3 Ways To Identify A Best Buy Property

There are three ways to determine if a property is a best buy:

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 we will address item number one where the focus is on properties that yield a positive cash flow with a minimal down payment. Positive cash flow is defined as a property where the monthly expenses are less than the monthly income. Generally expenses are fees, (like utilities and maintenance), plus, taxes, insurance, mortgage principle and interest. The income is generally considered rents. As a result positive cash flow is monthly income minus expenses where the rents are notably higher than monthly cost associated with sustaining the property. It is important to note that mortgage payments will vary depending on down payment, loan principal, interest rate and term of the loan. In an area like Waikiki, it is considered a good buy if positive cash flow is generated with a down payment of less than 35%. Here are this week’s best buy properties.


$295,000, Fee Simple 1 Bed/Bath, Seaside Towers #907, 435 Seaside Ave
Listing Courtesy of Coldwell Banker Pacific Properties, Betty Saleh, RA

$258,000, Leasehold Fee Available, 1 Bed/1 Bath, Waikiki Banyan #2407
Listing Courtesy of Coldwell Banker Pacific Properties, Liza Erickson, R.

$525,000, Fee Simple, 3 Bed/1 Bath, 47-125A Okana Rd, Kaneohe, 63,946 sqft of land
Listing Courtesy of Coldwell Banker Pacific Properties, Teri Lynn Sato, RA

-Abron Toure, RA