A letter from Max · April 2026

Dad — here's why we're
moving to Honolulu

Months of research, financial modeling, and legal review. Not an impulse — a plan. Here's everything you need to understand it.

$847K
Net from SF sale (MFJ)
$0
Capital gains tax owed
$441K+
HOA liability if we stay
0.35%
HI property tax vs 1.18% CA
Dec 2026
Target move date
Personal note

The letter

April 7, 2026 — San Francisco, CA

Dad,

I've been building this case quietly for months. Not because I wasn't sure about it — but because I wanted to be sure enough that when I showed it to you, you'd see exactly what I see.

The short version: 1835 Franklin is bleeding money. The HOA has hit us with $89,233 in special assessments since 2020, the reserve fund is at 18% funded (industry "distressed" is under 30%), and the board has proposed another $50,000 assessment for 2026. There is no sign it stops there. That's $191,933 in documented crisis costs — and $102,700 more in unfunded reserve liability sitting on the books.

Meanwhile, we're sitting on roughly 13 years of equity in one of the most expensive condo markets in the world — with a §121 exclusion that lets us walk away from the sale completely tax-free (as MFJ). That window is open right now.

Honolulu isn't a consolation prize. Hawaii has lower property tax (0.35% vs. 1.18% in SF), lower state income tax (11% vs. 13.3%), and median single-family home prices around $1.1M on Oahu — meaning our SF equity puts us in a very strong buying position. At $1.5M with 40% down, the 5-year total cost is actually $143,000 less than staying in SF once you count the crisis costs. At our recommended target of $2M at 25% down, it costs $96K more over 5 years — about $1,600/month — and in return we get a family home, $500K in equity at close, and zero HOA exposure forever.

I've built an interactive calculator below and a full slide deck so you can work through every number yourself. I want you to feel as confident in this decision as I do. Use the Input Guide tab to find the exact numbers to enter.

This is not an impulse. This is a plan.

— Max
April 2026 · San Francisco
Why now

The HOA crisis at 1835 Franklin

$441,273+ in quantifiable financial burden — documented from the Association's own records, CPA compilations, and reserve studies.

⚠ $89,233/unit in special assessments since 2020 — with $50,000 more proposed

The reserve fund collapsed from 52.5% funded (2022) to 18% funded (Feb 2026) despite collecting $1.77M extra. Deferred maintenance for FY2027 alone is $3.07M. 18 Davis-Stirling violations documented in a formal March 2026 compliance review.

$102K
Unfunded reserve liability per unit
$3.07M
Deferred maintenance FY2027 (building-wide)
697%
Reserve overspending FY2024 vs. budget
18%
Reserve funded (vs. 30% "weak" threshold)
Cost of living

San Francisco vs. Honolulu

Honolulu is not cheap — but the comparison is better than most people expect, especially once you factor in the HOA exposure.

San FranciscoStaying
State income tax (top rate)13.3%
Property tax (effective)~1.18%
Median SFH price~$1,650,000
2BR rent$4,200–$5,100/mo
HOA monthly$2,120 — rising
Est. monthly housing total$5,738/mo
+ Crisis costs (5-yr)+$191,933
Honolulu (proposed)Moving
State income tax (top rate)11.0% (−2.3 pts)
Property tax (effective)~0.35% (−0.83 pts)
Median SFH price (O'ahu)~$1,112,500
2BR rent$2,600–$3,500/mo
HOA monthly (SFH)$0 (no HOA)
$1.5M at 40% down$6,377/mo
Crisis costs$0
The asset

1835 Franklin St — 13 years of equity

Purchased in 2013 for $930,000. The §121 exclusion means the entire gain is tax-free as married filing jointly.

Expected sale price

Feb 2026 SF condo median $1.225M (+11.87% YoY), closing 4.3% over asking on average.

~$1,400,000

Net proceeds (est.)

After 5.5% commission, 2.25% SF transfer tax, 1.25% other costs, and ~$426K mortgage payoff.

$794K–$847K

Capital gains tax (MFJ)

13 years as primary residence. Full $500K §121 MFJ exclusion covers the entire $470K gain.

$0

Recommended scenario

$2M home at 25% down — fits under the 28% lending rule at 27.6% of $450K combined income.

