190 Hauoli St #220

Maalaea, HI 96793-9535

$55,000C-

1 bd · 1.0 ba · 558 sqft · Built 1978 · Condo · Active · 324 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,625/mo
• Mortgage (P&I): −$288
• Tax + insurance: −$92
• HOA: −$680
• Vac / Maint / Mgmt: −$551
• Net cashflow: $1,014/mo
• Annual: $12,164/yr
• Cap rate: 28.41%
• Cash-on-cash: 78.98%
• DSCR: 4.51
• 1% rule: 4.77%
• Cash to close: $15,400

Investor read

• This is a 1-bed/1.0-bath condo listed at $55k.
• At list price, monthly cash flow is $1k ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($3k rent vs $55k).
• It's been on market 324 days — a 12% lower offer ($48k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $48k (12.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($380 loan paydown + $2k appreciation (3.0% local appreciation)).
• Location reads 58/100 on livability (#111 in HI) — a working-class tenant base; expect higher turnover. Strengths: crime A, employment A; Watch: health & safety C-, amenities F, commute F.
• Zoned schools: Puu Kukui Elementary School (math 39% / reading 56%, grade D, #60 of 183 statewide, top 34%, 696 students, 33% FRL); Maui Waena Intermediate School (math 24% / reading 49%, grade F, #19 of 42 statewide, top 46%, 1,044 students, 45% FRL); Maui High School (math 24% / reading 75%, grade D+, #11 of 43 statewide, top 24%, 1,999 students, 36% FRL).
• Watch-outs: HOA is 26% of rent.
• Market conditions: 2 comparable units currently listed for rent nearby; 906 units permitted in Maui County in 2024 (289 in 5+ unit buildings).
• Maui County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 6 sale attempts since 4y ago; this cycle's ask has dropped $4k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $15k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• It's been on market 324 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1978 — 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.
• 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.