4121 Rice St #2708

Lihue, HI 96766

$569,000C-

2 bd · 2.0 ba · 1,050 sqft · Built 1981 · Condo · Active · 161 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,500/mo
• Mortgage (P&I): −$2,984
• Tax + insurance: −$502
• HOA: −$1,254
• Vac / Maint / Mgmt: −$1,365
• Net cashflow: $395/mo
• Annual: $4,739/yr
• Cap rate: 7.13%
• Cash-on-cash: 2.97%
• DSCR: 1.13
• 1% rule: 1.14%
• Cash to close: $159,320

Investor read

• This is a 2-bed/2.0-bath condo listed at $569k.
• At list price, monthly cash flow is $395 ($5k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $569k).
• It's been on market 161 days — a 12% lower offer ($501k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $501k (12.0% below list) — sets the bar for market timing.
• In year one you build about $61k of equity ($4k loan paydown + $57k 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-, amenities F, cost of living F.
• 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: Elsie H Wilcox Elementary School (math 39% / reading 49%, grade F, #77 of 183 statewide, top 42%, 731 students, 48% FRL); Chiefess Kamakahelei Middle School (math 29% / reading 52%, grade F, #15 of 42 statewide, top 34%, 808 students, 48% FRL); Kauai High School (math 33% / reading 64%, grade D, #13 of 43 statewide, top 33%, 1,108 students, 40% FRL).
• Market conditions: 37 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 8 sale attempts since 24y 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.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $159k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$98k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 161 days. Have you received any prior offers? Is the seller open to a 12% 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?
• 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.