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Hard money and fix and flip loans in Kailua, HI
Financing for beach-town homes, rebuilds and long-term rentals on the Windward side.
The Kailua market for investors
Kailua is one of the most sought-after towns on Oahu, with its beaches, a walkable town center and a short drive over the Pali to downtown Honolulu. Prices are among the highest on the island, and long-term rentals attract families, professionals and military households from nearby Marine Corps Base Hawaii.
Investors renovate and resell older homes, replace small houses with new ones, and hold long-term rentals. Kailua has been at the center of Oahu’s debate over vacation rentals, and investors should expect strict enforcement of the minimum rental period.
Areas investors ask about
- Near the beach and Lanikai: premium homes, rebuilds and some of the island’s highest values
- Coconut Grove and Enchanted Lake: single-family homes to renovate and rent
- Maunawili and the back of the valley: larger lots and older homes
Plan for these on a Kailua deal
- Outside resort-zoned areas, residential rentals on Oahu must run at least 30 days, and a 2025 ordinance raises that to 90 days for many properties. Underwrite on long-term rent unless the property may legally rent for shorter stays.
- Low-lying areas near the canals and beach are in flood zones. Check the flood zone and get flood and hurricane insurance quotes before you make an offer. Where coverage is required, the premium is part of the payment.
- With high land values, rebuilds and additional dwelling units can make sense. Confirm the lot’s eligibility with the city first.
- A home the owner does not live in is taxed at the Residential rate if assessed under $1 million, and in the higher Residential A class at $1 million or more. Use the rental figure, not the seller’s bill, when you calculate the DSCR.
Loans available in Kailua
| Program | Use it for | Top leverage |
|---|---|---|
| DSCR rental loans | Purchase or refinance of long-term rentals, condos, condotels and permitted vacation rentals | 85% loan-to-value to buy, 80% on a cash-out refinance |
| Ground-up construction loans | Building a home or rental from the ground up, with the lot included | 90% of cost for experienced builders, up to 70 to 75% of the finished value |
| Fix and flip loans | Purchase plus renovation of a property you intend to sell | 90% of the purchase price and 100% of the rehab, up to 70 to 75% of after-repair value |
| Portfolio and commercial loans | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal |
Kailua hard money loans: common questions
Yes, at up to 90% of the purchase price and 100% of the rehab, within 70 to 75% of the after-repair value, at a 720+ credit score.
Generally not for stays shorter than the city minimum, unless the property holds a nonconforming use certificate or registration. Most Kailua investment homes are underwritten on long-term rent.
Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready. Rental and DSCR loans take about 30 days, appraisal included. Closings are handled by a Hawaii escrow company.
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Looking at a property in Kailua?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.