3770 Alaoli Way Unit 2302-H

Lihue, HI 96766

$475,000D

3 bd · 3.5 ba · 2,026 sqft · Built 2018 · Condo · Active · 229 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,977/mo
• Mortgage (P&I): −$2,491
• Tax + insurance: −$792
• HOA: −$2,142
• Vac / Maint / Mgmt: −$1,045
• Net cashflow: $-1,493/mo
• Annual: $-17,911/yr
• Cap rate: 2.52%
• Cash-on-cash: -13.47%
• DSCR: 0.40
• 1% rule: 1.05%
• Cash to close: $133,000

Investor read

• This is a 3-bed/3.5-bath condo listed at $475k. Condition is rated excellent.
• At list price, monthly cash flow is $-1k ($-18k/yr) — negative.
• To cash-flow at today's rent, offer at most $259k (45.5% below list).
• Meets the 1% rule at list price ($5k rent vs $475k).
• It's been on market 229 days — a 12% lower offer ($418k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $259k (45.5% below list) — sets the bar for cash-flow.
• In year one you build about $51k of equity ($3k loan paydown + $48k appreciation (10.0% local appreciation)).
• Location reads 65/100 on livability (#53 in HI) — a middle-class / working-renter tenant base. Strengths: employment A+, commute A, crime A-; Watch: health & safety C-, schools D+, amenities F.
• Watch-outs: HOA is 43% of rent.
• Market conditions: 37 active listings in the ZIP; 141 units permitted in Kauai County in 2024 (0 in 5+ unit buildings).
• Kauai County population projected at +27% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts since 3y ago; this cycle's ask has dropped $50k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$82k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 229 days. Have you received any prior offers? Is the seller open to a 45% 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.
• 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?