729 Kinau St

Urban Honolulu, HI 96813

$2,375,000B-

10 bd · 2.0 ba · 3,648 sqft · Built 1948 · MultiFamily · Active · 47 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $81,041/mo
• Mortgage (P&I): −$12,455
• Tax + insurance: −$2,936
• HOA: −$0
• Vac / Maint / Mgmt: −$17,019
• Net cashflow: $48,631/mo
• Annual: $583,577/yr
• Cap rate: 30.86%
• Cash-on-cash: 87.76%
• DSCR: 4.90
• 1% rule: 3.41%
• Cash to close: $665,000

Investor read

• This is a 10-bed/2.0-bath multifamily listed at $2.38M.
• At list price, monthly cash flow is $49k ($584k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($81k rent vs $2.38M).
• It's been on market 47 days — a 3% lower offer ($2.30M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $2.30M (3.0% below list) — sets the bar for market timing.
• Local home prices are declining (-0.7%/yr); year-one equity from $16k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Location reads: area grade B — 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.
• Watch-outs: built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents flat; 198 active listings in the ZIP; 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.
• 11 sale attempts since 22y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $800k; list at $2.38M implies a 197% gain — meaningful room to come down on a strong offer.
• At projected returns (-0.7% appreciation + 0.6% rent growth), your $665k cash investment doubles in ~2 years — after that, you're playing with house money.
• Cap rate 30.9% 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 $81,041/mo this rent would consume 1061% of the median local household income ($92k/yr) (locally 1338% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 47 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1948 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.