Recently, Hawaii’s cheapest property was listed for sale. At first glance, it may seem like a massive bargain. This is because it’s listed for a mere $16,000. Compared to most Hawaii real estate prices, this may not even be enough for a deposit, let alone an entire condo. Nonetheless, that is how much it costs to buy.

For some context, according to Redfin the median Hawaii property is worth over $800,000. So, why is this condo so cheap, and is it actually a good deal? Firstly, this isn’t exactly a mansion. For instance, it doesn’t even have a main bedroom and as seen below, the setup is incredibly basic. If you purchased this then you’d need a bit of money and creative license to spruce it up. Even still, it seems very cheap.

According to the Zillow listing, this condo is a leasehold which isn’t too unusual for an apartment. And this may be where the problem is. If the lease is very low then it could cost a lot of money to extend. In other words, sometimes leasehold properties can be deceptively expensive despite looking like a bargain.

At the same time, this could still turn out to be a bargain. With monthly costs at around $800 per month, this could turn out as a deal if the lease is over 10 years. In other words, you’d be effectively renting this out at a bargain price. As always with cheap properties, sometimes you have to take a gamble if you want a bargain.