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

Hawaii Real Estate Market At A Glance

Stabilizing Sales May Signal A Buying Opportunity

The Honolulu Board of Realtor's August Statistical Report has been released and the market continues to stablize which may signal the bottom of the market.

The report shows that there were 8 fewer single family home sales than last year( 247 vs 255) and 4 more condo sales as compared to prior year( 351 in 2009 vs 345 in 2008). Thus, no significant change in total unit sales vs prior year.

Median Sales Prices were below prior year for both single family homes and condos. $566,000 for single family homes as compared to $635,000 during the same month in 2008 while condos dropped by $38,000 from $290,000 to $328,000.

Since we are seeing a leveling of unit sales and prices continue to drop this may indicate that we are approaching the bottom of market and the end of Stage 4 of the Real Estate Cycle. Here is a breakdown on the 4 Stages.

Stage 1 - Unit Sales Flat, Prices Flat or Down

Stage 2 - Unit Sales Up, Prices Up

Stage 3 - Unit Sales Down, Prices Up

Stage 4 - Unit Sales Down, Prices Flat or Down

Stages 4 and 1 represent the best time for Buyers to purchase real estate since home values will be on the bottom of the median price curve and buyers can reap the rewards when prices go up again.

The average days on market for August was 48 days for single family homes and 51 days for condos. This represents a balanced market for both Buyers and Sellers.

There were 6.5 months of remaining inventory for single family homes and 6 months remaining for condos. 6 months of remaining inventory also represents a balanced market to Buyer's and Sellers.

Take advantage of opportunities in this balanced market, by hiring a knowledgable, experienced Realtor with specific neighborhood and market knowledge to assist you in identifying these opportunities.

- Dwight Ellis, Realtor Associate

Purpose of this blog and schedule of the postings

Welcome to Hawaii Homes at a Glance!

We are professional Realtors committed to educating buyers and sellers on the Hawaii Real Estate Market. 5 days a week we will post information on one or more of the topics below:

1) Market at a glance
2) Best Buy Bargains in Hawaii
3) Foreclosures and Short Sales
4) Financing Facts
5) First Time Home buyers
6) Luxury Homes in Hawaii
7) Investors Forum
8) Hiroshi's Corner

Tune in every day for vital information about Hawaii real estate!