2509 Ala Wai Blvd APT 902, Honolulu, HI 96815 — 15.7% Cash-on-Cash

About this property

This is a fee simple studio condo on the Ala Wai Canal — 185 square feet of renovated living space priced at $194,900, with 26 days on market.

The unit has been fully remodeled, with modern finishes throughout and a layout engineered to extract maximum utility from 185 square feet. A 51-square-foot private lanai adds usable outdoor space and frames views of the Ala Wai Canal, the golf course, and the city skyline — a meaningful differentiator at this price point in Waikiki.

The $496/month HOA fee is the dominant line item in the cost structure, but it covers electricity, water, hot water, and sewer. That's an unusual inclusion that simplifies expense forecasting for a landlord and removes a friction point for tenants.

Public records show a tax-assessed value of $180,100 against a listing price of $194,900 — a modest 8.2% premium over assessed value, and no price reductions since listing. The property is flagged as non-owner occupied, consistent with investor use. At 185 square feet, it's a micro-unit by any standard; the trade-off is that the price of entry is among the lowest available in this zip code for fee simple ownership.

The investment case

The headline metric here is a 15.7% cash-on-cash return — the strongest in ZIP 96815, which averages 12.4% across comparable listings.

List Price

$194,900

Monthly Payment (PITI+HOA)

$1,617

Principal & Interest

$1,011

Property Tax

$45

Insurance

$65

HOA

$496

PMI

$0

Est. Monthly Rent

$2,126

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

15.7%

Cap Rate

9.6%

Monthly Cash Flow

$509

Gross Rent Multiplier

7.6

DSCR

1.5

At a 20% down payment of roughly $38,980, the monthly payment structure breaks down to $1,011 in principal and interest at 6.43%, $45 in property tax, $65 in insurance, and $496 in HOA fees — totaling $1,617. Against an estimated monthly rent of $2,126, that leaves $509 in monthly cash flow before maintenance reserves and vacancy.

The cap rate of 9.6% and net operating income of $1,565/month are strong for a Honolulu condo. The gross rent multiplier of 7.6 means the property's price is less than eight times its annual gross rent — a ratio that signals genuine cash-flow potential rather than speculative pricing. The debt service coverage ratio of 1.5 means the property generates 50% more income than needed to cover debt obligations, providing a meaningful cushion against vacancy or rent softness.

The city-wide average cash-on-cash across Honolulu listings is 0.0%, which underscores how unusual this property's return profile is for the market. Most Honolulu condos are priced for appreciation, not income. This one, at $194,900, sits at a price point where the rent-to-price ratio actually works.

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

The financial case rests on a low acquisition price relative to achievable rent — not on favorable financing or unusually low HOA costs.

Annual return outlook

The 5-year total ROI of 24.9% is built on three components: cash flow, mortgage paydown, and appreciation — with cash flow doing the heaviest lifting.

Cash flow contributes 15.7 percentage points of that 24.9% total, making it the primary return driver. Mortgage paydown adds 5.4 points as the loan balance erodes over five years. An estimated 3.8% annual appreciation rate contributes the remaining 3.8 points — the softest of the three components.

The appreciation figure is an estimate, not a market-derived data point, and should be treated accordingly. Waikiki real estate has historically held value, but micro-unit condos face a narrower buyer pool on resale, which can compress realized appreciation versus the broader market. A conservative underwrite might haircut that 3.8% figure or exclude it entirely and still arrive at a 5-year return north of 21% from cash flow and paydown alone.

What makes the outlook durable is that the return isn't dependent on appreciation materializing. If the property appreciates at half the estimated rate, the total ROI drops to roughly 23%. If it appreciates not at all, the investor still clears the cash flow and paydown components. That's a structurally different risk profile than most Honolulu condos, where the investment thesis is almost entirely appreciation-dependent.

How it compares to nearby for-sale listings

Five comparable studio condos are currently listed in ZIP 96815, with a median asking price of $349,000 — nearly 79% above this property's $194,900 price.

At $194,900 for 185 square feet, this property's price per square foot works out to roughly $1,054. The comp set tells a wide story: one unit at 333 square feet listed at $69,900 represents the low end, while a 310-square-foot unit at $460,000 and a 510-square-foot unit at $429,000 anchor the upper range. The $197,000 listing at 312 square feet is the closest price peer, but it offers 69% more living area for essentially the same money.

That size gap is the honest trade-off here. On a per-square-foot basis, $194,900 for 185 square feet is not cheap relative to the comp at $197,000 for 312 square feet. What this property offers instead is a fully renovated interior, canal views, a private lanai, and a fee simple title structure — factors that support the rent estimate more than the raw square footage does.

Days on market across the comp set range from 3 to 10 days, suggesting active demand for studio product in this zip. At 26 days, this listing has been on the market longer than its peers, which may reflect the micro-unit size or simply normal variance in buyer timing. There have been no price reductions since listing.

Rental demand in this zip

No directly comparable rental listings were identified in ZIP 96815 for studio units, leaving the $2,126 monthly rent estimate without local comp support.

The absence of rental comps in the same zip and bedroom category is a real data gap. The $2,126 estimate is the figure used in all cash-flow calculations, but investors should treat it as a starting point rather than a confirmed market rate.

What gives the estimate some credibility is the property's location. The listing description places it within walking distance of Kuhio Beach, the Honolulu Zoo, and the International Market Place — all draws for short-term and medium-term renters in the Waikiki corridor. Demand for furnished micro-units in this area tends to be driven by travel workers, seasonal residents, and remote workers seeking a Waikiki base, not traditional long-term tenants. That demand profile can support above-average rents per square foot, but it also introduces more turnover risk than a standard residential rental.

The $496/month HOA fee covering utilities is a genuine advantage in the rental market. Tenants in micro-units are often sensitive to all-in monthly cost rather than base rent, and a landlord who can advertise utilities-included has a meaningful marketing edge over comparable listings that don't.

Independent rent verification before closing is the prudent step given the comp gap.

Who this property suits + risks to weigh

This property suits a cash-flow-focused investor comfortable with micro-unit risks and the operational complexity of a Waikiki rental.

Best fit

An investor with roughly $39,000 to deploy who wants immediate positive cash flow in a market where most condos don't generate any. The 15.7% cash-on-cash return and 1.5 DSCR mean the property can absorb a meaningful vacancy period without turning cash-flow negative. Fee simple ownership — as opposed to leasehold, which is common in Honolulu — removes a significant long-term risk and preserves resale flexibility. The all-utilities-included HOA structure also makes this easier to manage remotely, which matters if the investor is off-island.

Risks to weigh

The 185-square-foot footprint is the central risk. Micro-units attract a narrower tenant pool and a narrower buyer pool on exit. If the $2,126 rent estimate proves optimistic — and with zero rental comps to anchor it, that's a real possibility — the cash-flow math deteriorates quickly. At $1,800/month in rent, monthly cash flow drops to roughly $183 and the CoC return falls below 6%. At $1,617 or below, the property breaks even on cash flow.

The HOA fee of $496/month is fixed and not within the investor's control. Any increase in the maintenance fee directly compresses cash flow with no offset. The building has waitlisted parking, meaning tenants cannot be guaranteed a parking space — a potential friction point in a market where parking commands a premium.

The 26 days on market, while not alarming, is longer than the 3-to-10-day range seen among comparable active listings. That's worth noting, even if the cause is unclear.