74-5618 Palani Rd Unit I5 · Kailua, HI 96740

$125,000

1 bd · 1.0 ba · 535 sqft · Condo public records · 10 Days on market

Built 1969 $625/mo HOA · 29% of rent

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Why this score? — see what drove the C+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +24.2/30.0
• 1% rule +10.0/10.0
• DSCR +7.8/10.0
• ARV discount +7.5/15.0
• Livability +4.2/5.0
• Schools +3.7/10.0
• Rent growth +3.1/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

This is a leasehold property which is nicely remodeled and a one bedroom in the heart of Kailua Kona. The seller (landlord) is getting close to retirement and looking to exit the landlord business. A wonderful investment property OR a place for you to call home. This is a must see. The condo boasts newer counters, tile floors, the popcorn ceiling has even been removed. There is a gas stove, dishwasher and garbage disposal. The screened in lanai is wonderful and allows you to view the ocean while sipping your coffee, reading a book or relaxing with your pupus (appetizers). And dont forget the condo is coming turnkey!!! Kona Kai Condomiums are approved for short term vacation rentals as well. . The location cant be beat! Condo is being sold AS IS. Current tenants lease expires 11-30-2021

Key facts

• Turnkey unit
• Newer ac units
• $625 HOA

Tags

• SHORT WALK TO RESTAURANTS
• SHORT WALK TO SHOPPING
• SHORT WALK TO WATERFRONT
• NEWER AC UNITS
• TURNKEY UNIT

Property features AI

Finance

• Financial info: Property is used as a short-term vacation rental
• HOA & community: Association fee $625; No special assessments noted; Pets allowed

Exterior

• Parking: Assigned parking
• Utilities: Cable internet available; Cable available; Electricity available; Natural gas available; Phone available; Sewer connected; Solid waste disposal included with maintenance fees
• Home design: Attached property
• Exterior features: Leasehold land tenure; Lava zone 4; Zoned CV-10; Paved roads

Interior

• Kitchen: Dishwasher
• Bathrooms: 1 bathroom (1 full)
• Interior features: Property is attached (CPR); Used as a short-term vacation rental

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath condo listed at $125k.

Deal economics

• At list price, monthly cash flow is $250 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $125k).
• Cap rate 8.7% vs local median 1.6% in Kailua — 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.

Location & tenants

• Location reads 83/100 on livability (#2 in HI, #906 nationally) — a professional / high-income tenant draw. Strengths: crime A+, amenities A+, commute A+; Watch: 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: Rents rising (+2.5%/yr); 410 active listings in the ZIP; 5 comparable units currently listed for rent nearby; rentals at typical pace (median 23d on market — plan ~3-4 weeks tenant-placement turnaround); solid renter incomes; 982 units permitted in Hawaii County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $864 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Hawaii County population projected at +24% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• 4 sale attempts since 17y 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 $72k; list at $125k implies a 72% gain — meaningful room to come down on a strong offer.

Risks & watch-outs

• Watch-outs: HOA is 29% of rent.

Recommended offer $125,000

Questions for the listing agent

1. Built in 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
3. 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?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
6. 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.
7. 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.
8. 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.

Investment metrics

• 1% rule: 1.74% ✓
• Cap rate: 8.70%
• Cash-on-cash: 8.58%
• DSCR: 1.38
• GRM: 4.8

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 2.53% rent growth · sell at horizon

5-year hold

• IRR: -3.8%
• Equity multiple: 0.86×
• Total profit: $-4,930
• Equity at exit: $18,638

10-year hold

• IRR: 5.4%
• Equity multiple: 1.39×
• Total profit: $13,719
• Equity at exit: $10,808

Cash invested: $35,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 37 Tenant-Leaning
• State Hawaii: 37 Tenant-Leaning · D+13
• County: — inherits STATE
• City: — inherits STATE

Honolulu has source-of-income protections; warranty of habitability strong.

Methodology + full state rankings →

ZIP-level market 96740

• Rents YoY: 2.5%
• Active inventory: 410
• Price-to-rent: 4.8×

Monthly cashflow live

• Estimated rent: $2,177 high
• Mortgage (P&I): −$656
• Tax from tax record: −$137 /mo · $1,639/yr
• Insurance: −$52
• HOA: −$625
• Vacancy / Maint / Mgmt: −$457
• Net cashflow: $250

Break-even live

Break-even rent $1,860

Max offer price $125,000

Occupancy floor 84%

Sensitivity live

Price	-10% $321	-5% $286	+0% $250	+5% $215	+10% $180
Rent	-10% $78	-5% $164	+0% $250	+5% $336	+10% $422
Rate	-1.0pp $313	-0.5pp $282	base $250	+0.5pp $218	+1.0pp $185

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $31,250
• Closing costs: $3,750
• Reserves months: —
• Total cash needed: —

Rent comps 5 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
75-5730 Alahou St Unit 01 Kailua-Kona, HI	1.0	1.0	433	$1,975	$4.56	45d	1	0.49mi
75-5730 Alahou St Unit 15 Kailua-Kona, HI	1.0	1.0	433	$1,975	$4.56	25d	1	0.49mi
75-5730 Alahou St Unit 03 Kailua-Kona, HI	1.0	1.0	433	$2,000	$4.62	18d	1	0.49mi
75-5776 Kuakini Hwy #203 Kailua-Kona, HI	1.0	1.0	372	$2,100	$5.65	22d	1	0.66mi
75-228 Aloha Kona Dr Unit Hale Kailua-Kona, HI	—	1.0	607	$2,350	$3.87	4d	1	0.95mi

HOA detail condo

• Monthly dues: $625 · $7,500/yr
• Likely covers: trashgas
• Assessments: None detected in remarks — confirm with the listing agent.

