3 Ways to Determine If a Property is a Best Buy: Part III

1.) Property that yields a positive cash flow with minimal down payment typical for the area.2.) Property asking price is substantially below like kind homes that have sold within the last six months.3.) Property that is a quality structure and highly sought after in neighborhoods where the inventory for sale is relatively nonexistent and are selling at or below market value.This week the focus will be on topic number 3.) Properties, single family homes above average quality in highly sought after neighborhoods where the inventory for sale is relatively nonexistent and are selling below market value; or condos meeting the same quality standards where the inventory for sale is relatively nonexistent and are selling below market value.

For example 3 bed room condos are relatively in short supply in both the Waikiki and Kakaako area. For our best buy in this area my favorite building would be Koolani. Generally 3 bed rooms in this building sell for over a million dollars. Currently there are three 3 bedroom units on the market. They all come with two parking stalls. Unit 2609 boasts 1,392 square feet. It list at $949,000. Unit 3901 Boast 1,374 square feet and sells at $980,000. Finally there is Unit 1002 which boast 1,561 square feet and list at $1,195,000. Two units have sold in 2009. Unit 4409 at 1,393 square feet sold 3/3/09 for $1,040,000 and unit 2602 which boast 1,561 square feet sold 1/9/09 for $1,250,000. From this information unite 2609 would be the best buy of the three.

For single family homes an area that is very sought after where the inventory is in short supply is Aina Haina Beach. There are currently three properties on the market. Also since January of 2009 there has only been one sale. Although properties generally sell for well over $2,000,000 there is currently a 3 bedroom, 1,128 square foot unit is average condition selling for $859,000. The other two homes on the market are 3 bedrooms, one 2,152 square feet, average condition and a 5 bedroom, 3,731 square feet; they both list at $3,475,000. The one sale in this area was September 1st 2009. It was 5 bedroom home at 6,930 square feet which, sold for $5,500,000. The 3 bedroom at $859,000 would appear to be our best buy in this case. If you would like any help in identifying a best buy or if you are interested in viewing any of the listings mentioned in this article I can be reached on my cell 503 475 6872. Mahalo!