74-5618 Palani Rd Unit M6 · Kailua, HI 96740

$139,500

1 bd · 1.0 ba · 535 sqft · Condo public records · 21 Days on market

Built 1969 $625/mo HOA · 29% of rent

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Why this score? — see what drove the C grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +19.8/30.0
• 1% rule +10.0/10.0
• ARV discount +7.5/15.0
• DSCR +6.3/10.0
• Livability +4.2/5.0
• Schools +3.7/10.0
• Rent growth +3.1/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

This is a leasehold property. Located top floor towards the far corner of property. Great location within walking distance to the ocean and Kona events, shopping, dining and activities. Perfect for a primary residence or investment property. Zoned for vacation rental, no STVR license on this unit. Short term rentals, long term rentals and pets are allowed at Kona Kai. The leasehold payments are shown monthly at $308 and are paid every 6 months. The $508 AOAO dues are paid monthly to Associa the management company. Fees include pool and common area maintenance, exterior maintenance, landscaping, common area insurance, rubbish removal, gas for cooking and hot water, water eaters, and quarterly pest control. Offers must be Cash due tot he leasehold status.

Key facts

• Large closet
• Exquisite remodel
• Bamboo floors

Tags

• PRIME LOCATION
• EXQUISITE REMODEL
• BAMBOO FLOORS
• DESIGNER FIXTURES
• LARGE CLOSET
• FULLY EQUIPPED KITCHEN

Property features AI

Finance

• Financial info: Property used as a short-term vacation rental
• HOA & community: Association fee: $625.09; Special assessment in place ($240)

Exterior

• Parking: Assigned parking
• Utilities: Electricity available; Sewer connected; Solid waste disposal included with maintenance fees
• Home design: Attached property; CPR ownership
• Exterior features: Leasehold land tenure; Lava zone 4; Zoned CV-10; Road access: County

Interior

• Kitchen: Microwave; Range; Refrigerator
• Flooring: Carpet; Hardwood
• Bathrooms: 1 bathroom (1 full)
• Interior features: Carpet and hardwood flooring

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath condo listed at $140k.

Deal economics

• At list price, monthly cash flow is $167 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $140k).
• Recommended offer: $137k (1.5% below list) — sets the bar for market timing.
• Cap rate 7.7% vs local median 1.6% in Kailua — 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.

Location & tenants

• Location reads 83/100 on livability (#2 in HI, #906 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, commute A+; Watch: 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.
• Market conditions: Rents rising (+2.5%/yr); 407 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 21d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 982 units permitted in Hawaii County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $964 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Hawaii County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 21 days — a 2% lower offer ($137k) is reasonable based on typical stale-listing flexibility.
• 4 sale attempts since 9y ago; this cycle's ask has dropped $10k (7%) from the opening price — seller is motivated, your offer sets the floor, not the list.

Risks & watch-outs

• Watch-outs: HOA is 29% of rent.

Recommended offer $137,407 (1.5% below list)

Questions for the listing agent

1. Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
3. 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?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are A-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?
6. 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.
7. 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.
8. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.56% ✓
• Cap rate: 7.73%
• Cash-on-cash: 5.13%
• DSCR: 1.23
• GRM: 5.3

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 2.53% rent growth · sell at horizon

5-year hold

• IRR: -8.8%
• Equity multiple: 0.68×
• Total profit: $-12,609
• Equity at exit: $20,800

10-year hold

• IRR: 0.1%
• Equity multiple: 1.00×
• Total profit: $142
• Equity at exit: $12,061

Cash invested: $39,060 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 37 Tenant-Leaning
• State Hawaii: 37 Tenant-Leaning · D+13
• County: — inherits STATE
• City: — inherits STATE

Honolulu has source-of-income protections; warranty of habitability strong.

Methodology + full state rankings →

ZIP-level market 96740

• Rents YoY: 2.5%
• Active inventory: 407
• Price-to-rent: 5.3×

Monthly cashflow live

• Estimated rent: $2,177 high
• Mortgage (P&I): −$732
• Tax from tax record: −$138 /mo · $1,656/yr
• Insurance: −$58
• HOA: −$625
• Vacancy / Maint / Mgmt: −$457
• Net cashflow: $167

Break-even live

Break-even rent $1,965

Max offer price $139,500

Occupancy floor 87%

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $34,875
• Closing costs: $4,185
• Reserves months: —
• Total cash needed: —

