Top Picks: Kailua Kona Homes for Sale $1-1.5 Million

The scenario was this: a couple had sold an investment property and had the proceeds in a 1031 exchange account, with two weeks to go on the 45-day period to nominate their replacement property. They had history and affinity for the Big Island, and so began an intensive look at investment properties that could maybe one day be their primary residence. They had an abundance of choice as they picked their top three.

Although our search went to higher price points, I was pleasantly surprised to find great choices in the $1 – 1.5 million range. There are currently 45 active listings. in that range. Here are three of my favorites among current listings. Any one of them would be a no-brainer for a second home, long term rental, or move-in ready primary residence.

Secluded Heʻeia Bay is accessed right across the street from one of my top picks in Kailua Kona homes for sale between $1 million and $1.5 million.

Lokahi Makai Subdivision

Well appointed kitchen in this 3 bed/2 bath home in Lokahi Makai (MLS 718598) offered for $ 1,085,000. Did I mention some of the furniture still has tags on?

Starting at the northern side of town – close to Keahole airport, West Hawaii Community College, Costco – and a short drive to the bigger beaches up the coast, we found a gem in the Lokahi Makai subdivision. This 3 bed/2 bath single level home was newly remodeled with plank flooring, and a big tiled bathroom in the primary bedroom. As a bonus, it is offered fully furnished. Off the dining room enter a well maintained, fully fenced yard with an area for outdoor dining and privacy from neighbors – this home is super sweet inside and out.

Fully fenced back yard, low maintenance, and ready for evening BBQs with friends.

There are other listings in the subdivision if this one sells first – at only slightly higher price points.

Keauhou View Estates

Kitchen counter seating for a quick breakfast or to keep the cook company. From the sink you look towards the living room and bit of ocean view (MLS 718139).  Asking $1,199,000.

Skipping all the way to near the south side of Kailua Kona town, there is a small, established neighborhood called Keauhou View Estates, close to “Magic Sands” – properly known as Laʻaloa – Beach Park.

Here we found another 3 bed/2 bath home at the end of cul-de-sac. It also had been recently upgraded with vinyl wood plank flooring and a primary bathroom remodeled with elegant stone and travertine. Also offered mostly furnished. The lot is landscaped with multiple levels, rock walls, tropical fruit trees, and an elevated deck with ocean and sunset views.

Tropical landscaping, fruit trees, and elevated ocean view deck make for a stunning back yard at this property in Keauhou View Estates

Keauhou Resort Node = Short Term Vacation Rental Potential

As readers will remember from my many posts in 2018 and 2019 regarding the then-new regulation by Hawaiʻi County of unhosted Short Term Vacation Rentals (now called Transient Accommodation Rentals), a single family home in residential zoning would not be eligible for this use if it did not apply for and receive a non-conforming use certificate at the time. If a property does not have a current STVR license, now it must have one of these permitted zoning classifications to apply for one:

• V (Resort);
• CG (General Commercial);
• CV (Village Commercial);
• Residential and Commercial Districts situated in the General Plan’s Resort and Resort Node areas; or
• RM (Multi-family Residential) for multiple family dwellings within a condominium property regime.

Imagine my excitement at finding this 3 bed/2 bath home, backing up to the Kona Country Club Ocean Golf course and a short walk or drive to the ocean, which happens to be in Keauhou Resort Node (MLS 714295). I could envision multiple scenarios for this property besides simply buying it as a primary residence and enjoying the lifestyle. As a second home, a new owner could apply for a short term rental license and generate income when they were not in residence. Or it could be an ideal long term rental, perhaps for medical professionals working at one of the nearby facilities.

Well shoots, after I drafted this blog post, the home went into escrow. I will be watching carefully. Let me know if you are looking for a single family home with short term rental potential – weʻll find it!