98-142 Lipoa Pl #109

Waimalu, HI 96701

$249,000D

1 bd · 1.0 ba · 506 sqft · Built 1966 · Condo · Active · 87 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,226/mo
• Mortgage (P&I): −$1,306
• Tax + insurance: −$165
• HOA: −$533
• Vac / Maint / Mgmt: −$467
• Net cashflow: $-245/mo
• Annual: $-2,942/yr
• Cap rate: 5.11%
• Cash-on-cash: -4.22%
• DSCR: 0.81
• 1% rule: 0.89%
• Cash to close: $69,720

Investor read

• This is a 1-bed/1.0-bath condo listed at $249k.
• At list price, monthly cash flow is $-245 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $206k (17.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $223k (10.6% below list).
• It's been on market 87 days — a 6% lower offer ($234k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $206k (17.4% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 76/100 on livability (#11 in HI, #3,359 nationally) — a middle-class / working-renter tenant base. Strengths: employment A+, health & safety A+, commute B+; Watch: amenities D, 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: Alvah A Scott Elementary School (math 37% / reading 41%, grade F, #94 of 183 statewide, top 52%, 412 students, 55% FRL); Aiea Intermediate School (math 42% / reading 57%, grade C, #8 of 42 statewide, top 17%, 468 students, 58% FRL); Aiea High School (math 22% / reading 57%, grade F, #26 of 43 statewide, top 64%, 995 students, 50% FRL) — zoned schools average 54% FRL vs 39% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Watch-outs: HOA is 24% of rent.
• Market conditions: Rents rising fast (+6.2%/yr); 95 active listings in the ZIP; 16 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 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.
• 2 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.
• Current owner paid $65k; list at $249k implies a 283% gain — meaningful room to come down on a strong offer.
• Cap rate 5.1% vs local median 1.8% in Waimalu — 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.

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 87 days. Have you received any prior offers? Is the seller open to a 17% concession, seller financing, or rate buy-down credit?
• Built in 1966 — 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.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?