Would a very well kept home and detached cottage on over 5 acres with an unobstructed ocean view that is currently zoned for short term rentals appeal to you? Would you like to have a compound including the bed and breakfast business, a cottage, and the potential for an adjacent main house to live in with another cottage? Our listing at 160 Nahele Rd. in Haiku is a legal Bed and Breakfast offering all of this and much more. Often times, it’s best to let the images do the talking.
160 Nahele Rd. (MLS# 351605) is a 4 bed/3 bath home of almost 2,500 sq.ft. of interior living area plus large outdoor decks combined with a 2 bed/2 bath cottage of almost 1,000 sq.ft. of interior living area and about half that area in outdoor decking as well. All of this sits on a beautifully maintained 5.2 acre lot that has a large variety of palms and flowers which are mature and add up to considerable value in many ways.
Two Separate Parcels for Sale
What is being sold is two parcels of land. One is approximately 4.2 acres and the other 0.68 acres. Why is this important? This would allow a buyer to build another house and cottage and still keep the B & B operation going on the adjacent parcel in the compound. The county of Maui allows a lot line adjustment to re-configure the boundaries of existing lots without having to go through the whole subdivision process. You could have the main house and cottage that presently operate as the B & B on one 3 acre lot, and your main house and additional cottage on the adjacent 2 acre lot. You can keep the income from B & B and share the whole property as a compound.
Literally and Figuratively: We are Selling the Farm
Included in the price of this property are the furnishings including the art (a few sentimental exceptions), linens, kitchenware and appliances, all garden tools and supplies, outdoor furniture, tractor with attachments that include a chipper, bucket, 15″ auger, ripper bar, and finish mower. There is a riding mower, many power and hand tools, and a radial arm saw.
Enjoy the beautiful surroundings with hundreds of palms in the ground that are perfect for Montessori, Waldorf, Seabury Hall, or college tuition
Money Does Grow on Trees
Included in the sale is the entire inventory of field stock palms that you can see in our photos and many other potted palms. Over a 1,000 trees in total comprise the existing farm and farm plan. Why is this important?
In March 2012, eight coconut palms were sold were priced at $3,150 and were based on $35 per trunk foot. The Areca palms were estimated by Chris Hart, local landscape architect, to be currently worth $150 each. Presently, the inventory in the ground is valued by local landscapers, who actually buy the trees, to be in excess of $100,000 (inventory available).
My personal experience with growing and selling palms started when I was 10 years old and my father insisted on planting 400 coconut palms to help pay for college. My two sisters, Brianna and Chloe, and I worked for years cleaning palms fronds and coconuts, but eventually it paid off as my father, Tracy, earned more than $50,000 selling the palms to help pay for our education. As soon as the trees are harvested, you just re-plant like any other crop.
The farm has big value both as a crop and there are also many tax advantages in being a registered farm, allowing equipment depreciation, capitalization value of the crop in the property acquisition, and allocation of part of the property expenses to the farm.
Renewal of Bed and Breakfast License Equals Income
Although not outright transferable to a new buyer, the Bed and Breakfast has a long history with the County of Maui and just received a 5 year renewal for the permit in April 2012. A vehicle is available to a potential buyer to assist in the transfer of the license via an existing agreement with the current caretakers who live on premises and manage the entire operation. The attorney who assisted the present owners with the renewal of the permit has expressed confidence that the transfer is possible. Some figures to consider :
- Total Income 2011 = $145,567
- Total expenses for B&B = $63,071
- Gross Profit from Operations = $82,496
- Homeowners Insurance = $2,889
- Property Tax = $3,686
Be sure to read some of the impassioned testimonials from 50+ of the guests who have stayed at this property in our original blog post, 5 Acre Ocean View Haiku Bed and Breakfast for Sale.
The private and quiet surroundings poolside at Nahele are quite the contrast to anything you would experience at any of Maui’s resorts wouldn’t you agree?
Price Reduction: Was Listed at $1,750,000 now at $1,650,000
The Hawaii Life Value Score system previously had 160 Nahele Rd. scored as a 98 out of a possible 100 at the original price and I would imagine that this number may even go up now after this reduction. Ask for our comprehensive current market analysis on this property that we prepared demonstrated the value of this property.
The Stice Team is here to assist you in anyway that we can. Aloha.
Jeremy Stice, R(S)