1750 Kalakaua Ave #3103

Urban Honolulu, HI 96826

$80,400C-

2 bd · 2.0 ba · 1,205 sqft · Built 1978 · Condo · Active · 195 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,716/mo
• Mortgage (P&I): −$422
• Tax + insurance: −$239
• HOA: −$1,852
• Vac / Maint / Mgmt: −$780
• Net cashflow: $424/mo
• Annual: $5,085/yr
• Cap rate: 13.61%
• Cash-on-cash: 26.13%
• DSCR: 2.16
• 1% rule: 4.62%
• Cash to close: $22,512

Investor read

• This is a 2-bed/2.0-bath condo listed at $80k.
• At list price, monthly cash flow is $424 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $80k).
• It's been on market 195 days — a 12% lower offer ($71k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $71k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-1.0%/yr); year-one equity from $556 of loan paydown is wiped out by about $807 of value loss. Plan a longer hold.
• Location reads: area grade C — affects rentability + tenant quality, not the cash-flow math above.
• Watch-outs: flood insurance adds $66/mo; HOA is 50% of rent.
• Market conditions: Rents rising (+3.5%/yr); 160 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• 3 sale attempts since 10y ago; this cycle's ask has dropped $40k (33%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-1.0% appreciation + 3.5% rent growth), your $23k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 13.6% 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 $3,716/mo this rent would consume 65% of the median local household income ($68k/yr) (locally 2466% 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 195 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's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.