26 Kai Makani Loop #201

Kihei, HI 96753

$190,000C+

3 bd · 2.0 ba · 1,238 sqft · Built 2007 · Condo · Active · 19 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,779/mo
• Mortgage (P&I): −$996
• Tax + insurance: −$469
• HOA: −$1,244
• Vac / Maint / Mgmt: −$794
• Net cashflow: $276/mo
• Annual: $3,314/yr
• Cap rate: 9.00%
• Cash-on-cash: 9.66%
• DSCR: 1.43
• 1% rule: 1.99%
• Cash to close: $53,200

Investor read

• This is a 3-bed/2.0-bath condo listed at $190k. Condition is rated good.
• At list price, monthly cash flow is $276 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $190k).
• It's been on market 19 days — a 2% lower offer ($187k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $187k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 60/100 on livability (#89 in HI) — a middle-class / working-renter tenant base. Strengths: employment A+, crime B; Watch: health & safety C-, amenities F, commute 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.
• Zoned schools: Kihei Elementary School (math 37% / reading 45%, grade F, #88 of 183 statewide, top 48%, 720 students, 62% FRL); Lokelani Intermediate School (math 24% / reading 49%, grade F, #19 of 42 statewide, top 46%, 473 students, 52% FRL); Maui High School (math 24% / reading 75%, grade D+, #11 of 43 statewide, top 24%, 1,999 students, 36% FRL).
• Watch-outs: flood insurance adds $152/mo; HOA is 33% of rent.
• Market conditions: Rents flat; 537 active listings in the ZIP; 20 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 50% 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.
• Climate carrying-cost: in FEMA flood zone AH (mandatory federal flood insurance) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 9.0% vs local median 0.5% in Kihei — 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 $3,779/mo this rent would consume 51% of the median local household income ($88k/yr) (locally 1346% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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?
• 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.