Over half of my Kohala Coast buyers will be at best part-time residents, perhaps future retirement residents. For many of them the ability to obtain some rental income, either in the vacation rental market or with a long-term tenant, ranks high in their purchase criteria. While there are many suitable properties within the Kohala Coast resorts, the oceanfront residential community of Puako offers an alternative for those seeking a quieter alternative to the resort lifestyle.
Aerial view of Puako showing there are only oceanfront and almost oceanfront homes (taken in front of MLS# 282052)
Current Puako Listings with Rental Income
While Puako may be known among visitors to the Big Island for its vacation rentals, many of the homes also have units that are in demand for long-term or month-to-month rentals. While the income potential is higher in the vacation rental market, it also requires more effort on the part of the owner, even if with a rental management company, and of course entails more wear and tear on the property.
Two homes on one lot. Owners live in back for privacy, rent two units in front for income (MLS# 280597)
On the ocean side of the street, a tiny cottage or vacant lot will cost you $3 million (MLS# 278347). Just across the street you can get a lot more for your money. For example, I have listed a property with two separate homes for $2,175,000 total (MLS# 280597). The sellers live in the back property and rent two units in the front to cover their living expenses. Because they are on property, the sellers prefer long-term tenants, but the fully furnished units would also work for the vacation rental market.
The back home of 1,782 sq. ft. is also listed separately for $1,025,000 (MLS# 282035) and has an enclosed deck to enjoy the native forest
This is an example of a Puako lot that has been made into “condos.” Each home actually can be sold separately. You can buy both homes with an investment partner or family member for a compound! (The back home is listed, call me for info on the front home as a separate purchase).
Here are two more Hawaii Life listings on one lot that are long-term rentals, listed separately, but could be bought together.
Upstairs unit interior of the front 1,224 sq. ft. home listed for $995,000 (MLS# 282549)
This 608 sq. ft. rear cottage is the lowest priced Puako home for sale, listed at $795,000 (MLS# 282550)
Puako Listings with Vacation Rental History
At the moment only one of the eleven active Puako home listings is currently offered to the vacation rental market. This recently built six-bedroom bamboo home, priced at $2,400,000, is also suitable for events. A prospective buyer would need to check with the County to determine what permits might be required to support various potential income uses.
Pakalana Sanctuary has six bedrooms and six baths around a central courtyard (MLS# 278200)
The three larger homes available on the beachfront side of Puako Beach Drive are currently not rentals, but there is a market for luxury oceanfront vacation rental properties. If this is of interest, I can introduce you to an experienced rental manager at the same time I show you these homes.
A hui hou,
Beth Thoma Robinson, R(B)