$2M / 25% dn
The roadmap

April → December 2026

  • Apr–May 2026
    Lay the groundwork
    Hire SF listing agent, Honolulu buyer's agent, Hawaii lender. Pre-approval in hand. Declutter 1835 Franklin, gather HOA disclosure package, order pre-list inspection.
  • Jun–Jul 2026
    List the condo + start Honolulu search
    List at $1,375K–$1,425K. Begin active Oahu search with mortgage pre-approval. Pro photography, 3D tour, open houses. Target: multiple offers.
  • Jul–Aug 2026
    SF in escrow
    Accept offer and enter ~30-day escrow. Narrow Honolulu neighborhoods: Kailua, Hawaii Kai, Aina Haina, Manoa. Be ready to write offers once SF closes.
  • Sep–Oct 2026
    Go under contract in Honolulu
    30–45 day Honolulu escrow. Lock moving company and shipping dates. Complete inspection, condo docs review (if applicable), loan approval.
  • Nov–Dec 2026
    Close, move, and settle
    Close Honolulu, take possession. File homeowner's exemption before September 30. Switch licenses, voter reg, bank accounts to establish Hawaii residency.
Interactive calculator

Run the numbers yourself

Every assumption is adjustable. Not sure what to enter? Check the — it has the exact figures from the full analysis.

SF → Honolulu RoadmapStep 1 of 5
1. SF Property
2. Sale
3. Finances
4. Honolulu
5. Summary
Step 1 of 5 — Your SF Condo

1835 Franklin St property details

Estimates your tax basis, §121 exclusion eligibility, and monthly carrying costs.

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Step 2 of 5 — Sale Strategy

Pricing, commissions & timeline

Estimate your net proceeds after all selling costs.

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Estimated Net Proceeds
Sale price
Commission
SF transfer tax
Other seller costs
Loan payoffs
Net proceeds
Step 3 of 5 — Household Finances

Income, savings & monthly budget

Used to calculate mortgage affordability and post-move reserve position.

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Estimated Monthly Expenses (Honolulu)
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Affordability Check
Gross monthly income
28% housing ceiling
36% total debt ceiling
Less non-housing debts
Max housing/mo
Step 4 of 5 — Honolulu Purchase

Search criteria & purchase budget

Carrying costs for your Oahu home. Recommended: $2,000,000 at 25% down.

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Estimated Cash to Close
Down payment
Buyer closing costs
Setup & move-in
Moving & shipping
Total cash needed
Step 5 of 5 — Complete Overview

Complete financial overview

Review with your agent, lender, and CPA before making decisions.

Complete steps 1–4 to generate your full summary.

SF Property
Sale & Proceeds
Household Finances
Honolulu Purchase
Cash Position
Affordability
Proposed Timeline
Reference guide

What to enter in the calculator

This page pulls every number from the full analysis so you don't have to guess. Work through Steps 1–5 in the calculator using these exact figures.

1
SF Property Details
Unit number1001
Year purchased2013
Original purchase price$930,000
Major improvements$0
No capital improvements to add to basis
Remaining mortgage balance$426,468
After 13 years of payments at 2.50%
Other liens / HELOC$0
Monthly HOA dues$2,120
Up from $1,830 in three years (+15.8%)
Ownership & use period5+ years
13 years as primary residence — §121 exclusion confirmed
📍 Adjusted tax basis: $930,000. CPA may add original purchase closing costs (title, recording fees) — confirm with your advisor.
2
Sale Strategy
Expected sale price$1,400,000
SF condo median $1.225M (+11.87% YoY); units closing 4.3% over asking Feb 2026
Agent commission5.5%
= $77,000 at $1.4M
SF documentary transfer tax2.25%
= $31,500 at $1.4M
Other seller closing costs1.25%
= $17,500 at $1.4M
Target listing monthJune 2026
Escrow length30 days
Rent-back periodNone
Bridge / overlap period1 month
Net proceeds at $1.4M:
$1,400,000 − $77,000 (commission) − $31,500 (transfer tax) − $17,500 (other) − $426,468 (payoff)
 = $847,532 net (MFJ)  |  $794,072 net (single)
§121 Capital Gains: Total gain = $470,000 ($1.4M − $930K basis). MFJ exclusion = $500K → $0 tax owed. Single exclusion = $250K → ~$53,460 tax.
3
Household Finances
Combined gross annual income$450,000/yr
Max + Devna combined
Gross monthly income$37,500/mo
Cash & savingsEnter your figure
SF net proceeds ($847,532) are auto-added by the calculator
Devna's contribution$40,000
Add to "Other liquid assets"
Non-housing debts/mo$0
No car loans, student loans, or other monthly obligations
Groceries/dining (HNL est.)$1,100–$1,450
Use $1,200 (midpoint) as default
Utilities (HNL est.)$350–$500
Use $400 (midpoint); electricity $0.39/kWh in Hawaii
Transportation$250–$400
Car insurance $1,670–$1,710/yr in HI vs. $2,200–$2,600 in SF
Health insurance$380–$570
Emergency reserve6 months
28/36 lending rule at $450K income:
28% housing ceiling = $10,500/mo
36% total debt ceiling = $13,500/mo
No other debts → 28% rule is the binding constraint.
4
Honolulu Purchase
Recommended target price$2,000,000
Recommended down payment25%
= $500,000. Mortgage = $1,500,000. P&I = $9,481/mo at 6.5%
Mortgage rate6.5%
Current 30-year fixed market rate (April 2026)
Buyer closing costs3%
= $60,000 at $2M
HOA dues (SFH, no HOA)$0
Targeting fee-simple single-family home — no HOA
Setup / move-in costs$30,000
Furnishings, repairs, setup
Moving & shipping (ocean freight)$15,000
40ft container $9K–$16K; vehicle $1K–$1.5K per car
Property tax rate (HNL)~0.35%
Owner-occupied rate; file homeowner's exemption after close
Recommended scenario output:
Housing/mo: $10,364  |  27.6% of income (under 28% ✓)
Cash remaining: $277,532  |  Surplus above 6-mo reserve: $196,146
Home equity at close: $500,000
All modeled scenarios

