[Calc Review] Help me analyze this deal in Wahiawa Oahu

[Andrew Cannon]

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*This link comes directly from our calculators, based on information input by the member who posted.

Hi!

I'm a new investor and really want to start out on the right foot. So far it's been tough finding anything that might cashflow in Oahu. I was looking at this fourplex and using some rough estimates was able to make it meagerly cash flow. Some assertions I used was I would be able to get the property much cheaper than listed. Listed price is 749000 but it's been on the market over 40 days. I am also predicting I could get around $1,300 for each unit as a 1 bed 1 bath apartment with what I believe to be around 600sqf. I realize there isn't much margin for error so I was hoping someone could point out any issues.

Thanks for your time!

[Isi Nau]

Hey Andrew.  I've been on that street, but haven't seen inside any units.  Just a few thoughts/questions:

How much longer will you be living here?

Do you think you'll sell when you leave?

Separate electric meters is good.

I'd assume it's on one water/sewer meter.

Your numbers at the bottom of Page 1 look pretty accurate.  You could remove the management fee.  Water/sewer could run you close to $600 a month.

It looks like your calculations are based on all units being rented.  If you house hack, I think you'll be paying about $1000 a month out of pocket.

It's a funny little road.  You'll want to double check ownership when you get the title report.  Also, not sure if there is a maintenance fee for the road/neighborhood.

As for capex, the biggest ones to be aware of are the roof and cesspool.  Somewhat unrelated would be mold/moss on the exterior.  That area stays pretty wet and that street is in the shade a lot.  You'll see quite a bit of it on some of the properties on that street.

The property is legal non-conforming.  This will be something to consider if the property were to ever burn down or when you go to resell.

I think your rent estimate is pretty close at $1300.  The units are a little on the small side at just under 500 sq ft., but they aren't in a big building which is nice.

Overall, it's definitely better than renting.  The exist strategy will be a big part of the puzzle as well.