1st Time Investor - Kamaina

[Ky Polo]

I am moving back to Oahu and interested in purchasing a rental property with 2-6 separate dwelling units or multiunit property in Honolulu - Ideally in Makiki or somewhere near Ward/Kakaako. I am a noob and wondering how much I could expect to pay and what type of CAP rate I can expect for a property like this? First time poster. Thank you in advanced for insight.

[Ky Polo]

@Isi Nau Thank you! Appreciate the valuable information.

Can you help me understand what a nonconforming SFH is? Is it a property zoned as a R-1 but there are multiple separate dwellings on that property?

Based on some previous posts I have seen on BiggerPockets, this can lead to problems if you want to renovate in the future - with licenses and contractors etc...

It also makes sense that properties in town have a low CAP rate but high appreciation value.

Can you provide insight into the expansion west with the rail and areas near Waikele, Mililani, and Ewa Beach/Kapolei? Does anyone have experience investing in these areas and would these areas offer a higher CAP rate and better starting point for a first time investor? Thoughts? I live on the east side so I know it would be harder to manage a property on the other side of the island, but might be worth it if the west side is more affordable with better bang for the buck.

-KY