Flipping on Maui is a materials and permits game. Lumber, cabinets and windows come by barge, county permits take time, and the house you buy was probably built before anyone thought about termite shields. The upside is that finished homes in Central Maui sell into one of the highest-priced markets in the country.
In short: LendingStreet funds fix and flip loans on 1-8 unit investor properties in Kahului, Wailuku and across Maui, from $150,000 to $5M+. Programs go up to 90% of total cost and up to 100% of the rehab budget on some files, interest-only, with closings in as little as 10 days. You exit by selling or by refinancing into a long-term DSCR rental loan.
Most Kahului flips are 1950s to 1970s homes in the older Dream City streets: single-story wood-frame houses with original kitchens, jalousie windows and additions of uncertain history. In Wailuku the stock runs older, with plantation-era cottages near the town core and split-level homes in Wailuku Heights.
Upcountry flips in Pukalani and Makawao come with bigger lots and views but also cesspools, catchment questions and longer drives for trades. Kihei offers condo renovations, where the association, not the county, sets most of the rules.
We size flip loans on loan-to-cost: the purchase price plus the rehab budget. On some programs that reaches 90% of total cost with up to 100% of rehab funded through draws as work is completed. The after-repair value supports the deal, but the loan does not exceed program limits on cost.
Rehab money is released after inspections, so plan your contractor's schedule around draws rather than a lump sum at closing. A clear scope of work with line-item costs gets reviewed faster.
Keep a cash cushion for the period between demolition and the first funded draw.
This example is illustrative and not a quote. An investor buys a dated three-bedroom Kahului home for $760,000 and budgets $145,000 for a new kitchen and baths, termite repairs, windows, electrical and paint. Total cost is $905,000.
At 90% of cost the loan is $814,000, so the investor brings about $91,000 plus closing costs. Estimated interest-only payments over an 8-month hold total about $59,693.
If the home sells for $1,150,000, after about $80,500 in selling costs and conveyance tax, about $18,000 of purchase closing costs and $9,000 of insurance, utilities and taxes during the project, the estimated profit is about $77,807.
| Item | Amount |
|---|---|
| Purchase price | $760,000 |
| Rehab budget | $145,000 |
| Loan (90% of cost) | $814,000 |
| Estimated interest, 8 months | $59,693 |
| Selling costs (about 7%) | $80,500 |
| Purchase closing and carrying costs | $27,000 |
| After-repair value | $1,150,000 |
| Estimated profit | $77,807 |
Most flips that lose money on Maui lose it to time. Special-order materials can take weeks to arrive by barge, and good trades are booked out, especially with fire rebuild work competing for the same crews. Building permits through the county can take longer than on the mainland, and work inside the Special Management Area near the shoreline needs extra review.
Build a contingency into both cost and schedule. If your scope can stay cosmetic, with no structural, electrical service or plumbing relocation work, you may avoid the longest permit waits.
Older Maui homes often have enclosed lanais, garage bedrooms or a back unit that never went through permitting. Buyers' lenders and appraisers will notice. You can legalize the work, remove it, or price the house without it, but decide before you buy, because each choice changes your budget and resale value.
Hawaii's conveyance tax rises with price and is typically paid by the seller, so include it in exit costs. If the market softens or the house would rent well, many investors refinance into a DSCR loan and hold it as a long-term rental instead. Central Maui has steady year-round renters, and a renovated home with a legal ohana can carry a strong ratio.
Plan the exit before closing. If you may keep the home, have the work done to the standard a long-term tenant and an appraiser will expect. See /bridge-to-dscr-loan-guide.html for how that refinance works.
Prior flips help with leverage and pricing, but first-time flippers with a solid contractor and realistic budget can qualify on some programs. Expect to provide the purchase contract, scope of work and budget, contractor information, entity documents and proof of funds for your share of costs and reserves.
Resale buyers in Central Maui are often local families moving up, healthcare and airport workers, and buyers who want a home with a legal ohana for extended family or rental income. They pay for move-in condition, termite clearance and clean permits. Kitchens, baths, new windows and a refreshed lanai tend to matter more than high-end finishes that are hard to source on-island.
If the home has a legal second unit, market it clearly. A finished ohana can widen your buyer pool and support a stronger price, and it also keeps the hold-as-rental exit open.
Staging and timing matter too. Listings tend to draw more interest when the home is clean, termite-cleared and supported by a full permit file buyers' lenders can review quickly.
Pricing the listing right the first time keeps your interest clock short.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rehab budget and target resale value through the form below or call (877) 298-1001. For statewide context, see the Hawaii fix and flip page.
In as little as 10 days with a clean title report and complete file. Hawaii escrow timelines and appraisal scheduling can add time, so order early.
Some programs fund up to 100% of the rehab budget through draws, within an overall limit of up to 90% of total cost.
Not by itself. Budget for treatment and framing repair in your scope, and expect the inspector to look at it during draws.
Often, if the building meets program requirements. Read the association rules on renovations, contractors and work hours before you buy.
Interest keeps accruing, so build schedule contingency into your budget and keep scope cosmetic where you can.
Yes. Many investors refinance into a DSCR loan once the home is leased. The rent must support the new payment.
Experience improves terms, but some programs work with first-time investors who have a qualified contractor and realistic plan.
Yes. Hawaii's conveyance tax is customarily a seller cost and rises with price, so include it with commissions and escrow fees in your exit budget.
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