Kauai Dreams Realty

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Purchasing a Property with Rental Potential

Why purchasing a home on Kauai with a Rental is so popular and a good idea.

 

Many first time home buyers have been purchasing a home with a rental property. Right now to purchase a financeable single family home on Kauai a Buyer can expect to spend around $550,000. Depending on how much of a downpayment the buyer can put down their mortgage can be up to $3,000 a month with a purchase price of $550,000.

 

Single family homes around the $500-$500k price range:

Single family homes with a rental $600-650k price range:

 

Why do this?

If a buyer increases their price range it may only be $100-$200 increase on their mortgage amount. With the additional rental the purchaser can collect $1,000-$1,300 in rental income. The rental market is very good on Kauai and I don’t expect it to slow down. Now the homeowner’s $3,300 mortgage is lowered $2,000 with the rental income. A $2,000 mortgage is manageable and this is why it is making sense for buyers to purchase a property with rental potential.

I am not a mortgage lender and one should be consulted for accurate numbers.

Similar scenarios could work like a mother/father in-law could live in the studio and help the family pay for utilities. Ive had a few clients who have decided to go at the top of their price range and get a home with a rental. Versus getting a smaller home that they are not happy with.

5269 Ihilani Pl. – Call Kela for a showing. 

This property is move in ready and is perfect for someone wanting to have a mother/father in-law or a possible rental! See a virtual tour of this home below:

 

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