1860 Ala Moana Blvd APT 1509, Honolulu, HI 96815 — 16.8% Cash-on-Cash

About this property

Unit 1509 at 1860 Ala Moana Blvd is a fully renovated 2-bed, 2-bath condo spanning 1,180 square feet on the 15th floor in Honolulu's 96815 zip code.

The 2024-2025 renovation is the property's most investable trait. A gut renovation at this scale typically commands a premium, yet this unit listed at $269,000 — well below the for-sale comp median in the zip. The kitchen received quartz countertops, new stainless appliances, and reconfigured cabinetry. Both bathrooms were updated with contemporary fixtures. A brand-new AC unit eliminates one of the most common near-term capital expenditure risks for buyers of older Waikiki stock.

Floor-to-ceiling windows and an oversized lanai are functional, not just aesthetic — natural light and outdoor space are meaningful rent drivers in this market. The split-bedroom layout adds practical value for investors targeting short-term or furnished rentals, where guest privacy is a selling point. The listing notes high-speed internet and cable TV are included in the building, which matters for furnished rental positioning.

The unit has been on the market 23 days and arrived with a $11,000 price reduction from its original ask — a modest but real signal that the seller is motivated. Non-owner-occupied status means no owner-occupancy complications for an investor taking possession. The property is not in pre-foreclosure or auction. One critical structural detail: this is a leasehold unit with a land lease running through 2069, which shapes both financing options and long-term exit strategy.

The investment case

At 16.8% cash-on-cash, this unit posts the highest CoC return in ZIP 96815 — 4.4 percentage points above the zip's 12.4% average — while generating $752 in monthly cash flow after all expenses.

List Price

$269,000

Monthly Payment (PITI+HOA)

$3,393

Principal & Interest

$1,379

Property Tax

$63

Insurance

$90

HOA

$1,861

PMI

$0

Est. Monthly Rent

$4,145

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

16.8%

Cap Rate

9.8%

Monthly Cash Flow

$752

Gross Rent Multiplier

5.4

DSCR

1.6

The numbers start with a $269,000 purchase price, which at 20% down produces a principal-and-interest payment of $1,379 per month at the current 6.43% 30-year fixed rate. Add $63 in property taxes, $90 in insurance, and the HOA fee of $1,861, and total monthly obligations land at $3,393. Estimated rent of $4,145 per month covers that stack with $752 to spare.

The HOA at $1,861 is the single largest line item — higher than the mortgage itself. That's not unusual for a fully-amenitized Waikiki high-rise, but it demands scrutiny. Any investor should review the HOA's reserve fund health and meeting minutes before closing. A special assessment on a building with deferred maintenance could compress or eliminate that cash flow quickly.

The cap rate of 9.8% and net operating income of $2,194 per month are strong by any standard. A gross rent multiplier of 5.4 means the property pays for itself in gross rent terms in roughly five and a half years — well below the 10-12x range typical of most urban condos. The debt service coverage ratio of 1.6 gives lenders and investors alike a meaningful cushion above break-even.

The tax-assessed value of $691,400 against a list price of $269,000 reflects the leasehold structure — fee-simple assessed value doesn't translate directly to leasehold market value — but it does confirm the unit isn't being sold at a premium to its intrinsic characteristics. Figures exclude depreciation tax benefits, which vary by individual tax situation.

Annual return outlook

The 5-year total ROI of 25.6% is built on three components: cash flow doing the heaviest lifting, mortgage paydown adding a steady equity layer, and appreciation contributing a meaningful but uncertain third.

Cash flow accounts for 16.8% of that 25.6% figure — it's the engine here, not a secondary benefit. Mortgage paydown contributes an estimated 5.0%, reflecting the equity accumulation on a $215,200 loan balance over five years at current rates. Appreciation adds an estimated 3.8% annually, though that figure is modeled rather than derived from a live transaction dataset, so it warrants softer confidence.

The leasehold structure complicates the appreciation picture. Leasehold condos in Hawaii have historically traded at discounts to fee-simple equivalents, and that discount can widen as the lease term shortens. With the lease running to 2069, there's roughly 44 years of remaining term — enough runway that appreciation should behave similarly to fee-simple for the near-to-medium term, but exit liquidity could narrow as the lease ages. A buyer planning a 5-year hold is unlikely to feel this pressure; a 15-year holder should model it explicitly.

