95-269 Waikalani Dr Unit C505

Waipio Acres, HI 96789

$435,000D

3 bd · 2.0 ba · 1,023 sqft · Built 1976 · Condo · Active · 27 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,071/mo
• Mortgage (P&I): −$2,281
• Tax + insurance: −$361
• HOA: −$1,060
• Vac / Maint / Mgmt: −$645
• Net cashflow: $-1,277/mo
• Annual: $-15,322/yr
• Cap rate: 2.96%
• Cash-on-cash: -11.91%
• DSCR: 0.47
• 1% rule: 0.71%
• Cash to close: $121,800

Investor read

• This is a 3-bed/2.0-bath condo listed at $435k.
• At list price, monthly cash flow is $-1k ($-15k/yr) — negative.
• To cash-flow at today's rent, offer at most $209k (51.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $307k (29.4% below list).
• It's been on market 27 days — a 2% lower offer ($428k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $209k (51.9% below list) — sets the bar for cash-flow.
• In year one you build about $9k of equity ($3k loan paydown + $6k appreciation (1.5% local appreciation)).
• Location reads 74/100 on livability (#14 in HI, #4,795 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, employment A+, health & safety A+; Watch: 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.
• Watch-outs: flood insurance adds $68/mo; HOA is 35% of rent.
• Market conditions: Rents rising fast (+5.5%/yr); 137 active listings in the ZIP; 35 comparable units currently listed for rent nearby; rentals at typical pace (median 17d on market — plan ~3-4 weeks tenant-placement turnaround); high-income renter base; 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 5y 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.
• By year 4, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk — 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?
• Built in 1976 — 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?
• 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.
• 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.