Location for 2nd Home / Vacation Rental Condo? (Kailua, Princeville: rentals, condos)

[mtech2]

My wife an I are considering moving to one of the Hawaiian islands but we only have the perspective as visiting as tourists. We are having difficulty deciding which island / location to move to that would best fit us. I am hoping some friendly locals on this board can give us some direction.

I work for a global company and telecommute so I can work from anywhere in the world. So finding employment on the islands is not an issue. A big factor in our move is accessibility to the outdoors, good weather and friendly down to earth people. I am a triathlete and I need consistent non-rainy weather so I can bike, swim and run. Although I grew up in San Diego, I hate swimming in cold water or in a wet suit. You simply can't beat the warm open water swimming in HI!

We are very simple people in our mid-30s, have no kids and our current dwelling is 1,000 sqft. We are looking for a safe environment were the people are friendly and we could feel safe if we had to walk down the street to go the the market during the evening.

We don't exactly know how many months out of the year or how many years we would be in HI. My best guess is most of the year for at least the next 2 years. To preserve optionality, we were thinking we could purchase a 1 or 2 bedroom condo so that if things didn't work out we could use the rental money to cover the mortgage in the event we move back to the mainland. We arn't looking to make any money from the rental revenue stream but would like to make money via the appreciation of the property.

I hate putting money details in a post but the term 'Expensive' is all relative to how much money you have and what your needs are. We make a little over $200k/yr and are not fancy people and currently have no debt or other obligations.

[hothulamaui]

if you are looking for a condo that you can rent when you are gone from here, then several of the islands would work for you as long as you bought in an area tourist want to stay. on maui that would be the south or west sides. kona side big island. kauai has poipu and the princeville area. waikiki are in oahu and some others. most all of these places too are great for ocean activities

[HankDfrmSD]

Originally Posted by mtech2

My wife an I are considering moving to one of the Hawaiian islands but we only have the perspective as visiting as tourists. We are having difficulty deciding which island / location to move to that would best fit us. I am hoping some friendly locals on this board can give us some direction.

We are very simple people in our mid-30s, have no kids and our current dwelling is 1,000 sqft. We are looking for a safe environment were the people are friendly and we could feel safe if we had to walk down the street to go the the market during the evening.

We don't exactly know how many months out of the year or how many years we would be in HI. My best guess is most of the year for at least the next 2 years. To preserve optionality, we were thinking we could purchase a 1 or 2 bedroom condo so that if things didn't work out we could use the rental money to cover the mortgage in the event we move back to the mainland. We arn't looking to make any money from the rental revenue stream but would like to make money via the appreciation of the property.

I hate putting money details in a post but the term 'Expensive' is all relative to how much money you have and what your needs are. We make a little over $200k/yr and are not fancy people and currently have no debt or other obligations.

Which islalnd?

Take this quiz:

Best Hawaiian Island - Choosing an Island for your Hawaii vacation

Buy condo and cover your mortgage while gone?

Let's say you pick Kauai, and settle in a condo in Princeville (where my son lives, and where he and I own a vacation rental). Here are some prices for condos:

Cliffs, Hanalei, HI 96722 - Zillow

Princeville Sealodge # C6, Hanalei, HI 96722 - Zillow

Pali Ke Kua # 141141, Hanalei, HI 96722 - Zillow

Here's how they rent (as a vacation rental):

Princeville Vacation Rentals - VRBO® Vacation Rentals Princeville Kauai (http://www.vrbo.com/vacation-rentals/usa/hawaii/kauai/north/princeville#a8434 - broken link)

Princeville Vacation Rentals - VRBO® Vacation Rentals Princeville Kauai (http://www.vrbo.com/vacation-rentals/usa/hawaii/kauai/north/princeville#a8956 - broken link)

Princeville Vacation Rentals - VRBO® Vacation Rentals Princeville Kauai (http://www.vrbo.com/vacation-rentals/usa/hawaii/kauai/north/princeville#a8311 - broken link)

You would probably have to hire a management company, who would take maybe 40%, or get in the vacation rental management business, as I did. Not for the faint-of-heart. Lots of un-anticipated expenses.

I looked for long term rentals in these three condo complexes on Craigslist, and didn't find any.

If Oahu is your choice, here are some samples in Kailua, where I live:

1030 Aoloa Pl APT 310B, Kailua, HI 96734 - Zillow

1015 Aoloa Pl, Kailua, HI 96734 - Zillow

There are long term rentals available in this neighborhood. Here are a couple - you can search for more:

Beautifully upgraded 2bed/2bath/2parking (http://honolulu.craigslist.org/oah/apa/1623069141.html - broken link)

Windward Harbour 3/3/2 (http://honolulu.craigslist.org/oah/apa/1607456711.html - broken link)

What you are talking about is doable, on your income, but sharpen your pencil before you just assume that rental income will cover your mortgage (and the taxes, and the utilities, and the maintenance, and the weekly cleaning fee, and the supplies, and the ..................)

Hank

[Hawaii Bound]

One thing to consider with a condo are the maintenance fees. Especially in Kauai. I have seen some of the maintenence fees that are higher than my house payment is. Although a condo would probably provide the best opportunity to meet people I prefer the privacy of a home on land. I know a lot of the condos people rent out so I do not know how many actually have full time residents living in them. Just some things to think about.

[hotzcatz]

The flip side is with a home on land the yardwork always needs to be done and there are security issues if it is a part time owner.

What about vacation rental? Would that work? Might be nicer to just rent for several months instead of having the whole headache of ownership?