Are "condotels" a sound real estate investment?

Real Estate of Mind: 12/4/14

HONOLULU (HawaiiNewsNow) - Condotels have recently become popular with investors and second home regular visitors to the islands because of the ease of management and ability to use the unit whenever the owner wants to use it.

Condotels are condominiums with zoning which allows them to do short term overnight rentals. There is usually a hotel pool management company which runs the front desk, obtains reservations and turnover of the rooms.

Most are located in Waikiki, with prices ranging from $69,000 to $8,300,000.  Financing is limited, and most that can be financed require a 40% down payment.

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