Rent comps 5 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
75-5730 Alahou St Unit 01 Kailua-Kona, HI	1.0	1.0	433	$1,975	$4.56	43d	1	0.49mi
75-5730 Alahou St Unit 15 Kailua-Kona, HI	1.0	1.0	433	$1,975	$4.56	23d	1	0.49mi
75-5730 Alahou St Unit 03 Kailua-Kona, HI	1.0	1.0	433	$2,000	$4.62	17d	1	0.49mi
75-5776 Kuakini Hwy #203 Kailua-Kona, HI	1.0	1.0	372	$2,100	$5.65	21d	1	0.66mi
75-228 Aloha Kona Dr Unit Hale Kailua-Kona, HI	—	1.0	607	$2,350	$3.87	3d	1	0.95mi

HOA detail condo

• Monthly dues: $625 · $7,500/yr
• Likely covers: watergaslandscapingexterior maint.pool
• Assessments: None detected in remarks — confirm with the listing agent.

Listing history 33 events

1. 2026-06-18
   days on market $139,500 Active 21 DOM
2. 2026-06-17
   pricedays on market $139,500 Active 20 DOM
3. 2026-06-16
   days on market $149,500 Active 19 DOM
4. 2026-06-15
   days on market $149,500 Active 18 DOM
5. 2026-06-13
   days on market $149,500 Active 16 DOM
6. 2026-06-13
   days on market $149,500 Active 15 DOM
7. 2026-06-10
   days on market $149,500 Active 13 DOM
8. 2026-06-09
   days on market $149,500 Active 12 DOM
9. 2026-06-08
   days on market $149,500 Active 11 DOM
10. 2026-06-07
    days on market $149,500 Active 10 DOM
11. 2026-06-05
    days on market $149,500 Active 7 DOM
12. 2026-06-03
    days on market $149,500 Active 6 DOM
13. 2026-06-02
    days on market $149,500 Active 5 DOM
14. 2026-06-01
    days on market $149,500 Active 4 DOM
15. 2026-05-31
    days on market $149,500 Active 3 DOM
16. 2026-05-28
    listed $149,500 Active
17. 2025-08-13
    historical
18. 2024-08-11
    listed $179,500 Active
19. 2022-07-07
    soldstatus $125,000 Sold 763-char remark

    Show marketing remark (763 chars)

    This is a leasehold property. Located top floor towards the far corner of property. Great location within walking distance to the ocean and Kona events, shopping, dining and activities. Perfect for a primary residence or investment property. Zoned for vacation rental, no STVR license on this unit. Short term rentals, long term rentals and pets are allowed at Kona Kai. The leasehold payments are shown monthly at $308 and are paid every 6 months. The $508 AOAO dues are paid monthly to Associa the management company. Fees include pool and common area maintenance, exterior maintenance, landscaping, common area insurance, rubbish removal, gas for cooking and hot water, water eaters, and quarterly pest control. Offers must be Cash due tot he leasehold status.

20. 2022-05-23
    historical Contingent 763-char remark

    Show marketing remark (763 chars)

    This is a leasehold property. Located top floor towards the far corner of property. Great location within walking distance to the ocean and Kona events, shopping, dining and activities. Perfect for a primary residence or investment property. Zoned for vacation rental, no STVR license on this unit. Short term rentals, long term rentals and pets are allowed at Kona Kai. The leasehold payments are shown monthly at $308 and are paid every 6 months. The $508 AOAO dues are paid monthly to Associa the management company. Fees include pool and common area maintenance, exterior maintenance, landscaping, common area insurance, rubbish removal, gas for cooking and hot water, water eaters, and quarterly pest control. Offers must be Cash due tot he leasehold status.

21. 2022-05-18
    listed $130,000 Active 763-char remark

    Show marketing remark (763 chars)

    This is a leasehold property. Located top floor towards the far corner of property. Great location within walking distance to the ocean and Kona events, shopping, dining and activities. Perfect for a primary residence or investment property. Zoned for vacation rental, no STVR license on this unit. Short term rentals, long term rentals and pets are allowed at Kona Kai. The leasehold payments are shown monthly at $308 and are paid every 6 months. The $508 AOAO dues are paid monthly to Associa the management company. Fees include pool and common area maintenance, exterior maintenance, landscaping, common area insurance, rubbish removal, gas for cooking and hot water, water eaters, and quarterly pest control. Offers must be Cash due tot he leasehold status.

