It sounds like you are talking about Haiku Point - however, the recent sales in the complex have been $345,000; $351,000 and $355,000 - so I'm wondering if $380,000 might be aiming a little high. None of the recent sales were upgraded like yours - so perhaps $380,000 is possible, but the higher you go, the more difficult it will be for an appraisal to come in at the sales price. If the appraisal does not come in it could ruin the sale or put you in a position of lowering the price to complete the sale.
If you are thinking about renting, I do think you could get $2,000 or $2,100 - there's a listing on Craigslist now at $1,950 for a 2 bedroom with 2 parking stalls. Based on other rental listings in the area - I don't think you'd have a problem getting the rent you'd like. Nice Windward properties are always in demand.
If you'd like to work with an agent who knows the Windward side really well - I'm happy to discuss your options with you further. At Home Hawaii does both sales and property management, phone: 381-6848. Aloha, Cindy Siok, R
Yes, it makes sense that any unit with upgrades as you have described should be able to expect increased rental rates.
The problem becomes on of whether or not you really want to become a landlord and accept the risk and responsibility that comes with it. With even a brand new unit, you will encounter issues that will require your attention and money. There's always something.....
The fact that you are asking for input is a good thing....people often enter into these situations without completely understanding what it will mean to them in the long run and have a poor appreciation for what is actually involved.
Keep in mind that being a landlord is more than meets the eye.
With inventory in Honolulu at its lowest. you should get the best price in your market area. Being a landlord outside the state of Hawaii could be challenging. Look at your options closely before you make a decision.
Dave Dickey - RealtorÂ® (S)
2013 Aloha â€˜Aina Awards Nominee
Hawaii RE License RS-73032
Internet Real Estate Specialist
Century 21 All Islands LLC
2255 Kuhio Avenue Suite:1220
Honolulu, HI 96815 USA
Direct Phone: 808.852.8833
Toll Free: 888.495.0713
Usually if you can rent your home for what you are paying for it, you're doing very well. Between the tax advantages and the principal reduction you're coming out ahead. I guess my main question for you would be, 'Do you want to be a landlord and if so, do you plan to hire someone to manage the property for you or do you plan to do it yourself?'. A property manager usually charges a monthly percentage, 8-12% range, to take care of your property for you. They know the laws that must be adhered to, have a good handle on market value, will market and show the property and then vet applicants as well as take care of any maintenance issues that come up. Doing it yourself can save you money, but invite a lot of stress and headache into your life.
Based on your comps, I would say that you have a good chance of reaching that higher price point because of your upgrades. If you were the renter faced with an upgraded home for $2,100 or a basic home for $1,800, which would you choose? Someone with a strict budget may have to go with the $1,800 option, but I think most people will pay a little more for comfort. The higher price point would absorb the cost of the property manager if you decided to go that way or, if you decide to manage the property yourself, can be saved toward future maintenance and repairs.
If you decide to sell instead, I would say your upgrades would put your price point quite a hit higher then the comps of unimproved units. In this market especially, I would be very aggressive in going after a high price point. Sight unseen and based solely on recent comps of $380,000 for unimproved units I would probably aim for $425,000.
If I can be of any more assistance, please let me know. I both manage and sell on Oahu and I'd be happy to talk to you more about either option.
A House-SOLD Name!
Bob Vieira Realty, LLC