3 Great Short Term Rental Condos in West Maui Under $700,000

Looking for a couple of great short term condo buys in West Maui? Look no further than my 3 latest picks under $700,000.

As I become increasingly entrenched in representing both buyers and sellers on short term rental condo properties, I have become much more familiar of the core requirements to identify those properties with the strongest return on cash. I do caution that I do not sell investments as I don’t have a securities license, but I do know what goes into this. I own a vacation rental condo in the Honua Kai Resort, I have represented many clients on these types of properties, and my wife and I run a boutique and very successful vacation rental program through Hawaii Life Vacation Rentals.

Property #1: Hale Kai #119

This particular condo is a remodeled one bed/one bath ocean view unit of about 600 sq.ft. located in the oceanfront complex of Hale Kai in the heart of Honokowai, which is just North of Ka’anapali and just South of Kahana/Napili. This condo was originally priced at $488,000 and with a recent price reduction is now down to $399,000, and is priced to sell. This property is literally just steps to the ocean where the water is very calm here and is perfect for swimming, kayaking, SUP, etc.

This is the outstanding view of the pool area, ocean, and island of Molokai directly from the exterior of the unit (MLS# 360512)

This property has very low HOA fees, rents well with very reasonable management fees, and has excellent income history with roughly about $45,000 gross annual revenue in 2013.

Property #2: Makani Sands #110

My next pick is literally steps away from a small, yet beautiful white sand beach also located in Honokowai. Makani Sands #110 is a two bed/two bath condo of about 975 sq.ft. listed at $689,000. One of the greatest things about this condo is the fact that you can literally walk right out to the sandy beach; many of the condo complexes in Honokowai have rocky shorelines.

This condo has recently been remodeled with beautiful sand tone granite, travertine, and light cabinets. Be sure to click through all of the photos on this listing as the remodel is just spectacular in terms of the quality and aesthetics.

Makani Sands #110 (MLS# 361262) is steps away from this beautiful white sand beach

This condo did about $40,000 in a successive 6 month period last year, which is quite impressive. Furthermore, the association is making substantial structural improvements to the property, is shoreing up the seawall, and is completing redoing the pool area – this is great news for owners and guests alike.

The listing broker of the two bedroom unit here, Greg Smith from Prudential Maui Realtors, is a friend of mine and I just recently checked out his one-bedroom listing, which I was quite impressed with as well listed at $530,000, all listing details shown here.

Property #3: Honua Kai Hokulani #724

I have blogged to a nauseum about Honua Kai namely because I am a very strong believer in the property, so much so that my wife and I purchased an investment property there earlier this year, so it can’t be that much of a surprise that one of my best buys is located here. Unlike the other two complexes in this post, Honua Kai is a 10-story building with over 600 units and is truly a world-class resort. It is not for everyone, but it is spectacular.

The Honua Kai Resort

I am highlighting Hokulani #724 (MLS# 359266), it is a one bed/one bath mountain view unit located on the backside of the Hokulani Tower (the building on the right in the above photo). This property was just recently reduced to $659,000 down from its original asking price of $699,000.

I can’t think of another resort as a whole that rents as well as Honua Kai does, there are many units in the building that have over 90% average occupancy. As a consequence of this, the rental income is outstanding. I have seen many mountain view units like this at Honua Kai do around $80,000 in gross annual rental income.

For the latest on all market activity at Honua Kai, be sure to check out my comprehensive 3rd Quarter 2014 Honua Kai Market Update. For all things Honua Kai, please visit my new site entirely dedicated to Honua Kai, www.HonuaKaiBlog.com.

Why These 3 Properties?

I selected all 3 of these properties due to their strong rental income proportionate to their purchase price (the strongest rental properties in Hawaii will generally do 10% of the purchase price or more in annual gross income), they have lower operating costs i.e. HOA fees and property management fees, and they do rent very consistently (the top vacation rentals in Maui consistently have 80% average occupancy throughout the course of the year).

3 Paramount Facets of Condo Ownership to Consider

When evaluating any type of condo purchase here I always try to educate my clients on three main factors:

1. Lifestyle. What type of complex are you looking for? Highrise, lowrise, beachfront, golf course, size, location – all of these things are very important facets of ownership that should be taken into consideration into determining what is really going to be the best fit for your needs.

2. The Financial Aspect. Condo ownership costs vary greatly and they are not always completely transparent, at least at the first look. Condo HOA fees are generally based on a set price per square foot and vary greatly from complex to complex. Some condos are leasehold versus fee simple and can have very considerable monthly leasehold fees. There can be special assessments taking place in particular complexes or other financial matters, which affect your out of pocket costs. It is very important to have an advocate working on your behalf who is very familiar with all of these particulars.

3. Resale/Appreciation. I don’t have a crystal ball and can’t say for a certainty that one complex or one particular unit is set to appreciate at a quicker rate than another, but the good thing is that history generally repeats itself. I am very good at mining data, analyzing it, have a very firm understanding of important factors that lead to appreciation, and I use all of this information to help guide you in the right direction.

Gather, Relax, Celebrate, Live & Love Your Maui Life

I have grown up on the island of Maui, and with 9 years as a full time broker, I know the entire real estate inventory pretty solidly, and am committed to helping you achieve your goals. If you are motivated and ready to put the action plan into place, please let me know how I can be of service to you.

Aloha,