2452 Tusitala St APT 1510, Honolulu, HI 96815 — 16.3% Cash-on-Cash

About this property

A 2-bedroom, 2-bath condo in Waikiki Lanais, this 743-square-foot end unit is listed at $199,900 and has been on the market 47 days.

The listing describes this as a highly sought-after end unit in a well-maintained building, with views spanning the city and mountains — a meaningful distinction in a market where interior units at similar price points rarely offer that orientation. End-unit positioning typically means fewer shared walls, better natural light, and stronger tenant appeal, all of which support the rent estimate.

At 743 square feet, the floor plan is compact but functional for two bedrooms and two full baths. The property is non-owner occupied, meaning a tenant transition or immediate rental activation is the likely path. Public records show a tax-assessed value of $534,500 — more than 2.6 times the listing price — a gap that warrants attention and is addressed in the comps section below.

The 47 days on market is slightly elevated relative to the comparable listings in the area, most of which are showing just 3 to 5 days on market. No price reduction has occurred since the original listing. That combination suggests the property isn't moving at the pace of its peers, which may create negotiating room for a buyer willing to move quickly.

The investment case

At a 16.3% cash-on-cash return against a ZIP 96815 average of 12.4%, this property is the top cash-flow performer in its zip code — a meaningful gap, not a rounding difference.

List Price

$199,900

Monthly Payment (PITI+HOA)

$2,579

Principal & Interest

$1,037

Property Tax

$47

Insurance

$67

HOA

$1,428

PMI

$0

Est. Monthly Rent

$3,123

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

16.3%

Cap Rate

9.8%

Monthly Cash Flow

$544

Gross Rent Multiplier

5.3

DSCR

1.6

The math starts with a $199,900 purchase price. At 20% down ($39,980) and a 6.43% 30-year fixed rate, the principal and interest payment comes to $1,037 per month. Add property tax ($47), insurance ($67), and HOA fees ($1,428), and the total monthly carrying cost lands at $2,579. Estimated monthly rent of $3,123 produces a net cash flow of $544 per month, or $6,528 annually.

The HOA fee of $1,428 per month is the dominant cost line — more than the mortgage payment itself. That's not unusual for a full-service Honolulu high-rise, but it's the number any buyer needs to stress-test first. If HOA fees increase, the cash flow cushion compresses quickly. The debt service coverage ratio of 1.6 provides a reasonable buffer: the property generates 60% more income than needed to cover debt service, which is a healthy margin for a lender and an investor alike.

The cap rate of 9.8% and net operating income of $1,628 per month reflect performance before financing. The gross rent multiplier of 5.3 means the purchase price is recovered in roughly 5.3 years of gross rent — an efficient figure. City average cash-on-cash is 0.0%, which frames just how unusual a 16.3% return is in this market. Figures exclude depreciation tax benefits, which vary by individual tax situation.

The core investment case is straightforward: a below-market purchase price relative to assessed value, strong rent-to-price ratio, and the best cash-on-cash return in the zip.

Annual return outlook

The 5-year total ROI of 25.5% is built on three components, with cash flow doing the heaviest lifting at 16.3%.

Breaking down the 25.5% five-year total return: cash flow contributes 16.3%, mortgage paydown adds 5.4%, and appreciation accounts for 3.8%. Cash flow is the engine here, not a supporting character. That's a structurally different profile than most Honolulu condos, where appreciation typically carries the return thesis.

The 3.8% annual appreciation figure is an estimate — not a market-derived data point — so it should be treated as directional rather than precise. Even if appreciation comes in flat, the cash flow and paydown components alone produce a 21.7% return over five years on the initial equity position. That's the downside scenario, and it still looks reasonable.

Mortgage paydown of 5.4% reflects the equity accumulation from principal reduction over the period. At a $199,900 price point, the absolute dollar amounts are modest, but as a percentage of the down payment, the contribution is meaningful.

The appreciation estimate carries llm_estimate confidence, meaning it's a modeled projection rather than a figure drawn from recorded transaction data. Investors should weight the cash flow and paydown components more heavily when underwriting this deal, and treat appreciation as optionality rather than a return floor.

