3455A Wela St

Urban Honolulu, HI 96815

$1,300,000D

4 bd · 3.0 ba · 2,348 sqft · Built 1950 · SingleFamily · Active · 216 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $7,582/mo
• Mortgage (P&I): −$6,817
• Tax + insurance: −$1,065
• HOA: −$0
• Vac / Maint / Mgmt: −$1,592
• Net cashflow: $-1,893/mo
• Annual: $-22,712/yr
• Cap rate: 4.55%
• Cash-on-cash: -6.24%
• DSCR: 0.72
• 1% rule: 0.58%
• Cash to close: $364,000

Investor read

• This is a 4-bed/3.0-bath single-family listed at $1.30M.
• At list price, monthly cash flow is $-2k ($-23k/yr) — negative.
• To cash-flow at today's rent, offer at most $966k (25.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $758k (41.7% below list).
• It's been on market 216 days — a 12% lower offer ($1.14M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $758k (41.7% below list) — sets the bar for 1% rule.
• In year one you build about $45k of equity ($9k loan paydown + $36k appreciation (2.7% 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: Waikiki Elementary School (math 67% / reading 79%, grade A, #8 of 183 statewide, top 4%, 554 students, 22% FRL); Kaimuki Middle School (math 62% / reading 76%, grade A, #1 of 42 statewide, top 0%, 950 students, 24% FRL); Kalani High School (math 38% / reading 73%, grade C, #5 of 43 statewide, top 10%, 1,414 students, 17% FRL) — zoned schools average 21% FRL vs 39% district-wide (18 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 66% at this address vs 41% district-wide (+25 pts) — the actual schools serving this property are materially stronger than the Hawaii Department Of Education average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+6.0%/yr); 813 active listings in the ZIP; 18 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 56% 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.
• 2 sale attempts; this cycle's ask has dropped $150k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$73k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 4.5% 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 $7,582/mo this rent would consume 118% of the median local household income ($77k/yr) (locally 2422% 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 216 days. Have you received any prior offers? Is the seller open to a 42% concession, seller financing, or rate buy-down credit?
• Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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.