RentalCalcs Editorial · Research edition October 18, 2026 · Free worksheet
Hawaiʻi apartment underwriting
Property / address / analysis date:
Blank diligence form. Values entered here stay in this browser document and are not saved or transferred. Cap references are dated research, not a property appraisal. Income, sale price and cap must describe the same asset and NOI convention.
1. Reconcile buyer income, costs and invested cash
| Purchase price ($) | |
|---|---|
| Scheduled annual rent ($) | |
| Vacancy / concessions / collection loss ($) | |
| Other verified operating income ($) | |
| Buyer property tax ($) | |
| Insurance: premium and deductible liquidity ($) | |
| Management / payroll ($) | |
| Recurring repair / utilities / administration ($) | |
| GET: taxable base, surcharge, pass-through and owner cost ($) | |
| Land rent / association charges if applicable ($) | |
| Total recurring operating expenses ($) | |
| Annual NOI before debt and reserve ($) | |
| Going-in cap: NOI ÷ price × 100 (%) | |
| Loan / interest / amortization / balloon term | |
| Annual debt service ($) | |
| Annual replacement reserve below NOI ($) | |
| DSCR: identify lender reserve convention | |
| Debt yield: lender NOI ÷ loan × 100 (%) | |
| Down payment + closing + immediate work ($) | |
| Annual cash after debt / reserves ($) | |
| Cash-on-cash: annual cash ÷ invested cash (%) |
Recurring repairs reduce NOI; major initial work increases acquisition cash; replacement reserves are below NOI here. Loan reserves and lender NOI may differ. Bind insurance and verify buyer taxes before using the cash return.
2. Resolve the local evidence
- Confirm tenure and lawful use. Fee-simple, leasehold, condominium and transient operations need different income models.
- Rebuild island-specific expenses. Include GET treatment, insurance and any land-rent or association obligations.
- Match the sale cohort. A five-sale median and active-listing median are separate references, not a universal spread.
No island-weighted statewide average, neighborhood cap curve or current matched-series apartment operating survey was established. Hawaiʻi County and Honolulu ACS rent references are older and broader than the sale sample. Maui/Kauaʻi conventional apartment yields remain unverified. The Q1 median’s +59bp move is a cohort comparison, not a repeat-property value loss.
3. Record comparable sales without blending cohorts
| Property / sale date | Price / asset scope | NOI basis / cap | Buyer costs / missing evidence |
|---|---|---|---|
4. Write what would change the thesis
| Compression | Matching sale NOI, actual loan offers and renewal collections. |
|---|---|
| Stabilization | Cohort size, tenure, marketing time and buyer-adjusted expenses. |
| Expansion | Binding policies, permitted use, association obligations and refinance coverage. |
Starting annual NOI / entry cap:
Exit NOI / exit cap / value:
Value = annual NOI ÷ (cap ÷ 100). Example: 5% → 6% is +100bp and −16.7% constant-NOI value. 20% cumulative NOI growth offsets that move before sale costs. Specify cumulative versus annual growth. Add debt payoff, selling costs, taxes and interim cash flow separately.
5. Documents still needed and next action
- Hawaii Multifamily Advisor September update — July 2026 closed sales; September inventory snapshot
- Hawaii Multifamily Advisor May update — Q1 2026 versus Q4 2025
- UHERO Hawaiʻi Housing Factbook 2026 — 2024 ACS rent; 2025 housing data; 2026 policy/cost discussion
Full source lineage and dates: vouchermatch.com/rentalcalcs/cap-rates/hawaii. Follow current county/city rules; no statewide tax percentage, insurance premium or universal good cap is assumed.