400 Hobron Ln APT 1705, Honolulu, HI 96815 — 23.1% Cash-on-Cash

About this property

A one-bedroom, one-bath leasehold condo in Honolulu's 96815 zip, 400 Hobron Ln APT 1705 offers 681 square feet of living space with a private lanai and a full roster of building amenities.

The unit comes with a new range/oven and dishwasher, one dedicated parking space, and a storage locker — practical inclusions that matter to a tenant evaluating a long-term rental. The building adds a rooftop deck with pool and BBQ areas, a fitness center, yoga room, and sauna, plus 24-hour security and central A/C bundled into the maintenance fee. That last point is material: a tenant paying $3,173/month who doesn't receive a separate utility bill for air conditioning in Honolulu's climate is a tenant who stays.

The listing is priced on an as-is basis, which typically signals the seller isn't entertaining repair credits. At 88 days on market with no price reduction from the original list, the property hasn't moved quickly, but it also hasn't been chased down in price. That holding pattern is worth watching: it may reflect buyer hesitation around the leasehold structure rather than any physical deficiency in the unit itself.

The leasehold designation is the single most important detail in the property description. Unlike fee-simple ownership, a leasehold unit means the land beneath the building is leased, not owned outright. Lease terms, expiration dates, and renegotiation schedules are critical due-diligence items before closing.

The investment case

At $210,000 with estimated monthly rent of $3,173, this property generates $807 in monthly cash flow after a total payment of $2,366 — metrics that sit well above what most Honolulu listings produce.

List Price

$210,000

Monthly Payment (PITI+HOA)

$2,366

Principal & Interest

$1,090

Property Tax

$49

Insurance

$70

HOA

$1,157

PMI

$0

Est. Monthly Rent

$3,173

Estimated rent based on automated valuation of comparable listings.

Cash-on-Cash Return

23.1%

Cap Rate

11.1%

Monthly Cash Flow

$807

Gross Rent Multiplier

5.5

DSCR

1.8

The 23.1% cash-on-cash return is the headline number, and it's the highest in ZIP 96815 against a zip average of 12.4%. That gap isn't cosmetic. It reflects a purchase price of $210,000 in a zip where the for-sale comp median sits at $565,000 — a 63% discount to the local median on a per-unit basis. The low entry price compresses the equity requirement and amplifies the yield on deployed capital.

Breaking down the monthly payment: principal and interest run $1,090 at the current 30-year fixed rate of 6.43%, property tax adds $49, insurance $70, and HOA fees $1,157. That HOA figure is the largest single line item after P&I, and it's not negotiable. Investors who underwrite this deal need to treat the $1,157 as a fixed cost with upside risk — HOA fees on aging Honolulu condo buildings have a history of special assessments.

The cap rate of 11.1% and net operating income of $1,946/month are strong by any reasonable standard. The debt service coverage ratio of 1.8 means the property generates $1.80 of NOI for every $1.00 of debt service — a cushion that gives a lender confidence and an investor room to absorb a vacancy month without going cash-flow negative. The gross rent multiplier of 5.5 is low, reinforcing that the price is genuinely cheap relative to the income the unit can produce.

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

Annual return outlook

The 5-year total ROI of 32.3% draws from three sources: cash flow doing the heaviest lifting, followed by mortgage paydown, with appreciation as a secondary contributor.

Cash flow contributes 23.1% of the 32.3% five-year total — meaning yield, not price appreciation, is the primary return engine here. That's an unusual profile for a Honolulu condo, where most deals in the city lean on appreciation to justify thin or negative cash flow.

Mortgage paydown adds 5.4%, a mechanical return that compounds quietly as the tenant's rent services the debt. Over five years at a $210,000 purchase price, that's real equity accumulation without any market dependency.

Appreciation contributes an estimated 3.8% annually. That figure is an estimate, not a market-derived data point, so it should be weighted accordingly. Honolulu real estate has historically appreciated, but leasehold properties don't always track fee-simple appreciation curves — lease terms and remaining lease duration can suppress resale value independent of broader market conditions. Investors who model appreciation into their exit should stress-test the leasehold structure before assuming fee-simple-equivalent gains.

