56-099 Kahana St

Kahuku, HI 96731

$799,000D

3 bd · 1.5 ba · 1,008 sqft · Built 1989 · SingleFamily · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,037/mo
• Mortgage (P&I): −$4,190
• Tax + insurance: −$1,332
• HOA: −$0
• Vac / Maint / Mgmt: −$1,268
• Net cashflow: $-753/mo
• Annual: $-9,032/yr
• Cap rate: 5.16%
• Cash-on-cash: -4.04%
• DSCR: 0.82
• 1% rule: 0.76%
• Cash to close: $223,720

Investor read

• This is a 3-bed/1.5-bath single-family listed at $799k.
• At list price, monthly cash flow is $-753 ($-9k/yr) — negative.
• To cash-flow at today's rent, offer at most $690k (13.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $604k (24.4% below list).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $604k (24.4% below list) — sets the bar for 1% rule.
• In year one you build about $64k of equity ($6k loan paydown + $58k appreciation (7.3% local appreciation)).
• Location reads 66/100 on livability (#40 in HI) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, health & safety A+; Watch: schools C-, amenities F, 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: 33 active listings in the ZIP; 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 $83k; list at $799k implies a 867% gain — meaningful room to come down on a strong offer.
• By year 2, paydown + projected appreciation supports a ~$102k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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?
• 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.