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Let’s Talk Income Property | Buying a Vacation Rental on Maui

So, you want a place in Maui but you can’t see yourself living here full time? Imagine if you could pay for your family’s plane tickets, all the yummy acai bowls, fresh poke, and lilikoi margaritas you desire, and afford the cost of staying at a five-star resort just by buying your own place.

YOU CAN!

Here’s How:

Below I have a price break down for a vacation rentable unit that is currently on the market in Kihei at the Kamaole Sands complex.

It is a one bedroom, two bath unit, that was just renovated and is selling for $519,900. The payments are estimated based on a 4.0%, 30-year mortgage. The predicted gross income is based on the recorded past 8 months of rental income in the unit pre remodel. See Kelly Swanson’s page for more info on this particular unit.

Kamaole Sands Financial Breakdown by Year
  10% Down 15% Down 20% Down 25% Down
Down Payment  $  51,990.00  $ 77,985.00  $ 103,980.00  $ 129,975.00
Mortgage Payment  $  26,808.00  $ 25,320.00  $   23,832.00  $   22,344.00
Tax & Maintenance Fee  $  10,071.36  $ 10,071.36  $   10,071.36  $   10,071.36
Rental Income  $  61,437.81  $ 61,437.81  $   61,437.81  $   61,437.81
Net Profit  $  24,558.45  $ 26,046.45  $   27,534.45  $   29,022.45
Kamaole Sands Financial Breakdown by Month
  10% Down 15% Down 20% Down 25% Down
Down Payment  $  51,990.00  $ 77,985.00  $ 103,980.00  $ 129,975.00
Mortgage Payment  $    2,234.00  $   2,110.00  $     1,986.00  $     1,862.00
Tax & Maintenance Fee  $       839.28  $      839.28  $        839.28  $        839.28
Rental Income  $    5,119.82  $   5,119.82  $     5,119.82  $     5,119.82
Net Profit  $    2,046.54  $   2,170.54  $     2,294.54  $     2,418.54

*This is only an estimate. Realtors are not accountants nor loan officers. Please use your own due diligence and contact your professional of choice when buying a home.

Consensus:

So you are telling me I could net over $25K a year on my vacation rental?!

Yes, that is precisely what I am telling you! So, give me a call and let me show you what amazing income properties are on the market today or visit my page to read about why you should Maui or Bust and How to Move to Maui.

Aloha,
Lena

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Kai

April 10, 2019

Does this calculation factor in management company fees? I suspect it does not. Most property management companies handling short term vacation rentals in Hawaii are getting between 30-40% off the top line rental income.

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