Buying a Vacation Home in Kauai, and Subsidize Your Mortgage by Vacation Renting
There are a lot of details that go along with setting a vacation rental up, and there are specific areas that allow for vacation rentals, so be sure to consult with a real estate professional before trying to do this.
If you are considering buying a vacation home in Kauai, and subsidizing your mortgage by vacation renting, you should check out Kauai Exclusive.
Kauai Exclusive Management is a full service vacation rental business, and property management company for luxury vacation rental owners in Kauai, Hawaii. KEM provides varying levels of service to property owners depending on their needs. We offer a very high level of service with the most competitive rates on the island.
Our philosophy is very simple: we are dedicated to ensuring your ultimate satisfaction as a property owner in Kauai. Our mission is to provide you with peace of mind that your assets will be well cared for, provide you with professional and personal service, and help you achieve your revenue goals. We are not only an investment, but your key to a trouble-free property management solution.
For details on our unique advertising services, marketing plan, property management services, and fee structure, please contact us at:
Josh Rudinoff
1.877.465.2824
josh@kauaiexclusive.com
www.kauaiexclusive.com
Katie Minkus, R(BIC)
August 13, 2009
Aloha, Justin. Thank you for pointing out that the most important thing about a vacation rental in paradise is that you hire the right professionals – first with the property purchase, and then to manage while not in Hawaii to oversee the property day in and day out.
I’d like to point out that (at least on the Big Island) it is extremely difficult to “make money” with a vacation rental property. The honest, ethical and professional vacation rental managers on this island will tell say you are “lucky” to “break even” – and that’s typically only after 10-15 years of rentals.
So “subsidize” is exactly the correct word to use, because while vacation rental income can help offset some of the costs of property ownership in Hawaii, it’s not the same as other places in the world where rental income can not only cover all costs, but provide positive cash flow as well. That’s just not the nature of the numbers in Hawaii, it never really has been, and probably never will be – I call it the “paradise tax.”
Katie Minkus, R(BIC)
August 13, 2009
Aloha, Justin. Thank you for pointing out that the most important thing about a vacation rental in paradise is that you hire the right professionals – first with the property purchase, and then to manage while not in Hawaii to oversee the property day in and day out.
I’d like to point out that (at least on the Big Island) it is extremely difficult to “make money” with a vacation rental property. The honest, ethical and professional vacation rental managers on this island will tell say you are “lucky” to “break even” – and that’s typically only after 10-15 years of rentals.
So “subsidize” is exactly the correct word to use, because while vacation rental income can help offset some of the costs of property ownership in Hawaii, it’s not the same as other places in the world where rental income can not only cover all costs, but provide positive cash flow as well. That’s just not the nature of the numbers in Hawaii, it never really has been, and probably never will be – I call it the “paradise tax.”
Justin - Head Web Head
August 13, 2009
I agree Katie. Subsidize is definitely the correct word to use.
Justin - Head Web Head
August 13, 2009
I agree Katie. Subsidize is definitely the correct word to use.
Byron Barth
August 13, 2009
Aloha, Head Web Head! Thanks for posting the article written by Josh Rudinoff from Kauai Exclusive Management. Mahalo!
Byron Barth
August 13, 2009
Aloha, Head Web Head! Thanks for posting the article written by Josh Rudinoff from Kauai Exclusive Management. Mahalo!
Ron Margolis, RA
August 13, 2009
Another key factor coming into play is the changing landscape of FHA guidelines for condominium purchase. The new guidelines and the criteria established by Freddie Mac and Fannie Mae are going to make it more challenging to procure a loan on such a property. All the more reason to talk an agent about project specifics and collaborate with an island-based lender who understands the idiosynchrasies of Hawaiian condominiums.
Ron Margolis, RA
August 13, 2009
Another key factor coming into play is the changing landscape of FHA guidelines for condominium purchase. The new guidelines and the criteria established by Freddie Mac and Fannie Mae are going to make it more challenging to procure a loan on such a property. All the more reason to talk an agent about project specifics and collaborate with an island-based lender who understands the idiosynchrasies of Hawaiian condominiums.