Buying Multi-Units and Investment Property in Hawaii

[Eric Doe]

Good Afternoon! I am hoping someone can help me answer a few questions or offer some experience with properties in Hawaii. We are seeking a multi-unit, potentially to owner-occupy with an available VA loan, but may just settle on fully renting it out.

First, many homes in Honolulu County seem to have a very high assessed (taxed) value - regardless of what the asking price is or recent sales.  Is this common or is this an inflated rate that needs to be formally argued and reduced?  Do you have any experience contesting these assessed values?    

I notice the opposite happens with assessor/market value in other states since the assessed is typically only a percentage of the market value - but there is not rhyme or reason with Hawaii's!   

Also, the Big Island has many properties with multiple units or detached dwellings.  However, the listings frequently state they are not permitted .   Does this mean we will have issues with the county, assessor or bank if we decide to purchase?  Or if we want rent out the attached dwelling or second house?   

I appreciate any input you can offer!