For the 5-year horizon, the return thesis is straightforward: cash flow is real, paydown is mechanical, and appreciation is a reasonable but unguaranteed bonus. The property doesn't need appreciation to justify the purchase — the CoC alone clears most investors' hurdle rates. That's a durable position to be in.

How it compares to nearby for-sale listings

Five active 2-bed, 2-bath listings in ZIP 96815 provide a direct pricing context — and this unit's $269,000 ask sits dramatically below all of them.

The for-sale comp median in the zip is $588,000. At $269,000, this unit is priced at roughly 46% of that median — a gap that requires explanation rather than celebration. The leasehold structure is the explanation. Fee-simple 2-bed condos on Ala Moana Blvd and the surrounding blocks are trading in the $495,000-$798,000 range based on the active comp set. Leasehold units trade at a structural discount, and that discount is what makes the yield math work here.

On a price-per-square-foot basis, this unit at $228/sqft compares to comps ranging from roughly $558/sqft to $629/sqft for fee-simple product at similar square footage. That spread is almost entirely explained by tenure type, not by condition — the 2024-2025 renovation actually puts this unit in better physical shape than many of its fee-simple neighbors.

Days on market at 23, with a $11,000 price reduction already taken, suggests the seller has tested the market and is willing to deal. The comp set is fresher — most comps hit the market within the last 3-5 days — so direct absorption comparisons are limited. What the comp table confirms is that the 96815 zip carries strong demand for 2-bed product, and this unit's price point is structurally differentiated, not distressed.

Rental demand in this zip

No closed rental comps were available in ZIP 96815 for a 2-bedroom unit at the time of analysis, so the $4,145 monthly rent estimate rests on modeled data rather than direct transaction evidence.

The absence of rental comps in the immediate zip is a real data gap and shouldn't be papered over. Waikiki is a high-demand rental market by reputation, but reputation doesn't pay the mortgage — actual lease agreements do. An investor should independently pull active rental listings for comparable furnished 2-bed units in the building and on Ala Moana Blvd before underwriting $4,145 as a baseline.

That said, the $4,145 estimate isn't implausible for a fully furnished, ocean-view, high-floor unit that includes internet and cable. Furnished short-term rentals in Waikiki routinely exceed that figure, though Hawaii's short-term rental regulations have tightened and vary by property type and zoning. Long-term unfurnished rents for 2-bed units in this corridor have been reported in the $2,800-$3,500 range in recent years, which would compress the cash flow considerably. Confirming which rental strategy is legally permissible for this specific unit and building is a pre-offer due diligence step, not a post-closing one.

If the $4,145 figure holds, the DSCR of 1.6 provides a buffer — rents could fall roughly 18% before the property stops covering its obligations. That's a meaningful margin, but it depends entirely on the rent estimate being grounded in reality.

Rental demand in 96815 is structurally strong, but the specific rent projection here needs verification against active listings before it anchors a buy decision.

Who this property suits + risks to weigh

This property suits a cash-flow-focused investor comfortable with leasehold tenure and willing to do the regulatory homework on rental strategy before closing.

Best fit

An investor with $53,800 to put down (20% of $269,000) who wants immediate cash flow rather than a long-term land play. The 16.8% CoC and $752 monthly positive cash flow are rare in a market where most Honolulu condos produce negative or near-zero returns at 20% down. The fully renovated condition means minimal near-term capital expenditure outside of the HOA's purview. For a buyer who wants a turnkey, furnished rental in a high-demand tourist corridor without deploying $500,000+, this is one of the few doors that's open.

Risks to weigh

The leasehold structure is the defining risk. Leasehold financing is harder to obtain — some lenders won't touch leases with fewer than 30 years beyond the loan term, and while 2069 clears that bar today, it narrows over time. Resale liquidity is structurally thinner than fee-simple. The $1,861 HOA fee is the single largest monthly expense and is outside the investor's control; any increase or special assessment directly compresses returns. The rent estimate of $4,145 lacks direct comp support, and the gap between a furnished short-term rate and a long-term unfurnished rate in this building could be significant. Hawaii's short-term rental regulations are an active policy risk. Finally, the tax-assessed value of $691,400 versus the $269,000 purchase price shouldn't be read as hidden equity — it reflects fee-simple valuation methodology applied to a leasehold asset, not a pricing anomaly an investor can unlock.