53-464 Kamehameha Hwy #4

Punaluu, HI 96717

$450,000C+

3 bd · 1.5 ba · 1,104 sqft · Built 1976 · Condo · Active · 323 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,160/mo
• Mortgage (P&I): −$2,360
• Tax + insurance: −$1,032
• HOA: −$0
• Vac / Maint / Mgmt: −$874
• Net cashflow: $-106/mo
• Annual: $-1,270/yr
• Cap rate: 7.79%
• Cash-on-cash: 5.36%
• DSCR: 1.24
• 1% rule: 0.92%
• Cash to close: $126,000

Investor read

• This is a 3-bed/1.5-bath condo listed at $450k.
• At list price, monthly cash flow is $-106 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $431k (4.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $416k (7.6% below list).
• It's been on market 323 days — a 12% lower offer ($396k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $396k (12.0% below list) — sets the bar for market timing.
• In year one you build about $48k of equity ($3k loan paydown + $45k appreciation (10.0% local appreciation)).
• Location reads 53/100 on livability (#141 in HI) — a working-class tenant base; expect higher turnover. Strengths: crime A+, employment A; Watch: housing C-, health & safety C-, schools D-.
• Watch-outs: flood insurance adds $669/mo.
• Market conditions: 19 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 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.
• 7 sale attempts since 26y ago; this cycle's ask has dropped $50k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $245k; list at $450k implies a 84% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$77k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone VE (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.

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 323 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1976 — 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?
• 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?