I called because I would have been stuck with a great condo, but very little room for profit. Interestingly, this experience has given me more insight into what I want.  I really would like to give  a short term rental (my friends and I call them vacation rentals) a try as an investment for a while and see how that fares for my family. Thanks for your help everyone!  
Malama Pono,

Shanna

@William Beck Yes, taxes and property values are high.  Hawaii now adds 10% to any short term vacation rental.  I think the least I will stand to profit is about $1000 per month.  When I initially organized my goals it was to purchase a multi family unit with a profit of $1000 per month, so at minimum, these two paths are the same, but the short term has ability to profit much more if it’s attractive enough for vacationers. 

@Bruce Woodruff Yes. 2 bedroom units in the building are renting for anywhere from $150-$260 per night. They are 75-100% full for the next 3 months. 

Aloha,

I’m currently refinancing my primary residence to fund my second investment property. (First is a long term rental). I have found a permitted vacation rental on the beach that I like, but I fear that there will not be a high enough return in the immediate future. It’s a hard to come by condo of which I have been given early access to. I have lots of experience staying in vacation rentals and live within one mile of the unit. If I can rent the unit for at least half the month, the mortgage and fees will be covered. At this point in time most units in the building are already reserved 75-100% for the next few months. It’s going to be some work to get the down payment secured because my refi will take longer than the purchase. Needless to say, I’m a little freaked out because I need to see some return on my investment relatively quickly as I am the only one working (teacher) in a family of five. Am I crazy?  If the unit is rented full time, I could stand to profit $2000-$4000 per month depending on the room rate I charge. 
Mahalo for your thoughts,

Shanna