Price × down payment matrix

All scenarios passing the 28% lending rule with ≥$25K surplus above a 6-month emergency reserve. Combined income $450K/yr, $887,532 available cash (MFJ net + Devna contribution). ★ = recommended.

Price Down % Mortgage P&I / mo Housing / mo % Income Cash After Surplus Status
$1.50M40%$900K$5,689$6,37717.0%$192K$135K✓ Pass
$1.50M35%$975K$6,162$6,85018.3%$268K$207K✓ Pass
$1.50M30%$1.05M$6,637$7,32519.5%$343K$279K✓ Pass
$1.75M30%$1.225M$7,748$8,55322.8%$260K$190K✓ Pass
$1.75M25%$1.3125M$8,296$9,10624.3%$348K$274K✓ Pass
$1.90M25%$1.425M$9,010$9,86126.3%$306K$227K✓ Pass
$2.00M25%$1.50M$9,481$10,36427.6%$278K$196K★ Recommended
$2.00M30%$1.40M$8,849$9,73226.0%$178K$100K✓ Pass
$2.00M20%$1.60M$10,113$10,99629.3%$378K$292KOver 28%
5-year total cost comparison

Staying in SF vs. moving (all down payment options)

SF total includes $191,933 in documented HOA crisis costs (SAs paid + pending SA #3 + unfunded reserve liability). Mortgage rates: SF 2.50% (locked 2013), HNL 6.5% (current market).

ScenarioHousing / mo5-yr Housing+ Crisis Costs5-yr Living5-yr Grand Totalvs. SF
SF — Stay$5,738$344,280+$191,933$181,500$717,713
HNL $1.5M / 20% dn$8,273$496,350$0$192,000$688,350−$29K
HNL $1.5M / 30% dn$7,325$439,470$0$192,000$631,470−$86K
HNL $1.5M / 40% dn$6,377$382,590$0$192,000$574,590−$143K
HNL $2.0M / 25% dn ★$10,364$621,840$0$192,000$813,840+$96K
HNL $2.0M / 30% dn$9,732$583,920$0$192,000$775,920+$58K
HNL $2.5M / 20% dn$13,720$823,200$0$192,000$1,015,200+$298K
SF's real cost: The $5,738/mo SF figure does not include the $50,000 pending special assessment, the $102,700 unfunded reserve liability per unit, $39,233 already paid in prior assessments, or ongoing monthly HOA increases. The real 5-year SF housing cost is $536,213 — not $344,280.
What selling permanently removes

$441,273+ in eliminated financial burden

Item eliminatedAmount
Special assessments already paid (SA #1 + #2)$39,233
Pending special assessment #3$50,000
Unfunded reserve liability per unit$102,700
Monthly HOA ($2,120/mo, rising 8–10%/yr) over 5 years$127,200+
Deferred maintenance exposure (pro-rata ~$68K/unit)~$68,140
State income tax premium (13.3% vs 11% × 5 years)~$23,000
Property tax premium (1.18% vs 0.35% × 5 years)~$31,000–$43,000
Total quantifiable burden eliminated$441,273+
Quick cheat sheet

Enter these numbers in the calculator →

Steps 1 & 2 — SF Sale
Purchase price (2013)$930,000
Mortgage remaining$426,468
HOA dues/mo$2,120
Expected sale price$1,400,000
Commission5.5%
Transfer tax2.25%
Steps 3 & 4 — Finances + HNL
Combined income$450,000/yr
Other liquid (Devna)$40,000
Non-housing debts$0
Honolulu price (rec.)$2,000,000
Down payment (rec.)25%
Mortgage rate6.5%
HOA (SFH, no HOA)$0