Here's a back of the envelope. I don't know how to post a table, so I'll summarize. I can break things down further if you like
Price $719K
Down $210K (30%)
Yearly nut $70,884*
Gross estimate $140,000**
Net after Management $20,000**
Simple ROI 9.7%
*Nut includes mortgage, insurance, taxes, HOA fees (which include utilities), and the lease fee.
**Based on 70% occupancy, based on spring, early summer rates.
*** includes 25% management fee and assumed 10% maintenance costs on the gross
A couple words on the assumptions. This unit is in a vacation rental program, so you can look at the rates and availability on the calendar. I'm going by spring-early summer rates, essentially assuming peak season does't exist, when rates and occupancy are much higher. Nearby units have occupancy rates of 80% and above. Unit is sold turnkey (common in Hawaii). If I make even slightly rosier assumptions, like say 75% occupancy, it becomes much more attractive.
The catch is that with each passing year, it becomes more and more difficult to sell, with the lease expiring in 27 years. So the down payment is likely making a one way trip.
My motivation is that I'm selling a property locally (for a number of reasons), and would like to buy something else. But I can't find anything locally that makes sense to buy, so I'm looking out of state.
@BECABECA I think your comment is spot on. This really isn't a real estate deal. It is more like buying a business. One that has a guaranteed closing date.