First-Time Investor Acquires 7-Unit Wahiawa Building

$100,000 Below Asking, With Built-In Upside

Our client set a goal to invest in their first multifamily property to create long-term wealth for their family.  They found us through our website, hawaiimultifamilyadvisor.com and we immediately connected.  After an initial advisory session covering the fundamentals of multifamily ownership, we got her qualified and began identifying opportunities within their budget and target area, Wahiawa, Oahu.  They utilized their home equity to invest and execute a value-add business plan.

Project Highlights

• Property Type & Size: A 7-unit multifamily property consisting of a 6-1bd/1ba unit apartment building and a separate 1bd/1ba cottage situated on a 4,675 square foot A-2 zoned lot.
• Prime Location: Situated in desirable Wahiawa, HI., located in the heart of Central Oahu offering strong rental demand and a scenic environment.
• Acquisition Price: $1,100,000.
• Nearby Landmarks: Minutes from Schofield Barracks, Wheeler Army Airfield, Wahiawa Shopping Center, Dole Plantation, and North Shore access routes.

Challenges Faced

This transaction required navigating multiple layers of complexity:

• Navigating a Competitive Bidding Process: Offered $100K below asking ($1.2M list price)  Seller received higher-priced backup offers during our escrow.
• Physical Challenges: Due diligence uncovered an abnormally high water/sewer bill relative to the property size. Traced to leaking fixtures and running toilets throughout the building.
• Creative Financing Structure: Financing required creative structuring via a DSCR loan rather than a conventional local bank product.
• Time is of the Essence: Appraisal and funding timing issues threatened to derail the transaction timeline.

Advantages Secured:

•          Acquired at a Discount: Purchased for $100,000 below asking price and appraised value.
•          Value-Add Strategy: An opportunity to re-tenant, increase rents to market, and improve gross rents by 18.5%.
•         Plug the Leaking Expenses: Plumbing repairs will reduce utility expenses and increase total net cash flow.
•          Path Towards Generational Wealth: First multifamily asset secured, the path towards generational wealth building begins.

About Wahiawa, HI

Located in the heart of Central Oahu, Wahiawa is known for its cooler climate, lush surroundings, and strong sense of local community. Positioned between Honolulu’s urban core and the world-famous North Shore, Wahiawa offers residents convenient access to beaches, military installations, and major transportation routes while maintaining a quieter residential atmosphere. The area is home to a mix of long-time local residents, military families, and workforce housing demand, making it an established and resilient rental market within Oahu. Nearby landmarks include, Scholfield Barracks, Wheeler Army Airfield, Dole Plantation, and easy access to the North Shore.

Client Testimonial:

"Grateful we were able to navigate the challenges of this deal, and that we got $100,000 off the list price and the opportunity to build generational wealth for our family." — V. Corbett