Buy-and-hold is indeed difficulty in Hawaii, but I feel the long-term benefits will greatly outweigh the short-term costs.

The benefit to me would far outweigh the cost, IMO.

.· Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustainssubstantial damage, there is potential for suspension of cash flow distributions;· Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits

As some others have mentioned, there are plenty of DST 1031 funds you can invest the proceeds to to continue to defer taxes without the added management, however then the question becomes does the benefits of passivity and tax efficiencies outweigh the cons of being able to potentially make more by being active in the business.

To me, the benefits have certainly outweighed the issues, but I do have good tenants.

A Lot of folks like the high cash flow/low purchase price in this area, but I find expenses and property management cost outweigh the purchase discount.good luck!

I also tend to agree that in general, the combination of city wage tax and property taxes are outweighed by property taxes in DelCo.

This consistent demand, and growth of it, in turn enables trusted and known managers to command a price premium in the marketplace.But the benefits of vacation rental managers’ scaling outweigh basic brand marketing alone.

I talk to EVERYONE I can who will talk to me who FAR outweighs my experience and intelligence in this field (there are many).

It comes with pros and cons, but for us the cons are outweighed by the fact that we are living rent free right now and when we move out, we will have another rental unit producing cash flow.I think that if you can find a property get your numbers to work out with FHA financing anywhere in the 3.5%-10% down payment range than you should do it and lock in the low rate.Like @Dan Mackin said, it's tight right now here, but if you are patient and quick when you do find something you like, it can be done.