High rise condos as a long term investment

[Fernando E.]

Hi all,

My sister recently sold a property in Sacramento and planning to invest a very small portion of her profits in Hawaii. I plan to help her by joining in the venture.  I'm doing some research, I see some 1Bed 1Bath for about $125K+ and I ran some numbers  using BP Calculator, your comments & feed back is much appreciated

Purchase price: $125K

Down payment: 20%

Closing cost: $5K * 

Interest: 5.5% for 30 years

Rent: $2K / month * 

Property tax & insurance: $100

Repairs: 5% | CapEx: 5%. | Vacancy: 5% | Property Mgt: 8%

Net Cash flow: about $160   Cash On Cash: 6%

Total cash out is about $30K

*Not sure about closing cost and rent may vary

Purpose of the deal is to buy a property in a fairly good location walking distance from Waikiki beach, potentially grow some value for the next few years, having a property outside the US in Hawaii as a potential vacation home, if we don't rent out the mortage can be absorb w/o breaking the bank. 

Thanks all!