54-217 Kamehameha Hwy

Hauula, HI 96717

$898,000D

2 bd · 1.0 ba · 1,140 sqft · Built 1942 · SingleFamily · Active · 345 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,500/mo
• Mortgage (P&I): −$4,709
• Tax + insurance: −$1,271
• HOA: −$0
• Vac / Maint / Mgmt: −$945
• Net cashflow: $-2,425/mo
• Annual: $-29,102/yr
• Cap rate: 3.62%
• Cash-on-cash: -9.54%
• DSCR: 0.58
• 1% rule: 0.50%
• Cash to close: $251,440

Investor read

• This is a 2-bed/1.0-bath single-family listed at $898k.
• At list price, monthly cash flow is $-2k ($-29k/yr) — negative.
• To cash-flow at today's rent, offer at most $470k (47.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $450k (49.9% below list).
• It's been on market 345 days — a 12% lower offer ($790k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $450k (49.9% below list) — sets the bar for 1% rule.
• In year one you build about $96k of equity ($6k loan paydown + $90k appreciation (10.0% local appreciation)).
• Location reads 62/100 on livability (#69 in HI) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+; Watch: health & safety C-, schools D, amenities F.
• Watch-outs: flood insurance adds $427/mo; built in 1942 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 19 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 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.
• 3 sale attempts since 19y ago; this cycle's ask has dropped $250k (22%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• By year 2, paydown + projected appreciation supports a ~$154k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.

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 345 days. Have you received any prior offers? Is the seller open to a 50% concession, seller financing, or rate buy-down credit?
• Built in 1942 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?