Equity Cash-Out Loan for Short-Term Rental in Kapaa, Kauai

Myers Capital Hawaii, a residential and commercial mortgage banking company and direct private lender, partnered with its affiliate, Koa Mortgage Fund, to fund a $125,000 equity cash-out bridge loan on a condotel in Kapaa, a popular vacation area on the island of Kauai, HI. The loan features a conservative 28.09% loan-to-value (LTV) based on an appraised property value of $445,000. The Borrower was previously denied financing by another lender because the short-term rental did not meet kitchen requirements due to the lack of a built-in burner. We provided a creative financing solution that allowed the transaction to move forward. The Borrower will use cash-out proceeds to install a stovetop and repair the AC system to improve rental potential, with additional funds allocated to renovate another investment property in the Pacific Northwest. The subject property was in good condition. It is approximately 372 square feet set in a 55-acre lot. The Borrower had good credit. They plan to refinance as an exit strategy. This 12-month bridge loan carries a 14% interest rate. This private money loan was funded in August 2025.