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Thank you all for your posts, you are really great!
We did look at Discovery Bay and loved the place, but they only allow 30 day rentals, and that scared us away. What a great location. And in a perfect world we'd love the Ilikai. I've heard it's the best investment property on Oahu, but it's way out of our price range.
The Ilikai is where I bought my condo. The building is well maintained and, at least as of a few years ago, it had the largest reserve balance in Hawaii. Not sure if it still does.
It also has very strong rental demand for both vacation rental or longer term rental. I personally love the location and the amenities in the building.
However, with that said, I'd also say that at its age, who knows what could be around the corner. I actually wish the hoa fees were higher to build an even larger reserve because it is a very large building.
But the units are priced high right now and I don't think it makes much sense to buy a unit at today's prices if you are expecting, or needing, to cover payments with rental income. Just my thoughts.
Discovery Bay or Villa on Eaton Square are two other nearby buildings I like. But I don't think either allows short term vacation rentals.
I looked online at some of the Ilikai unit prices. Huge price swings. Saw a lot of units bought in 2007 and then sold for 50% less 2 years later - and now back at 2007 levels. One of the for sale $1.8 million dollar units states about $5,000 in monthly income. After property tax and maintenance it doesn't leave much of a return
I looked online at some of the Ilikai unit prices. Huge price swings. Saw a lot of units bought in 2007 and then sold for 50% less 2 years later - and now back at 2007 levels. One of the for sale $1.8 million dollar units states about $5,000 in monthly income. After property tax and maintenance it doesn't leave much of a return
They are calling that $5200 net rents so it may count maintenance as an expense paid so only Mortgage out of it. I vacation rented in that $1.8 stack in 2003 when they were selling for $500-600,000. I'll gladly give up some cash flow to walk away with a million plus appreciation on a $100,000 investment any day. That building also had some management issues with the hotel ownership and that particular stack lost some oceanviews to the Hilton's time share buildings.
They are calling that $5200 net rents so it may count maintenance as an expense paid so only Mortgage out of it.
The posted monthly rental income on condos never includes maintenance fees and property taxes. That would be "net after owner costs". In the case of condo units in hotel pools however, the management fees (and possibly GET and TAT) are included in rental income figures.
The posted monthly rental income on condos never includes maintenance fees and property taxes. That would be "net after owner costs". In the case of condo units in hotel pools however, the management fees (and possibly GET and TAT) are included in rental income figures.
This is the case at The Ilikai. The $5,200/mnth is a guaranteed income program through the hotel pool that already has the management fee, TAT & GET paid. But the owner is responsible for HOA, mortgage, property tax, etc.
The hotel has a guaranteed income program that pays different guaranteed amounts depending on the view. So all 1 bedroom units, for example, with a Lagoon/Ocean view have one set guarantee. All 1-bedroom City View Units have a different set guarantee. 2-bedroom units have a different guarantee amount. Your return really ends up being impacted by which unit you choose and how much you pay for that unit. People who bought early in the development of the program end up with a better return because their purchase price was lower. And the guarantee offer is only available if you purchase one of the hotel renovated units.
The guaranteed Hotel pool is just one of many different programs and rental options available within the building. There are also many long-term rentals available for use if people don't want to use their unit for vacation rental.
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