47-325 Ahuimanu Road Kaneʻohe, HI 96744
Property overview
A detached single-family home, remodeled in 2019, configured with four separate living areas. Fee simple land, mountain views, and no required flood insurance.
What the four units can earn
The current rents are below market for the square footage. The analysis that follows uses realistic market rents a buyer could achieve after light cosmetic updates.
| Unit | Current Rent | Market Rent (used below) |
|---|---|---|
| 5-Bedroom | $3,200 | $3,500 |
| 4-Bedroom | $3,000 | $3,200 |
| 2-Bedroom | $2,200 | $2,500 |
| 1-Bed / Studio | $1,000 | $1,500 |
| Total / month | $9,400 | $10,700 |
| Total / year | $112,800 | $128,400 |
Market rents reflect the agent’s on-the-ground read for comparable Ahuimanu units. All figures below use the market column.
Two ways to look at this property
Because financing changes everything here, it’s worth looking at this property the way each type of buyer will.
Cash in, cash out.
An investor doesn’t live here. They care about one thing: does the rent, after every cost and the mortgage, leave money in their pocket? They also pay the higher investor interest rate.
Live in one, rent the rest.
An owner-occupant gets a lower interest rate, a homeowner tax exemption, and a low down-payment option — then lets three tenants cover most of the mortgage while they live in the fourth unit.
Net operating income vs. the mortgage
First we find the property’s Net Operating Income (NOI) — all rent collected, minus every operating cost, before any loan. Then we test it against three ways to finance the purchase.
Net Operating Income — Market Rents
| Financing | 20% Down | 50% Down | All Cash |
|---|---|---|---|
| Down payment | $330,000 | $825,000 | $1,650,000 |
| Loan amount | $1,320,000 | $825,000 | — |
| Rate (investor) | 7.25% | 7.25% | — |
| Annual mortgage | −$108,057 | −$67,536 | $0 |
| Net operating income | $63,436 | $63,436 | $63,436 |
| Cash flow / year | −$44,621 | −$4,100 | +$63,436 |
| Cash flow / month | −$3,718 | −$342 | +$5,286 |
| Cash-on-cash return | −11.8% | −0.5% | +3.7% |
| DSCR (rent ÷ mortgage) | 0.59 | 0.94 | — |
Cash-on-cash includes ~3% buyer closing costs. Cap rate at list price ≈ 3.8% (≈4.6% if self-managed). DSCR below 1.00 means the rent does not cover the mortgage; most lenders want 1.20+.
What an investor would pay to buy & hold
Since the property doesn’t cash-flow at the list price, a long-term buy-and-hold investor works backward — solving for the price where the same $63,436 in net operating income supports the purchase. Three common targets, financed at 25% down / 7.25% / 30-year:
(1.20 DSCR — lender ceiling)
(break-even cash flow)
(accepts slight negative)
Prices solve for the stabilized $63,436 NOI at market rents. A cash buyer would pay toward the higher end (no mortgage constraint); a cash-flow-focused investor toward the lower end.
Live in one unit, rent the other three
Same purchase price, same 20% down — but an owner who lives on-site gets a lower rate (≈6.5%), a homeowner tax exemption that roughly halves the property tax, and access to low-down-payment loans an investor can’t use. Here’s the monthly reality if they live in the 5-bedroom.
Who this property is built for
Each buyer’s best-case scenario, next to each other.
Needs all cash to profit
Lives well, builds wealth
How buyers will value it
Since a lender treats this as a single-family home, buyers and appraisers will price it against recent Kaneʻohe / Ahuimanu single-family sales — roughly $330–$372 per living square foot.
