A Great Neighborhood for Investors

Perhaps the Best-Kept Secret In Real Estate.

Waikiki. Possibly the world’s most famous beach, the Diamond Head setting, upscale shops, restaurants and hotels ... also has some of the lowest condo prices on the island. That’s right, the lowest.

It’s an investor’s paradise. And all within blocks of the beach.

Advantages to Investing in Waikiki

Waikiki investors can rent long term or short term, to visiting tourists, to students, hotel workers, military, retirees or use the unit as a second home. Renters make up approximately 62 percent of the Waikiki residents. If you’re thinking about getting into rentals, it makes perfect sense to invest where the renters are plentiful.

Condo hotels can be purchased for just over $100,000 — but these may require larger down payments. If there is an operating hotel desk downstairs, an investor will need 30 to 35 percent down. If the unit doesn’t have a kitchen — some of the converted hotel rooms don’t — lenders will call that a “lodging unit” and may require 50 percent down.

A condominium might be ineligible for conforming financing based on the percentage of owner occupants in the building, whether participation in a rental pool is mandatory, whether daily maid service is available, whether units can legally be rented out on a daily basis and for other specific conditions or rules outlined in the condo documents.

The upside to owning one of these hotel room-like units, however, is the phenomenal potential for income — $150 to $200 per night in some cases. The majority of these are managed through a hotel pool, but some are individually managed.

At Prudential Locations you will find Realtors fully versed in the nuances of the different types of condos in Waikiki and the associated lending guidelines. Not only that, they’ll also be able to tell you which units rent and which don’t. It’s the kind of expertise we pride ourselves on and the kind of information you cannot afford to be without. Search Waikiki real estate.