Everyone loves Hawaii. It is generally considered a place where everyone wants to visit at one time…or many times in his or her lives. And wouldn’t you love to say you had a place on Hawaii??
Whenever I travel I look at real estate. It’s a habit, addiction, whatever you want to call it. And that’s how a Thanksgiving trip to Oahu turned into a great investment with more than financial rewards.
We got lost driving to Hanauma Bay and ended up dead-ending into the fabulous Mandarin Oriental hotel (now the Kahala Hotel) and taking a bathroom stop. When the kids (we were with another family, too) saw the dolphins frolicking in the lagoon, we knew we had to come back.
On the return trip, I popped in to see the real estate agent with an office in the hotel and asked about properties in the neighborhood. In the next couple days, we found one priced pretty low ($330K for a two bedroom, two bath) but it was disgusting. Great view of the water (one unit back from the beach on the third floor) but yuck! I knew, though, that a fabulous view of your private beach from the huge lanai would mean, with a little work, this place could be fabulous.
The price was low but the management fees, at almost $1000 monthly, we astronomical. There was also the VERY tricky lease situation, which is common only in Hawaii and governs land put in place for the benefit of education for Hawaiian children, King Kamehameha Schools. A long story.
We pay another $1000 per month for the lease so our returns on this property would have to pencil out. I checked with the management company that manages many of the units and found out that $5000 monthly was what we would expect in rent and units were rented out on a month-to-month basis, not daily or weekly. So, it could almost pencil out…but at least we’d have a place in Hawaii! More tomorrow….