Annual averages on Oahu for analyzing a property - Are these correct ?

[Fouad Hajji]

Aloha,

I’m looking for some feedback on some annual historical averages on Oahu.

These come from many difference sources, which could be unreliable.

Which of these seem incorrect to you?

mortgage closing costs: 2 to 5%

property value appreciation: 3 to 6%

cash on cash return: 2 to 4%

cap rate: 4 to 5%

rent growth: 3 to 5%

rental property expenses growth: 2 to 4%

repairs & maintenance cost: 5 to 10%

capex: 1 to 3 %

Vacancy rate: 4 to 6%

Mahalo !

[Sayed Jaffar]

Fouad,

mortgage closing costs: 2 to 5% This look okay especially if you include buying points

property value appreciation: 3 to 6% I would go with 1 - 3% as it varies for neighborhood/area to even buildings

cash on cash return: 2 to 4% This should be higher than your range.

cap rate: 4 to 5% Not sure

rent growth: 3 to 5% 1-3% depending on the area

rental property expenses growth: 2 to 4% This seems okay

repairs & maintenance cost: 5 to 10% This seems okay

capex: 1 to 3 % Not sure

Vacancy rate: 4 to 6% Depending on the area, I would put this to 1-2 months on average.