16-1078 IO Kea Rd

Hawaiian Acres, HI 96760

$295,000D

4 bd · 2.0 ba · 1,456 sqft · Built 1990 · SingleFamily · Active · 55 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,975/mo
• Mortgage (P&I): −$1,547
• Tax + insurance: −$558
• HOA: −$0
• Vac / Maint / Mgmt: −$415
• Net cashflow: $-545/mo
• Annual: $-6,540/yr
• Cap rate: 4.35%
• Cash-on-cash: -6.95%
• DSCR: 0.69
• 1% rule: 0.67%
• Cash to close: $82,600

Investor read

• This is a 4-bed/2.0-bath single-family listed at $295k.
• At list price, monthly cash flow is $-545 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $216k (26.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $197k (33.1% below list).
• It's been on market 55 days — a 3% lower offer ($286k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $197k (33.1% below list) — sets the bar for 1% rule.
• In year one you build about $11k of equity ($2k loan paydown + $9k appreciation (3.1% local appreciation)).
• Location reads 56/100 on livability (#123 in HI) — a working-class tenant base; expect higher turnover. Strengths: crime A, housing B; Watch: health & safety C-, amenities F, commute F.
• 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: Mountain View Elementary School (math 9% / reading 16%, grade F, #175 of 183 statewide, top 96%, 493 students, 78% FRL); Keaau Middle School (math 11% / reading 31%, grade F, #37 of 42 statewide, top 88%, 749 students, 76% FRL); Keaau High School (math 17% / reading 47%, grade F, #34 of 43 statewide, top 79%, 1,046 students, 73% FRL) — zoned schools average 76% FRL vs 39% district-wide (37 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 22% at this address vs 41% district-wide (-19 pts) — the specific schools serving this property underperform the Hawaii Department Of Education average; the district grade overstates school quality for this exact location.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: 95 active listings in the ZIP; 982 units permitted in Hawaii County in 2024 (0 in 5+ unit buildings).
• Hawaii County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 4, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.

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 55 days. Have you received any prior offers? Is the seller open to a 33% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.