Sandpiper: Good return on your dollar
If you are looking for a lower end condo with good rental income, my favorite is Sandpiper. Starting at just $465,000 for a 2 bedroom 2 bath unit, these units easily bring in more than $2000 a month of rental income. Other more expensive units often only bring in a few hundred dollars of additional income while costing substantially more.
Sandpiper Village is a complex consisting of 84 units with 2 bedroom 2 bath units downstairs and 3 bedroom 2.5 bath units upstairs. The third bedroom in the upstairs Sandpiper is actually a loft bedroom with a small corner area where a closet bar can be installed. Many people use this loft area for an office or study as it is open to below and readily visible from the living area and entry.
What is unique about Sandpiper is that it has two outside entrances. The main entrance opens into the living / dining / kitchen area with a master bedroom / bath beyond that. The side entrance opens directly into the second master bedroom / bath which is connected to the aforementioned living area by an interior door. This enables you to either rent the whole unit or to rent each side separately.
Having these two separate rental units is what generates such good rental income. All you need is a double lock on the interior door which connects the second master to the living area, along with a microwave and small refrigerator for the “studio” side and you’re ready to go. If you look at long term rentals on www.kauaiworld.com (The Garden Island Newspaper) you’ll often see the furnished studios renting from $800 on up and the one bedroom side renting from $1300 on up including utilities.
Assuming a purchase price of $465 with 20% down ($93K) and a loan amount of $372K for 30 years at 6.5% interest, your monthly payment is $2351. Although this does not include taxes, insurance, or your HOA fees, it does go a long way towards making a sizeable dent in the payment. Also, if you want to have a place for yourself but still want some income, you can rent one side and save the other for when you come to visit.
If you are not convinced, take some time and look at rentals in The Garden Island under Condos for Rent in Princeville. Look at the rental amount then check the Multiple Listing Service to determine the list price of condos in that complex. You’ll see that, for the dollar, Sandpiper is a great way to get a foothold in the market with a steady return. All rentals refer to long term rentals. These are all the Sandpiper units on the Market as of 6-13-07:
MLS # Tp St DOM Taxkey Tnr Price Location Land area Details
193146 T A 78 4-5-4-15-21-37 FS $465,000 Sandpiper Village I #137 1,042 #137 2/2.0
163432 T A 586 4-5-4-15-21-41 FS $475,000 Sandpiper Village I #204 1,173 #204 3/2.5
196664 T A 8 4-5-4-15-21-20 FS $484,000 Sandpiper Village I #120 1,042 #120 2/2.0
190769 T A 134 4-5-4-15-21-22 FS $499,000 Sandpiper Village I #122 1,042 #122 2/2.0
196998 T A 341 4-5-4-15-21-43 FS $525,000 Sandpiper Village I #206 1,173 #206 2/2.5
190632 T A 134 4-5-4-15-21-34 FS $550,000 Sandpiper Village I #134 1,042 #134 2/2.0
183228 T A 293 4-5-4-15-21-33 FS $559,000 Sandpiper Village I #133 1,042 #133 2/2.0
181966 T A 319 4-5-4-15-21-50 FS $575,000 Sandpiper Village I #213 1,173 #213 3/2.5
179778 T A 359 4-5-4-15-21-57 FS $579,000 Sandpiper Village I #220 1,173 #220 3/2.5
This information has been supplied by third parties and has not been independently verified by Hawaii Information Service and is, therefore, not guaranteed.
Aloha,
Elaine Schaefer
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