You might decide that you absolutely want to own your own residence there and I assume you can afford it since you already own properties elsewhere, likely in beautiful Hawaï.

If they seem agreeable, then you can ask if they would prefer to cut the cost down the middle or would they prefer to purchase the supplies and you will assume the cost of labor to install it. 

Just underwrite a refinance assuming about 30-36% of the money you will receive goes to refinance closing costs at worst, and find discounts when you can.

I am assuming this is in TEXAS (I am editing this as I thought I was in the Austin Fourm, I understand now that you might not be in Texas)  as each state has their own set of laws that property managers must follow.  

Tenants must be 55+ so assumed that tenants wouldn't be problematic.How did you find this deal and how did you negotiate it?

If they’re underfunded, you could get hit with special assessments.Not sure about the exact contract with the tenants, but I assume if there is any additional assessment, it would be tenants’ responsibility.Since you want to stay local and focus on cash flow, commercial makes sense, but have you considered industrial or flex space? 

Assuming this is an 8 cap neighborhood you'd have a ~$420-450k value within a year (unless property taxes are crazy high) when leases would renew since it'd be valued as a commercial building with the office space.

If they have a good interest rate it might be worth looking to see if you could assume their loan to take advantage of the lower rate.  

@Anthony Zotto - By the way you ask the question I assume you're going to self manage the property instead of using a property manager.

I ran some of your numbers, assumed rent of $1,290/unit and that you pay cash for the rehab costs.