901 Lower Main St

Wailuku, HI 96793

$2,035,000B

None bd · None ba · — sqft · Built — · MultiFamily · Active · 135 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $50,291/mo
• Mortgage (P&I): −$10,672
• Tax + insurance: −$3,458
• HOA: −$0
• Vac / Maint / Mgmt: −$10,561
• Net cashflow: $25,600/mo
• Annual: $307,200/yr
• Cap rate: 21.43%
• Cash-on-cash: 54.05%
• DSCR: 3.41
• 1% rule: 2.47%
• Cash to close: $569,800

Investor read

• This is a multifamily listed at $2.04M.
• At list price, monthly cash flow is $26k ($307k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($50k rent vs $2.04M).
• It's been on market 135 days — a 12% lower offer ($1.79M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $1.79M (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $14k of loan paydown is wiped out by about $61k of value loss. Plan a longer hold.
• Location reads 77/100 on livability (#8 in HI, #2,917 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A+, employment 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.
• Watch-outs: flood insurance adds $66/mo.
• Market conditions: Rents rising (+3.3%/yr); 119 active listings in the ZIP; 30 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 57% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 906 units permitted in Maui County in 2024 (289 in 5+ unit buildings).
• Maui County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 4 sale attempts since 12y ago; this cycle's ask is 14% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Current owner paid $295k; list at $2.04M implies a 590% gain — meaningful room to come down on a strong offer.
• At projected returns (-3.0% appreciation + 3.3% rent growth), your $570k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• At $50,291/mo this rent would consume 561% of the median local household income ($108k/yr) (locally 794% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 135 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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.
• 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 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.