1390 Kapiolani Blvd #902

Urban Honolulu, HI 96814

$459,000D

2 bd · 1.0 ba · 598 sqft · Built 2021 · Condo · Active · 107 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,696/mo
• Mortgage (P&I): −$2,407
• Tax + insurance: −$765
• HOA: −$718
• Vac / Maint / Mgmt: −$776
• Net cashflow: $-970/mo
• Annual: $-11,646/yr
• Cap rate: 3.76%
• Cash-on-cash: -9.06%
• DSCR: 0.60
• 1% rule: 0.81%
• Cash to close: $128,520

Investor read

• This is a 2-bed/1.0-bath condo listed at $459k. Condition is rated good.
• At list price, monthly cash flow is $-970 ($-12k/yr) — negative.
• To cash-flow at today's rent, offer at most $319k (30.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $370k (19.5% below list).
• It's been on market 107 days — a 9% lower offer ($418k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $319k (30.6% below list) — sets the bar for cash-flow.
• In year one you build about $12k of equity ($3k loan paydown + $9k appreciation (2.0% local appreciation)).
• Location reads: area grade D — 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).
• Market conditions: Rents rising (+3.1%/yr); 781 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 99d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 92% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• By year 3, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 3.8% 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 $3,696/mo this rent would consume 57% of the median local household income ($78k/yr) — 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 107 days. Have you received any prior offers? Is the seller open to a 31% concession, seller financing, or rate buy-down credit?
• 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?
• 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.