Factor in higher renovation budgets due to rising material & labor costs.

Also factoring in that majority of the tourist come to Oahu not Big Island I think you might have to lower your occupancy rating.  

My guess is that you ARE grossing closer to 24% than 16% on the deals you close (or should try to be anyway), which means you ARE closer to maintaining 50% of the amount that is in it for your Investors (4% vs 8%), forever!

Not its saying simple, however its highly possible with the conditions in this market.I can go into detail about the additional million plus people moving to the area, the light rail construction,  and other factors but thats another topic.Same goes with the "trophy numbers".

One,if they have similar properties in the area that may help. the quality of the property is also a factor.

In your younger years ( 20's ) many people think about they have a great income and the job will last forever so why save etc.

@Vincent Crane - I am with you, It's hard to beat LA's culture and weather but I don't necessarily see myself living here forever.

You don't actually make any money at them because they take forever to put together and you will have to attempt 20 of them before you get one to close.

^^^^^^^^^^^^^^^^^^^^^^FOR STEVEN^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Everyone;Newbies and seasoned investors and operators, there are four underlying factors of real property.

Do you have closing costs and holding costs factored?