Real Estate of Mind - Cash flow Considerations - Hawaii News Now - KGMB and KHNL

Real Estate of Mind - Cash flow Considerations

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HONOLULU (HawaiiNewsNow) - When considering the purchase of a property to generate cash flow or income, there are quite a few things to consider. On today's Real Estate of Mind, Coldwell Banker Realtor Associate Scott Larimer helped us sort through them. Check out the video from this morning's Sunrise and review his outline below.  

  1. If you're going to rent it out short term, your daily rate may be higher than for a longer term rental, but vacancy is a consideration. While on-island residents are permitted to manage their own property, you may want to consider your property to be managed by someone else.
    1. Some properties can be part of hotel pools and rented out much like a hotel room.
    2. Most properties can be managed by an outside property management company.
    3. Explore all options to see which is best for your situation.
  2. If the property has a non-conforming use certificate, you may rent the property out for 30 days or longer.
    1. You may have a lower daily rate, but lower vacancy rates.
    2. You may be able to manage the property yourself.
  3. Most properties will allow you to be an owner occupant. In this case, you may live in your property, but also have the option to rent it out for income as you wish.
  4. Be sure to carefully review the specific building, zoning and related materials about the property to ensure you know what your options are. For example, a property may have Resort Zoning, which allows for daily rental, but a building/subdivision may prohibit it. A professional real estate agent can help you sort this out.

 

Click here for an example property located at the Waikiki Sunset. It is a 1 bedroom/1bath Fee Simple condotel listed for $475,000.  

  

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