Financial Freedom through Real Estate (in 2022)

Written by: Landin Gentry

Did you know that most Americans are only 3 years away from living financially free? What is

the one thing stopping you from living the life of your dreams?

In 3 years you could own 3 short term rentals on the island of Maui, with the average yearly

income of $100k for a Short Term Rental. That is almost double the average annual income of a

single person in the US. That voice telling you that there is more to life than working the 9-5 is

one that you should listen to. If you’re ready to make the change, keep reading.

What is a Short Term Rental?

A Short Term Rental or “Vacation Rental” is a residence that is rented for a short period of time.

Think of a week-long vacation with your family, or a weekend retreat with your best friends.

Instead of staying in a hotel with a mini fridge, you get to stay in a full service rental, with all the

amenities of home.

How much money can I make?

Short Term Rentals, or STR for short, can be extremely profitable. When comparing a long term

rental to a short term rental in the same geographical area, the STR outperforms by 3-4x its

monthly income.

How do I buy something that is so expensive?

If you are already a homeowner, you may be sitting on a considerable amount of equity. You

may be able to use a portion of that as a down payment on a Short Term Rental. If you have

been saving for a down payment, an unconventional approach would be to use that money on a

STR investment. That property will most likely allow you to pay your mortgage, rent, and

continue to contribute to savings for another rental. If you have no money to put down, it’s time

to get creative. You could find a condo or a home that needs work done and put in some “sweat

equity,” also known as a flip. Flips can be a quick way to make cash if you are willing to put in

the hard work. Another potential option would be to find a business partner with the cash to put

down.

How many STR’s do I need?

Think about how much money you need to make per month to live your dream life. Whether that

be $10,000 or $50,000. The answer to that question will determine how many rental properties

you will need to give you the freedom to do what you want. I can help you sort out the numbers.

Give me a call!

How do I buy more than one?

After one year of the condo being used as a Short Term Rental, you can use that income to

qualify for more properties. The more properties, the more money you will make. This means

going on that dream vacation, finally buying the car you've been wanting, or even setting up

your family for generational wealth. Life is too short to work for the person above you, that

makes more money than you.

But is it a good investment?

As previously stated, the average income on a STR on Maui is over $100,000 per year. How

nice would it be to make 100k and not have be a slave to your job? In most cases, STR’s on

Maui require 20-30% as a down payment. This may seem like a lot, but that only means with

more money down, your monthly income will be greater. Real estate, and specifically Maui Real

estate, has a proven track record of rising. Per MauiNow the median condo price in 2012 was

$322,000. Now in 2022 the median price of a condo on Maui is just over $794,000. That means

condo values have more than doubled in the last 10 years, making Maui Real estate an

attractive investment over the long term.

In conclusion, owning Maui Real Estate can be your ticket to live the rest of your life just as you

dreamed. I would love to help you through the process of buying or selling property here on

Maui. Please feel free to contact me for any and all things Maui Real Estate.