Condo + Hotel = Condotel
Hawaii is a seriously beautiful place. The weather is temperate year round, the water hovers between 75 and 80 degrees and you can live outdoors from January through December. The people are genuine and friendly, and Hawaii is still part of the United States!
Enter the Condotel
For many vacationers, this is the ideal type of property to own. It’s the perfect place to stay when they’re in town. They can let friends and family use the property, or they can place the unit in a hotel rental pool and then set certain time periods throughout the year to use the unit themselves. Other options include long-term renters or placing the unit with a vacation rental specialist. All of this depends on each property's rules on rentals.
Financing can be tricky for condo-hotels, however, and this is where an experienced agent becomes invaluable. Knowing what’s needed to close on a condo-hotel and whom you need to go to for financing is important, because you can't finance a condo-hotel like a regular condo purchase. Financing is available, but it's specific to each property, so knowing who to turn to for assistance is vital to prevent you from spinning your wheels.
Is a Condotel right for you?
Sit down and think about what you really want. Do you want to keep the unit short term as a cash flow investment? Do you want to keep it long term for personal and family use, while making some extra cash and renting it out when it’s not in use? What are your goals for this unit? Where on the island do you want to be: In close proximity to restaurants and shopping or across the street from the beach? What's important to you? What kind of cash investment are you willing to make to own a bonafide piece of paradise?
Once you have your goals set and priorities in order, you'll know if a condotel is right for you.