68-101 Waialua Beach Rd #103

Mokuleia, HI 96791

$359,000D

2 bd · 1.0 ba · 600 sqft · Built 1975 · Condo · Active · 107 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,850/mo
• Mortgage (P&I): −$1,883
• Tax + insurance: −$230
• HOA: −$668
• Vac / Maint / Mgmt: −$598
• Net cashflow: $-529/mo
• Annual: $-6,346/yr
• Cap rate: 4.53%
• Cash-on-cash: -6.31%
• DSCR: 0.72
• 1% rule: 0.79%
• Cash to close: $100,520

Investor read

• This is a 2-bed/1.0-bath condo listed at $359k.
• At list price, monthly cash flow is $-529 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $266k (26.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $285k (20.6% below list).
• It's been on market 107 days — a 9% lower offer ($327k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $266k (26.0% below list) — sets the bar for cash-flow.
• In year one you build about $18k of equity ($2k loan paydown + $16k appreciation (4.3% local appreciation)).
• Location reads 58/100 on livability (#112 in HI) — a working-class tenant base; expect higher turnover. Strengths: crime A+, employment A+; Watch: health & safety C-, amenities F, commute 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: Waialua Elementary School (math 59% / reading 65%, grade B, #26 of 183 statewide, top 14%, 442 students, 46% FRL); Waialua High & Intermediate School (math 30% / reading 61%, grade D-, #19 of 43 statewide, top 43%, 621 students, 43% FRL).
• Zoned-school proficiency averages 54% at this address vs 41% district-wide (+13 pts) — the actual schools serving this property are materially stronger than the Hawaii Department Of Education average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: HOA is 23% of rent.
• Market conditions: 71 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 26d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• Current owner paid $135k; list at $359k implies a 166% gain — meaningful room to come down on a strong offer.
• By year 3, paydown + projected appreciation supports a ~$45k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• This rent runs 35% of the median local income ($97k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 107 days. Have you received any prior offers? Is the seller open to a 26% concession, seller financing, or rate buy-down credit?
• Built in 1975 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• 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?