The five-year case here is primarily an income story. If appreciation materializes, it's upside. If it doesn't, the cash flow and paydown still produce a defensible return.

How it compares to nearby for-sale listings

Five active one-bedroom listings in ZIP 96815 provide a price context for this unit, and the spread is striking.

This property's $210,000 ask prices it at roughly 37% of the $565,000 for-sale comp median in the same zip and bedroom count. On a price-per-square-foot basis, 400 Hobron Ln at 681 square feet implies approximately $308/sqft. The nearest comp by size, 1600 Ala Moana Blvd APT 2602 at 676 square feet, lists at $650,000 — nearly $962/sqft. Even the smallest comp, 2211 Ala Wai Blvd APT 2103 at 413 square feet, asks $345,000, or $835/sqft.

The price gap is real, and it's almost entirely explained by the leasehold structure. Fee-simple one-bedrooms in 96815 command a significant premium over leasehold units, and the comp table reflects that. Buyers who compare this listing to the median without accounting for that distinction will draw the wrong conclusion.

Days on market also diverges sharply. The five comps have been listed between four and eight days. This property has been available for 88 days. That's not a sign of a defective unit — it's consistent with leasehold properties attracting a narrower buyer pool, specifically investors comfortable with the structure rather than owner-occupants who typically prefer fee-simple.

The tax-assessed value of $520,500 against a $210,000 ask is another data point worth flagging. Assessed values and market values don't always align, but a gap that wide warrants a closer look at the lease terms and any encumbrances that might explain the discount.

Rental demand in this zip

Rental comp data for one-bedroom units in ZIP 96815 is limited, which introduces some uncertainty into the cash-flow projection.

The estimated monthly rent of $3,173 drives the entire cash-flow case, but there are zero directly comparable rental listings in ZIP 96815 with one bedroom to validate that figure against. That's not unusual for a zip with a relatively thin rental inventory, but it does mean the rent estimate carries more model risk than a projection backed by five or ten active comps.

What can be said: $3,173/month for a 681-square-foot one-bedroom in a Waikiki-adjacent zip with central A/C, building amenities, and 24-hour security is a plausible number given the location. Short-term rental demand in this corridor is historically strong, and the building's pet-friendly policy and amenity stack are features that support premium pricing in both short- and long-term rental markets.

Investors should run their own rental market check before closing. Even a modest rent haircut changes the math. At $2,800/month, cash flow drops to roughly $434/month and the CoC return compresses. At $2,500/month, the deal is still cash-flow positive but the margin shrinks further. The DSCR of 1.8 provides a buffer, but rent verification is the single most important pre-closing step for this specific deal.

Who this property suits + risks to weigh

This property suits an income-focused investor comfortable with leasehold ownership and willing to do the legal due diligence that structure demands.

Best fit

An investor who wants Honolulu exposure at a fraction of the typical entry price, and who generates returns primarily from rent rather than appreciation, is the natural buyer here. The $210,000 price point lowers the capital requirement substantially compared to fee-simple alternatives in the same zip. The 23.1% cash-on-cash return and $807 monthly cash flow are among the strongest income profiles available in Honolulu's market. For a buyer who already owns fee-simple property elsewhere and wants a high-yield income asset rather than another appreciation play, this fits that mandate.

The building's amenity stack — rooftop pool, fitness center, sauna, 24-hour security, and included central A/C — supports tenant retention, which matters when the rent estimate hasn't been confirmed by active comps.

Risks to weigh

The leasehold structure is the dominant risk. Lease expiration, ground rent renegotiation terms, and any restrictions on subleasing or short-term rentals must be reviewed by a Hawaii real estate attorney before committing. Leasehold properties can be difficult to finance with conventional loans, and resale liquidity is narrower than fee-simple. The 88-day market time is consistent with this dynamic.

The $1,157/month HOA fee is the second risk. It's the largest cost line after principal and interest, it's non-negotiable, and special assessments on older Honolulu condo buildings are not uncommon. Reviewing the HOA reserve study and meeting minutes is essential. A single large special assessment could materially alter the return profile for years.

Finally, the rent estimate lacks local comp support. Verifying achievable rent before closing is not optional for a deal where the entire cash-flow thesis rests on a single number.