1860 Ala Moana Blvd APT 1001, Honolulu, HI 96815 — 17.7% Cash-on-Cash

About this property

This 2-bedroom, 2-bathroom condo on the 10th floor of a Waikiki high-rise sits at the intersection of resort amenity and investment utility, listed at $265,000 with 1,171 square feet of living area.

The unit's enclosed lanai converts what would typically be dead air into usable square footage — a meaningful distinction at this price point. The building delivers pool access, a BBQ area, and on-site dining and retail, which supports short-term and furnished long-term rental positioning. The 10th-floor placement yields direct views of Diamond Head and Fort DeRussy Beach Park with a partial ocean sightline, the kind of amenity that justifies premium rent without requiring the owner to spend on upgrades.

One structural detail demands attention before any offer: this is a leasehold property with a ground lease running through 2069. Fee simple interest may be available, but buyers must verify terms independently. Leasehold status directly affects resale liquidity and long-term appreciation capture, and it almost certainly explains why the $265,000 ask sits so far below the for-sale comp median of $588,000 in the same ZIP. The listing shows no price reduction from its original ask, and it has been on the market 30 days — neither a distress signal nor a fast-mover. The tax-assessed value of $668,000 underscores the leasehold discount baked into the list price.

The unit comes fully furnished and includes in-unit washer/dryer, reducing the friction and cost of tenant turnover.

The investment case

At 17.7% cash-on-cash — the highest in ZIP 96815 against a zip average of 12.4% — this property's financial profile is unusual for Honolulu, and the numbers warrant a close read.

List Price

$265,000

Monthly Payment (PITI+HOA)

$3,338

Principal & Interest

$1,358

Property Tax

$62

Insurance

$88

HOA

$1,830

PMI

$0

Est. Monthly Rent

$4,120

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

17.7%

Cap Rate

10.0%

Monthly Cash Flow

$782

Gross Rent Multiplier

5.4

DSCR

1.6

The math starts with a low acquisition cost. At $265,000, a conventional 20% down payment ($53,000) finances the rest at 6.43% over 30 years, producing a principal and interest payment of $1,358 per month. Add property tax ($62), insurance ($88), and the HOA fee ($1,830), and the total monthly obligation reaches $3,338. Estimated monthly rent of $4,120 leaves $782 in monthly cash flow before income taxes and depreciation.

The cap rate of 10.0% and net operating income of $2,202 per month are the cleaner measures of the asset's income productivity, stripping out financing. A gross rent multiplier of 5.4 means the property pays for itself in rent in roughly five and a half years — a tight multiple by most market standards. The debt service coverage ratio of 1.6 indicates the property generates 60% more income than it needs to cover debt, providing a meaningful cushion against vacancy or rent softness.

The HOA fee of $1,830 per month is the single largest line item in the expense stack, exceeding principal and interest. That's not unusual for a resort-amenity building in Waikiki, but it's a number that compresses cash flow if rent assumptions prove optimistic. Any investor underwriting this deal should stress-test the rent figure against a 10-15% reduction to confirm the position remains cash-flow positive. At $3,708 in estimated rent (a 10% haircut), the property still covers its $3,338 monthly obligation.

Figures exclude depreciation tax benefits, which vary by individual tax situation.

Annual return outlook

The 5-year total return projection of 26.5% draws from three sources, with cash flow doing the heaviest lifting.

Cash flow contributes 17.7 percentage points of the 26.5% total — it's the dominant return driver, not a secondary benefit. Mortgage paydown adds another 5.0 points as principal reduction builds equity over the hold period. Appreciation, estimated at approximately 3.8% annually, contributes the remaining 3.8 points to the five-year figure.

The appreciation estimate carries some uncertainty — it's a modeled projection rather than a scraped market series, so treat it as directional. What's less uncertain is the cash-on-cash component, which is grounded in current rent estimates and actual financing costs.

The leasehold structure is relevant here. Ground leases typically suppress appreciation relative to fee-simple properties, because buyers discount the finite ownership horizon into their offers. The 2069 expiration gives the lease roughly 44 years of remaining term, which is long enough that near-term investors aren't buying into imminent expiration risk — but it does mean the property is unlikely to track fee-simple appreciation rates in the same building or block. Investors prioritizing long-term equity accumulation should weigh that constraint against the strong current income yield.

