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The Case for Honolulu

A Roadmap by Max Cash · April 2026

Sell 1835 Franklin St  ·  Buy in Honolulu  ·  Close by Year-End

Executive Summary

Dad — Here's the Plan

🏠
The Move
Sell 1835 Franklin St (Pacific Heights, SF) — buy a 3–4BR family home in Honolulu before end of 2026.
💰
The Financial Outcome
Net $794K–$848K from the SF sale. Eliminate $441,273+ in HOA crisis exposure. Enter a sound asset.
📊
The Preparation
Months of detailed financial modeling, market research, legal review & tax analysis. This is not an impulse.
📅
The Strategy
Overlap SF sale and Honolulu purchase inside a single calendar year. Both escrows run 30–45 days.

The Asset Being Sold

1835 Franklin St — 13 Years of Equity

Property Facts
Purchased2013 · $930,000
Original Mortgage$650K at 2.50%
Remaining Balance~$426,468
Monthly HOA$2,120 (↑ 15.8% in 3 yrs)
Primary Residence13 yrs · §121 qualified
Equity Buildup
Down Payment (2013)$280,000
Principal Paid~$223,532
Market Appreciation+$470,000
Total Equity~$973,532
$1,400,000
Estimated Sale Price
$847,532
Net Proceeds (MFJ)
$0
Capital Gains Tax (MFJ)

Why Staying Is the Risk

The HOA Crisis: $441,273+ in Exposure

Special Assessment History
2020
$9,500
Nov 2023
$29,733
2026 ⚠
$50,000
Cumulative per unit$89,233
Reserve Fund Collapse
Mar 202252.5% funded
Mar 202439.7% funded
Mar 202519.9% — HIGH RISK
Feb 202618% — CRITICAL
Industry "Weak" threshold: below 30%. 18 Davis-Stirling violations documented.
$102,700
Unfunded Reserve
Liability Per Unit
$3.07M
Deferred Maintenance
FY2027 Alone
697%
Reserve Overspending
FY2024 vs. Budget

Cost of Living

San Francisco vs. Honolulu

🚨 San Francisco (Now)
State income tax (top)13.3%
Property tax (eff.)~1.18%
Median SFH~$1,650,000
Rent (2BR)$4,200–$5,100/mo
Car insurance (annual)$2,200–$2,600
Monthly total (est.)$7,100–$9,350
✅ Honolulu (Projected)
State income tax (top)11.0% (−2.3 pts)
Property tax (eff.)~0.35% (−0.83 pts)
Median SFH (Oahu)~$1,112,500
Rent (2BR)$2,600–$3,500/mo
Car insurance (annual)$1,670–$1,710
Monthly total (est.)$5,630–$7,820
$4,600/yr
State Income Tax Savings
$6,000+/yr
Property Tax Savings
$1–2K/mo
Total Monthly Savings

The Recommended Scenario

$2M at 25% Down — The Sweet Spot

Combined income: $450,000/yr · $847,532 (Max) + $40,000 (Devna) = $887,532 available

Purchase Structure
Purchase price$2,000,000
Down (25%)$500,000
Mortgage$1,500,000 @ 6.5%
Monthly P&I$9,481
Total housing/mo$10,364
% of gross income27.6% ✓
Post-Close Position
Home equity at close$500,000
5-yr equity (principal)~$595,835
Cash remaining$277,532
6-mo emergency reserve$81,386
Surplus above reserve$196,146
HOA/SA exposure$0

"$2M opens the door to quality 3–4BR homes in Kailua, Hawaii Kai, Aina Haina, and Manoa. Under 28% lending guideline. $196K surplus above a fully funded emergency reserve. $441,273+ in HOA crisis exposure eliminated."

The 5-Year Math

Staying vs. Moving: Total 5-Year Cost

5-Year Grand Totals (20% Down Scenarios)
SF — Stay
$717,713
HNL $1.5M/20%
$688,350
HNL $2.0M/20%
$851,780
HNL $2.5M/20%
$1,015,210
$1.5M at 20% down vs. staying in SF
$29,363 CHEAPER
while gaining 3–4BR family home + eliminating $191,933 crisis exposure
SF true 5-yr housing cost (incl. crisis)
$536,213
$344,280 base + $191,933 crisis costs. Even $2M/30% dn is competitive.

Risk Elimination

What Selling Permanently Removes

✅
SAs already paid (#1 + #2)
$39,233
✅
Pending Special Assessment #3
$50,000
✅
Unfunded Reserve Liability
$102,700
✅
HOA Dues ($2,120/mo, ↑8–10%/yr)
$127,200+ over 5 yrs
✅
State Income Tax Premium
~$23,000 over 5 yrs
✅
Property Tax Premium (1.18% vs 0.35%)
~$31–43K over 5 yrs
$441,273+
Total Quantifiable Burden Eliminated — Regardless of Which Honolulu Price Point

Lifestyle & Family

The Best Place to Raise a Family

🏥
Healthiest US City
Ranked #2 nationally · 98% child health insurance coverage
🔒
Safer Community
Crime 7% below national average vs. SF's ongoing public safety crisis
☀️
277 Sunny Days/Year
Year-round outdoor living · beaches, hiking, paddleboarding for kids
Target Neighborhoods for Families
KailuaB+ · Beach · Excellent schools
Hawaii KaiA · Family · Marina · $845K+
MililaniA− · Top schools · $515K+
Aina Haina / ManoaB+ · Community feel · UH area
Why SF Can't Compete
✗ Tent cities and public safety concerns persist
✗ SFUSD school quality declining, enrollment falling
✗ 216,000 net residents fled CA in 2025
✗ 13.3% state income tax crushing middle class

The Action Plan

April → December 2026: 5 Phases

Phase 1 · Apr–May Lay the Groundwork

Hire SF listing agent, Honolulu buyer's agent & Hawaii lender. Budget modeling. HOA disclosure package assembled. Lead paint disclosure prepared.

Phase 2 · Jun–Jul List SF + Start Hawaii Search

Pre-list inspections, staging, professional photography & 3D tour. MLS live. Begin active Honolulu search with pre-approval in hand.

Phase 3 · Jul–Aug Under Contract in SF

Accept offer → ~30-day escrow. Narrow Honolulu neighborhoods. Negotiate rent-back if overlap time needed.

Phase 4 · Sep–Oct Under Contract in Honolulu

Target 30–45 day HI escrow. Lock movers & ocean freight. Sept 30: Homestead exemption deadline. J-1 inspection & loan approval.

Phase 5 · Nov–Dec Close, Move & Settle

Honolulu closing → take possession. Switch DL, voter reg, bank accounts. Establish Hawaii residency. Welcome home. 🌺

🌺

The Four Numbers That Matter

$847K
Net from SF Sale (MFJ)
$441K+
HOA Burden Eliminated
$500K
Starting Home Equity
$196K
Cash Surplus Above Reserve

Both cities are expensive. But only one of them is worth it.

"The question isn't whether Honolulu costs more per month. It's whether to pay a predictable mortgage on a sound property — or a lower mortgage on a building with $191,933 in crisis costs, $3M in deferred maintenance, and 18 statutory violations."

This plan is built on research, not impulse. Let's talk through it.
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