The Drawbacks All Housing Investors Must Avoid
Houses for sale in Kailua Kona are anything but cheap. Not only are they typically newer, upscale homes; the land that they occupy is incredibly valuable, significantly driving up their prices. Thus, if you are looking to purchase houses for sale in Kailua Kona to rent out, you want to pick one that will have ample appeal to prospective renters and produce an adequate return on your hefty investment.
It can be difficult to gauge what exactly will appeal to your prospective renters, particularly if you are new to a market. Here are a few significant drawbacks that should make you think twice about purchasing houses for sale in Kailua Kona (or elsewhere).
Minimal Storage
The essentialness of ample storage will vary from tenant to tenant. Wealthier tenants with lots of expensive trinkets and gadgets will value houses for sale in Kailua Kona with plenty of storage space. Minimalist families of modest income will not need a four-car garage or a full basement for storage.
That being said, low storage is different from no storage. You should wipe houses for sale in Kailua Kona that completely lack storage off of your radar. Lack of storage is a major setback for all prospective tenants. When objects lack a storage space, they end up strewn about the house, creating undesirable clutter and chaos.
Of course, there are exceptions and modifiers to the rule. Houses that lack a garage for storage may retain their appeal so long as there is a shed in the backyard. You can purchase relatively inexpensive sheds from stores like Lowes.
Houses that lack cabinets and closets but are equipped with ample floor space may still be good contenders as well. Plenty of floor space means room for storage furniture, i.e. dressers, desks, shelving units, etc. However, keep in mind that it is both inconvenient and expensive for tenants to purchase such items themselves. If you are looking to purchase houses for sale in Kailua Kona that lack storage, consider spending the extra money to furnish the home yourself.
Inconvenient Floor Plans
If you are looking to purchase houses for sale in Kailua Kona to rent out, be mindful of the floor plan. Many houses, particularly those with multiple add-ons, have convoluted and inconvenient floor plans.
One of the most significant drawbacks in a floor plan is the presence of an awkwardly situated bedroom. Many houses with add-ons have bedrooms that are only accessible through other bedrooms or living spaces. If your tenants are a couple with no children, that may not be an issue. But for a family with children, privacy is essential, and these types of layouts are extremely undesirable.
These types of families will also be turned away by inconveniently small spaces. If one bedroom is significantly smaller than the others, parents then have to negotiate a war for bedroom space between their children. Oftentimes houses with add-on bedrooms may appeal to a larger family but lack the appropriate kitchen, living room, and dining room space to accommodate them.
Think from the perspective of your prospective tenants when observing the layout. If there is an element of the floor plan that is awkward or inconvenient, it’s time to look at a different property.
Significant Acreage
Sure, if you are looking to purchase houses for sale in Kailua Kona to rent to farmers, significant acreage is certainly a plus. There are areas on the outskirts of Kailua Kona that are rife with large properties perfect for tropical agriculture.
However, the market for Kailua Kona homes is largely comprised of working families and retired couples. These demographic groups often lack the time and manpower necessary to care for a large property. Even if your renters are adamant that they want to have a garden or farm, be weary. Many an idealist has purchased a large property in hopes of starting a bountiful agricultural operation only to become overwhelmed with the physical demands, financial burdens, and time constraints it inevitably bears.
A small lot or backyard is an excellent selling point for families; it’s also a great spot for that shed we mentioned if your space lacks a garage, as many houses do in Kona. However, if you are looking at a large tract of land, only rent it out to seasoned agriculturalists.
Poor Square Footage
Balance is key. While you don’t want your acreage to be too large, you also don’t want your floor plan to be too small. Sure, some homes with low square footage will appeal to minimalist singles or couples, and larger homes will gain less traction as the higher rental rates will not equate to any real practical benefit in terms of floor space.
However, a tiny space with only one or two bedrooms can be problematic. Oftentimes these types of spaces are more suitable for transient individuals looking for a short-term lease. And that means significant losses due to frequent and potentially drawn out turnover.
While small spaces may appeal to some couples, most will want at least one extra bedroom and plenty of space. Many couples seeking houses for sale in Kailua Kona are retirees looking for a spacious and comfortable place to settle down, with space for family to visit. Younger couples likely want extra space for starting a family.
Your best bet is somewhere in the middle. A good range to shoot for is from 1,000-1,400 square feet.