1314 Victoria St #801

Urban Honolulu, HI 96814

$489,000F

2 bd · 2.0 ba · 1,007 sqft · Built 1971 · Condo · Active · 209 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,825/mo
• Mortgage (P&I): −$2,564
• Tax + insurance: −$326
• HOA: −$900
• Vac / Maint / Mgmt: −$803
• Net cashflow: $-769/mo
• Annual: $-9,223/yr
• Cap rate: 4.41%
• Cash-on-cash: -6.74%
• DSCR: 0.70
• 1% rule: 0.78%
• Cash to close: $136,920

Investor read

• This is a 2-bed/2.0-bath condo listed at $489k.
• At list price, monthly cash flow is $-769 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $353k (27.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $383k (21.8% below list).
• It's been on market 209 days — a 12% lower offer ($430k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $353k (27.8% below list) — sets the bar for cash-flow.
• In year one you build about $13k of equity ($3k loan paydown + $10k appreciation (2.0% local appreciation)).
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• Hawaii Department Of Education (suburban): math 32% / reading 50% proficiency, ranked #1 of 1 in HI (top 100%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Queen Kaahumanu Elementary School (math 27% / reading 43%, grade F, #107 of 183 statewide, top 58%, 430 students, 63% FRL); Robert Louis Stevenson Middle School (math 30% / reading 57%, grade D, #10 of 42 statewide, top 22%, 576 students, 43% FRL); President William Mckinley High School (math 28% / reading 69%, grade D, #13 of 43 statewide, top 33%, 1,502 students, 50% FRL).
• Watch-outs: HOA is 24% of rent.
• Market conditions: Rents rising (+3.1%/yr); 561 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 19d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 1,638 units permitted in Honolulu County in 2024 (793 in 5+ unit buildings).
• Honolulu County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts since 3y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $285k; list at $489k implies a 72% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.4% vs local median 1.5% in Urban Honolulu — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• At $3,825/mo this rent would consume 59% of the median local household income ($78k/yr) (locally 1641% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 209 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• Built in 1971 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?