Māmalu Tower | 2 Bedroom Plan

Urban Honolulu, HI 96813

$600,000F

2 bd · 2.0 ba · 707 sqft · Built — · Townhouse · Active · 234 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,771/mo
• Mortgage (P&I): −$3,854
• Tax + insurance: −$1,225
• HOA: −$0
• Vac / Maint / Mgmt: −$792
• Net cashflow: $-2,100/mo
• Annual: $-25,200/yr
• Cap rate: 2.86%
• Cash-on-cash: -12.25%
• DSCR: 0.46
• 1% rule: 0.51%
• Cash to close: $205,772

Investor read

• This is a 2-bed/2.0-bath townhouse listed at $600k. Condition is rated excellent.
• At list price, monthly cash flow is $-2k ($-25k/yr) — negative.
• To cash-flow at today's rent, offer at most $431k (28.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $377k (37.2% below list).
• It's been on market 234 days — a 12% lower offer ($528k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $377k (37.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-0.7%/yr); year-one equity from $5k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads: area grade F — affects rentability + tenant quality, not the cash-flow math above.
• 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: Royal Elementary School (math 27% / reading 32%, grade F, #122 of 183 statewide, top 71%, 325 students, 65% FRL); Princess Ruth Keelikolani Middle School (math 8% / reading 23%, grade F, #42 of 42 statewide, top 100%, 324 students, 69% FRL); President William Mckinley High School (math 28% / reading 69%, grade D, #13 of 43 statewide, top 33%, 1,502 students, 50% FRL) — zoned schools average 61% FRL vs 39% district-wide (22 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: Rents flat; 255 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 88d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 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.
• Cap rate 2.9% vs local median 1.5% in Urban Honolulu — 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.
• At $3,771/mo this rent would consume 49% of the median local household income ($92k/yr) — very limited rent-growth headroom before tenants either downsize or default.

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 234 days. Have you received any prior offers? Is the seller open to a 37% concession, seller financing, or rate buy-down credit?
• 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.