2307 A N School St Unit A

Urban Honolulu, HI 96819

$475,000D

3 bd · 1.0 ba · 1,152 sqft · Built 1943 · SingleFamily · Active · 104 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,403/mo
• Mortgage (P&I): −$2,491
• Tax + insurance: −$355
• HOA: −$0
• Vac / Maint / Mgmt: −$715
• Net cashflow: $-157/mo
• Annual: $-1,889/yr
• Cap rate: 5.90%
• Cash-on-cash: -1.42%
• DSCR: 0.94
• 1% rule: 0.72%
• Cash to close: $133,000

Investor read

• This is a 3-bed/1.0-bath single-family listed at $475k.
• At list price, monthly cash flow is $-157 ($-2k/yr) — negative.
• To cash-flow at today's rent, offer at most $447k (5.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $340k (28.3% below list).
• It's been on market 104 days — a 9% lower offer ($432k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $340k (28.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads: area grade D — 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: Kalihi Waena Elementary School (math 14% / reading 28%, grade F, #157 of 183 statewide, top 87%, 465 students, 64% FRL); Governor Sanford B Dole Middle School (math 8% / reading 24%, grade F, #41 of 42 statewide, top 98%, 530 students, 78% FRL); Governor Wallace Rider Farrington High School (math 17% / reading 57%, grade F, #29 of 43 statewide, top 67%, 2,238 students, 54% FRL) — zoned schools average 65% FRL vs 39% district-wide (26 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 25% at this address vs 41% district-wide (-16 pts) — the specific schools serving this property underperform the Hawaii Department Of Education average; the district grade overstates school quality for this exact location.
• Watch-outs: built in 1943 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 41 active listings in the ZIP; 8 comparable units currently listed for rent nearby; rentals at typical pace (median 24d on market — plan ~3-4 weeks tenant-placement turnaround); 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.
• 7 sale attempts since 4y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Current owner paid $400k; 19% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 5.9% 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.
• This rent runs 41% of the median local income ($100k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 104 days. Have you received any prior offers? Is the seller open to a 28% concession, seller financing, or rate buy-down credit?
• Built in 1943 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.