1031 of the Week: Westside Rent or Redevelop

There were two listings that came on the market this week in Lahaina that may be interesting to people looking to complete the second half of a 1031 exchange. The listings are neighboring duplexes with two bedrooms and one bath in each unit. While both properties offer long term rental income, they also may offer upside potential to creative buyers. The two lots are reported to be zoned A-2. Based on the zoning, the seller has created preliminary plans for 3 three 2,200 square story town homes on each lot. The architect that created the plans also indicated that up to 20 affordable units could be fit on to the two adjoining parcels. Buyers are advised to do their own due diligence on zoning and permitting with the county. The two properties are listed for $850,000 each by Brown Development Properties Hawaii LLC. This property sold. Contact The Maui Real Estate Team to help identify other potential 1031 properties.