For a five-year hold focused on income, the return stack is credible. For a decade-plus appreciation play, the leasehold discount is a ceiling worth understanding before committing.

How it compares to nearby for-sale listings

Five active 2-bedroom, 2-bathroom listings in ZIP 96815 provide a direct price context for this unit, and the gap is substantial.

This property's $265,000 ask translates to roughly $226 per square foot. The for-sale comp median sits at $588,000 — more than double the list price — and the comps range from $449,900 to $798,000. On a per-square-foot basis, the comps range from approximately $507/sqft (the 833-sqft unit at $588K) to $629/sqft (the 1,077-sqft unit at $715K). At $226/sqft, this listing is priced at less than half the per-square-foot cost of its nearest peers.

That discount isn't a market inefficiency — it's the leasehold structure doing exactly what leasehold structures do. Fee-simple ownership in the same ZIP commands a significant premium because buyers retain the land interest indefinitely. Leasehold buyers are acquiring a long-term occupancy right, not a permanent ownership stake, and the market prices that difference explicitly.

The comps also moved fast: all five comparable listings appeared within the last five days. This property has been on the market 30 days, which in a market where comparable inventory turns quickly suggests either the leasehold disclosure is slowing buyer interest or the buyer pool for leasehold-specific deals is narrower. Neither is a deal-killer, but both are signals worth tracking as negotiation leverage.

Rental demand in this zip

No active rental comps were identified in ZIP 96815 for 2-bedroom units, which limits the precision of the rent estimate but doesn't eliminate it.

The estimated monthly rent of $4,120 is the anchor for this deal's cash-flow case. Without active rental comps in the ZIP to validate that figure, investors are working with a modeled estimate rather than a market-confirmed rate. That's a meaningful distinction. The Waikiki corridor has historically commanded strong short-term and furnished rental demand given its proximity to Fort DeRussy Beach Park, Ala Moana Center, and the broader tourist and business travel ecosystem described in the listing — but those qualitative factors don't substitute for hard comp data.

The fully furnished unit with in-unit laundry is positioned for either long-term furnished tenants or short-term rental, which expands the addressable tenant pool. Short-term rental rates in Waikiki can exceed long-term lease rates significantly, but they also introduce platform fees, higher management overhead, and regulatory exposure that this analysis doesn't price in.

At $4,120, the rent-to-price ratio is 1.55% monthly — well above the 1% threshold that traditionally signals strong cash-flow potential. Even if the actual achievable rent comes in 10% below estimate at $3,708, the property remains cash-flow positive against its $3,338 monthly obligation. That buffer matters when comp data is thin. Investors should prioritize getting a local property manager's rent opinion before closing.

Who this property suits + risks to weigh

This property fits an income-focused investor comfortable with leasehold title and a high HOA cost structure — not a buyer chasing long-term equity appreciation.

Best fit

The investor this deal suits is one who wants current yield over equity accumulation. A 17.7% cash-on-cash return and $782 monthly cash flow are genuinely strong by Honolulu standards, where the city average cash-on-cash is effectively zero. The low entry price of $265,000 keeps the down payment and financing costs manageable, and the fully furnished, amenity-rich unit reduces the time and cost to get a tenant in place. Someone building a cash-flow portfolio who already holds fee-simple real estate elsewhere — and therefore doesn't need this asset to carry long-term appreciation — is the natural buyer.

Risks to weigh

The leasehold structure is the primary risk. Resale liquidity is lower than fee-simple, the buyer pool at exit is narrower, and appreciation is likely to lag comparable fee-simple units in the same market. The 2069 lease expiration is 44 years out, but as that date approaches, the property's resale value compresses further. Fee simple interest may be available — the listing notes this — but buyers must verify terms, costs, and whether the conversion is actually executable before factoring it into underwriting.

The $1,830 monthly HOA fee is a second structural risk. If the building's reserve fund is underfunded or a special assessment is levied, that number can spike. Reviewing the HOA's financials and reserve study before closing is not optional on a deal where HOA costs represent more than half the total monthly payment.

Finally, the rent estimate lacks local comp support. The cash-flow case is real but rests on a single modeled figure. Vacancy, rent softness, or a shift in short-term rental regulations could compress returns faster than the headline numbers suggest.