Listing history 8 events

1. 2026-06-21
   days on market $125,000 Active 10 DOM
2. 2026-06-18
   days on market $125,000 Active 7 DOM
3. 2026-06-17
   days on market $125,000 Active 6 DOM
4. 2026-06-16
   days on market $125,000 Active 5 DOM
5. 2026-06-15
   days on market $125,000 Active 4 DOM
6. 2026-06-13
   days on market $125,000 Active 2 DOM
7. 2026-06-13
   remarks 529-char remark
8. 2026-06-13
   listed $125,000 Active 1 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast HI · Partial reset (capped growth)

• Current annual tax: $1,639 · $137/mo
• Projected year-2 tax: $1,639 · $137/mo
• Expected delta: $0/yr ($0/mo · 0.0%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🫁 Air quality 1/10 Low

Taxation est. · year 1

• Rental income: $26,119
• − Mortgage interest: −$7,002
• − Property taxes: −$1,639
• − Insurance: −$625
• − Repairs & maintenance: −$2,090
• − Management: −$2,090
• − HOA: −$7,500
• − Depreciation: −$3,636
• Taxable income: $1,538
• Est. tax owed @ 24.0%: −$369
• After-tax cash flow: $2,635/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Hawaii Department Of Education
• NCES district ID: 1500030
• Math proficiency: 32% ▼ -10.00%
• Reading proficiency: 50% ▼ -3.00%
• Median HH income: $69,005
• Composite: 37.07/100
• National rank: #4504
• State rank: #1 of 1 in HI

Livability — Kailua

• Score: 83/100
• State rank: #2
• US rank: #906

Category grades

Amenities A+ Commute A+ Cost of living F Crime A+ Employment A+ Housing C Health & safety A+ User ratings B

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Kailua, HI
• County: Hawaii County · 119,311 people
• City population: 50,670
• Metro: Hilo, HI
• Population (ZIP): 39,338
• Household income: $95,542
• Rent vs Own: 28.2% rent · 71.8% own
• Severe rent burden: 766.0

Population outlook (Hawaii County) Hauer SSP2

• Today (2025): 220,733 people
• By 2030: 232,156 · +5.2%
• By 2040: 252,486 · +14.4%
• By 2050: 272,703 · +23.5%
• By 2075: 332,113 · +50.5%
• By 2100: 398,342 · +80.5%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Highly diverse neighborhood (Simpson 0.78)
• Race & ethnicity: White 44% Two or more races 22% Asian 17% Pacific Islander 14% Hispanic / Latino 6%
• Hispanic origin (detail): Mexican 3% Puerto Rican 2%
• Common ancestry: Russian 2% Scotch-Irish 2% Portuguese 2%
• Foreign-born: 16% · Canada, China, South Korea
• Languages at home: 78% English-only · Other Asian/Pacific 13% Spanish 2% Tagalog/Filipino 2%

Political lean MEDSL · Hawaii

• 2024 margin: Strong D (+28.3) · D 63.0% · R 34.7% · Other 2.3%
• 2008→2024 swing: -25.4pp toward R · 2008: 53.7pp · 2024: 28.3pp
• All cycles: 2024: D+28.3 2020: D+36.2 2016: D+36.6 2012: D+51.3 2008: D+53.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -236.29%
• Current HPI: 183.8367
• Rent YoY: ▲ 2.53%
• Metro: Hilo, HI
• State GDP YoY: —
• F500 in state: 0

Price history

+75.8% since first listed

20 events — show timeline

• 2026-06-05 Listed $125,000 HI Information Service
• 2021-03-30 Sold (MLS) $72,500 HI Information Service
• 2021-02-13 Contingent — HI Information Service
• 2021-02-12 Price Changed $75,000 HI Information Service
• 2021-02-08 Price Changed $72,500 HI Information Service
• 2021-01-30 Price Changed $85,000 HI Information Service
• 2021-01-05 Price Changed $93,500 HI Information Service
• 2020-11-16 Listed $99,500 HI Information Service
• 2014-06-30 Sold (MLS) $26,000 HI Information Service
• 2014-06-30 Sold (Public Records) $26,000 Public Records
• 2014-05-13 Listed $27,500 HI Information Service
• 2010-05-13 Sold (MLS) $35,000 HI Information Service
• 2009-12-22 Listed $39,900 HI Information Service
• 2005-01-21 Sold (Public Records) $145,000 Public Records
• 2002-08-21 Sold (Public Records) $1,457,000 Public Records
• 1990-06-29 Sold (Public Records) $843,500 Public Records
• 1988-12-29 Sold (Public Records) $1,002,000 Public Records
• 1988-06-30 Sold (Public Records) $700,000 Public Records
• 1988-06-01 Sold (Public Records) $700,000 Public Records
• 1980-02-01 Sold (Public Records) $71,100 Public Records

Property tax history

+11.2%/yr

Latest (2025): $1,639 · +5.2% YoY. Source: county tax records.