22. 2017-03-15
    soldstatus $42,000 Sold
23. 2017-03-04
    status Under Contract
24. 2017-03-01
    price $44,000
25. 2017-03-01
    listed $42,000 Active
26. 2002-08-21
    soldstatus $1,457,000
27. 1990-06-29
    soldstatus $843,500
28. 1988-12-29
    soldstatus $1,002,000
29. 1988-06-30
    soldstatus $700,000
30. 1988-06-01
    soldstatus $700,000
31. 1984-09-01
    soldstatus $30,000
32. 1980-10-01
    soldstatus $71,200
33. 1980-04-01
    soldstatus $10,600

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast HI · Partial reset (capped growth)

• Current annual tax: $1,656 · $138/mo
• Projected year-2 tax: $1,656 · $138/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🫁 Air quality 1/10 Low

Taxation est. · year 1

• Rental income: $26,119
• − Mortgage interest: −$7,814
• − Property taxes: −$1,656
• − Insurance: −$698
• − Repairs & maintenance: −$2,090
• − Management: −$2,090
• − HOA: −$7,500
• − Depreciation: −$4,058
• Taxable income: $214
• Est. tax owed @ 24.0%: −$51
• After-tax cash flow: $1,951/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Hawaii Department Of Education
• NCES district ID: 1500030
• Math proficiency: 32% ▼ -10.00%
• Reading proficiency: 50% ▼ -3.00%
• Median HH income: $69,005
• Composite: 37.07/100
• National rank: #4504
• State rank: #1 of 1 in HI

Livability — Kailua

• Score: 83/100
• State rank: #2
• US rank: #906

Category grades

Amenities A+ Commute A+ Cost of living F Crime A+ Employment A+ Housing C Health & safety A+ User ratings B

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Kailua, HI
• County: Hawaii County · 119,311 people
• City population: 50,670
• Metro: Hilo, HI
• Population (ZIP): 39,338
• Household income: $95,542
• Rent vs Own: 28.2% rent · 71.8% own
• Severe rent burden: 766.0

Population outlook (Hawaii County) Hauer SSP2

• Today (2025): 220,733 people
• By 2030: 232,156 · +5.2%
• By 2040: 252,486 · +14.4%
• By 2050: 272,703 · +23.5%
• By 2075: 332,113 · +50.5%
• By 2100: 398,342 · +80.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Highly diverse neighborhood (Simpson 0.78)
• Race & ethnicity: White 44% Two or more races 22% Asian 17% Pacific Islander 14% Hispanic / Latino 6%
• Hispanic origin (detail): Mexican 3% Puerto Rican 2%
• Common ancestry: Russian 2% Scotch-Irish 2% Portuguese 2%
• Foreign-born: 16% · Canada, China, South Korea
• Languages at home: 78% English-only · Other Asian/Pacific 13% Spanish 2% Tagalog/Filipino 2%

Political lean MEDSL · Hawaii

• 2024 margin: Strong D (+28.3) · D 63.0% · R 34.7% · Other 2.3%
• 2008→2024 swing: -25.4pp toward R · 2008: 53.7pp · 2024: 28.3pp
• All cycles: 2024: D+28.3 2020: D+36.2 2016: D+36.6 2012: D+51.3 2008: D+53.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -236.29%
• Current HPI: 183.8367
• Rent YoY: ▲ 2.53%
• Metro: Hilo, HI
• State GDP YoY: —
• F500 in state: 0

Price history

+1310.4% since first listed

18 events — show timeline

• 2026-05-28 Listed $149,500 HI Information Service
• 2025-08-13 Listing Removed — HI Information Service
• 2024-08-11 Listed $179,500 HI Information Service
• 2022-07-07 Sold (MLS) $125,000 HI Information Service
• 2022-05-23 Contingent — HI Information Service
• 2022-05-18 Listed $130,000 HI Information Service
• 2017-03-15 Sold (MLS) $42,000 HI Information Service
• 2017-03-04 Pending — HI Information Service
• 2017-03-01 Price Changed $44,000 HI Information Service
• 2017-03-01 Listed $42,000 HI Information Service
• 2002-08-21 Sold (Public Records) $1,457,000 Public Records
• 1990-06-29 Sold (Public Records) $843,500 Public Records
• 1988-12-29 Sold (Public Records) $1,002,000 Public Records
• 1988-06-30 Sold (Public Records) $700,000 Public Records
• 1988-06-01 Sold (Public Records) $700,000 Public Records
• 1984-09-01 Sold (Public Records) $30,000 Public Records
• 1980-10-01 Sold (Public Records) $71,200 Public Records
• 1980-04-01 Sold (Public Records) $10,600 Public Records

Property tax history

+11.2%/yr

Latest (2025): $1,656 · +5.1% YoY. Source: county tax records.