Hawaii situation guide · Updated November 2026

Wholesaling Condemned Houses in Hawaii

Wholesaling condemned houses in Hawaii means getting an unsafe or officially restricted home under contract, such as an older Hilo house that the county has posted, and assigning the deal to a buyer who can repair or demolish it. Price depends on the county’s order, so confirm the record before you commit.

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The short answer

Can you wholesale a condemned house in Hawaii?

Yes, you can contract to buy a condemned house in Hawaii and assign that contract, provided you confirm the county order, disclose it to your buyer and respect the broker-license limits. Hawaii has no wholesaler-specific statute that we found. Check current text and ask a Hawaii attorney how your role is treated.

Condemned can mean different things. A house might be posted as unsafe, have utilities cut off or be barred from occupancy until repairs are made. The specifics come from the county order, so read it. Our condemned house guide explains the common outcomes.

The order drives your price. If the house can be repaired and cleared for use, the buyer pays for the work and approvals. If it must come down, the buyer is paying for demolition and a rebuild. Compare both paths with our repair cost guide before you send an offer.

Condemned Houses in Hawaii at a glance

Typical Hilo causes	Water damage, rot, fire or long vacancy
Key document	The county order or posting notice
Main choice	Repair and clear the order, or demolish
Title check	Fee simple versus leasehold, and any liens
Foreclosure link	Cure deadline of at least 60 days in a power-of-sale notice
Insurance	Vacant and unsafe homes can be hard to cover

The opportunity

Why condemned houses create deals in Hilo

Hawaii County has older homes that have been through years of rain, lava-zone concerns and absent owners. When a house is posted, ordinary buyers and lenders usually back away, so the pool of bidders shrinks to people who understand the risk. That leaves room for a wholesaler who can read the order and explain the path to a buyer, and for the owner, it means a cash exit from a property that costs money every month.

Heirs with no plan

Families who inherit a posted house often have no money or time to fix it.

Owners facing fines

A cash sale can end a stream of notices and carrying costs.

Lot value

A buyer may want the land even when the structure has little value.

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Lead sources

Where to find condemned house leads in Hilo

Posted notices. Drive through Hilo town and Keaukaha looking for orange or red postings. Our driving for dollars guide helps.
County records. Ask the county for lists of unsafe structure cases. Then follow up with skip tracing for owners who live away.
Estates and heirs. See the heirs’ property guide if several relatives share ownership.
Insurance trouble. Owners who cannot insure a damaged vacant house may be glad to sell.
Demolition contractors. Crews often know which owners are ready to give up the structure.

Your exit

Who buys condemned houses in Hawaii

Builders and experienced rehabbers buy these homes, along with investors who want the land. Some buyers plan to demolish and start over, so they care more about zoning, utilities and soil than about the old structure.

Give them the order, photos, any survey and a clear note about the unknowns. They will also want to see whether the lot is fee simple, so run a title search early and share what you find. Our buy box guide helps you match a house to a buyer.

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Step by step

How to start wholesaling condemned houses in Hawaii

Get the order. Obtain the county notice and note the issuing office.
Confirm what it requires. Ask whether the house can be repaired, what approvals are needed and whether fines are running.
Run two scenarios. Price repair and demolition using the ARV calculator and our repair guide.
Set your offer. Test it in the MAO calculator with a safety margin.
Order a title review. Check liens, leasehold terms and ownership with title insurance for investors in mind.
Protect yourself. Use a due diligence period and a right to cancel. See the inspection contingency guide.
Close and disclose. Share the order with your buyer in writing, then close through an investor-friendly title company.

Your checklist for wholesaling Condemned Houses in Hawaii

Read the full county order before you set any price.
Price both repair and demolition.
Check title for liens and leasehold terms.
Confirm insurance is available for a vacant unsafe house.
Disclose the order to your buyer in writing.

A Hawaii example: a posted house near Keaukaha

Seller price	$150,000
Demolition and debris	$45,000
Lot value after clearing	$300,000
Buyer costs and margin	$85,000
Assignment fee	$9,000
Closing	About seven weeks

This is a worked example, not market data. A Hilo owner near Keaukaha lived on the mainland and had a storm-worn house posted as unsafe by the county. The owner kept receiving letters and could not travel to fix it.

You read the order, confirmed the fee simple title and agreed to $150,000 with a 30-day review period. A demolition contractor estimated $45,000 for removal and debris, and the cleared lot looked worth about $300,000.

A local builder took the contract, paid a $9,000 assignment fee and closed in about seven weeks. The owner stopped paying for a house nobody could use, and the buyer received the order before signing.

Hawaii rules to know

Broker rules, mortgage timing and title checks

HRS 467-1 defines a broker to include a person who accepts and sells an option on real estate without exercising it, for the purpose or as a means of evading licensing. Assignment deals can raise that question, so read the section, check current text and consult a Hawaii attorney. We found no Real Estate Commission guidance on wholesaling.

If the owner is behind on the mortgage, HRS chapter 667 allows judicial foreclosure and nonjudicial power of sale, and a power-of-sale notice under 667-22 must allow at least 60 days to cure. Also confirm leasehold terms, since the lease and lessor can limit value. The seller generally pays conveyance tax under chapter 247. See our redemption period guide for timing basics.

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Read the order before you bid

Condemned deals fail when buyers misunderstand the order. Mentorship students send us the notice and we help them match the right buyer to the right plan.

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FAQ

Condemned Houses in Hawaii: common questions

Is wholesaling condemned houses in Hawaii legal?

No wholesaler-specific Hawaii statute was found, but broker-license rules can still apply, including HRS 467-1 on selling options to evade licensing. Check current text and ask a Hawaii attorney or the Real Estate Commission before you assign a contract to any buyer.

What does condemned mean in Hawaii?

It usually means a county or other authority has found a structure unsafe and restricted its use. The exact order and remedy vary by county and case. Always read the notice itself, and confirm with the issuing office what must happen to clear it and by what date.

Can a condemned house be repaired?

Sometimes, if the county approves a plan and the work is permitted and inspected, but it is not guaranteed. Some structures must come down. Price both repair and demolition, and make your buyer aware that approvals take time and can change the budget.

Does a condemned house affect financing and insurance?

Often, yes. Lenders and insurers may decline unsafe or vacant homes, which is why most buyers pay cash. Ask your title company and an insurance agent early, and see our vacant property insurance guide before you promise a buyer a closing date.

Do I need to check for leasehold?

Yes. Hawaii has leasehold homes, and the lease terms, remaining years and lessor consent can change value and what a buyer can do. Have a title company or attorney read the lease before you commit to a price or promise a buyer anything.