How it compares to nearby for-sale listings

Five comparable 2-bedroom, 2-bath condos are currently listed in ZIP 96815, with a median asking price of $588,000 — nearly three times this property's listing price.

The price gap between this listing and its for-sale peers is striking. The five active comps range from $449,900 to $798,000, with a median of $588,000. At $199,900, this property is listed at 34% of the comp median. On a price-per-square-foot basis, this unit comes in at roughly $269/sqft. The nearest comp by price, a 2-bed/1-bath at 653 sqft listed at $449,900, works out to approximately $689/sqft. Even the largest comp — a 1,270 sqft unit at $798,000 — prices at $629/sqft.

That discount to the comp set is what makes the cash-on-cash math work. It also explains the tax-assessed value of $534,500, which aligns more closely with the comp range than the listing price. A buyer should understand why the listing price sits this far below assessed value and comparable listings before closing — whether that reflects deferred maintenance, building-specific issues, or a motivated seller is worth investigating in due diligence.

The comp listings are all showing 3 to 5 days on market. This property has been listed 47 days without a price reduction. That divergence is either a pricing signal the market is sending, or a sign that buyers in this segment haven't discovered the listing yet. Either way, it creates a potential negotiating position.

Rental demand in this zip

There are no active rental comps recorded in ZIP 96815 for 2-bedroom units, so the $3,123 monthly rent estimate rests on modeled data rather than direct comparable evidence.

The absence of rental comps in the dataset is a material caveat. The $3,123 monthly rent estimate is the figure driving the entire cash-flow calculation — $544/month net, 16.3% cash-on-cash, 9.8% cap rate — and without direct comparable rental transactions to validate it, there's uncertainty baked into those numbers.

That said, the rent-to-price ratio is unusually favorable. A $3,123 monthly rent on a $199,900 asset represents a gross yield of 18.7% annually, which is well above typical Honolulu condo performance. The low purchase price relative to assessed value ($534,500) and the for-sale comp median ($588,000) suggests the rent estimate may actually be conservative relative to what comparable units in the building or zip code command.

Investors should pull current rental listings in the Waikiki Lanais building and the immediate area before closing to independently validate the $3,123 figure. If actual market rent comes in 10% lower — around $2,810 — the monthly cash flow drops to roughly $231, and the cash-on-cash return falls to approximately 6.9%. Still positive, but the margin of safety narrows. Confirming the rent before committing capital is the most important due-diligence step on this deal.

Who this property suits + risks to weigh

This property fits a cash-flow-oriented investor comfortable with high HOA exposure and willing to do rental market diligence in a zip with no active comp data.

Best fit

The investor profile here is someone seeking current income over long-term appreciation plays. The 16.3% cash-on-cash return and $544 monthly cash flow are rare in Honolulu, where the city average cash-on-cash sits at 0.0%. At a $39,980 down payment (20%), the capital requirement is low relative to most Honolulu condos, making this accessible to investors who don't want to deploy $100,000+ into a single asset. The non-owner-occupied status means a tenant may already be in place or the unit is ready to rent immediately, reducing the vacancy drag between purchase and income generation.

Risks to weigh

The HOA fee of $1,428 per month is the single largest risk factor. It exceeds the mortgage payment and is outside the investor's control. Any special assessment or fee increase directly erodes cash flow. A $200/month HOA increase would cut monthly cash flow nearly in half.

The 47-day DOM without a price reduction in a market where comparable listings are moving in 3 to 5 days is a flag worth investigating. It may reflect nothing more than a pricing strategy, but it could also indicate building-specific issues — pending litigation, deferred maintenance, or financing restrictions — that are suppressing buyer interest.

The gap between the $199,900 listing price and the $534,500 tax-assessed value is large enough to demand an explanation. If the assessed value reflects the building's actual condition and comparable sales, the listing represents genuine value. If it reflects an outdated assessment that doesn't account for known problems, the discount is less attractive than it appears.