633 Nalanui St #215

Urban Honolulu, HI 96817

$300,000D

2 bd · 1.0 ba · 646 sqft · Built 1975 · Condo · Active · 367 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,865/mo
• Mortgage (P&I): −$1,573
• Tax + insurance: −$225
• HOA: −$960
• Vac / Maint / Mgmt: −$602
• Net cashflow: $-495/mo
• Annual: $-5,946/yr
• Cap rate: 4.31%
• Cash-on-cash: -7.08%
• DSCR: 0.69
• 1% rule: 0.95%
• Cash to close: $84,000

Investor read

• This is a 2-bed/1.0-bath condo listed at $300k.
• At list price, monthly cash flow is $-495 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $212k (29.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $286k (4.5% below list).
• It's been on market 367 days — a 12% lower offer ($264k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $212k (29.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• 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: Lanakila Elementary School (math 39% / reading 45%, grade F, #81 of 183 statewide, top 46%, 325 students, 63% FRL); Prince David Kawananakoa Middle School (math 30% / reading 56%, grade D-, #11 of 42 statewide, top 24%, 589 students, 52% FRL); President William Mckinley High School (math 28% / reading 69%, grade D, #13 of 43 statewide, top 33%, 1,502 students, 50% FRL) — zoned schools average 55% FRL vs 39% district-wide (16 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: HOA is 34% of rent.
• Market conditions: Rents rising fast (+10.3%/yr); 110 active listings in the ZIP; 18 comparable units currently listed for rent nearby; rentals at typical pace (median 25d 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.
• Current owner paid $47k; list at $300k implies a 538% gain — meaningful room to come down on a strong offer.
• Cap rate 4.3% 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 $2,865/mo this rent would consume 46% of the median local household income ($75k/yr) (locally 2290% 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 367 days. Have you received any prior offers? Is the seller open to a 29% concession, seller financing, or rate buy-down credit?
• Built in 1975 — 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?