Used houses in the area sell anywhere from $75-125 a square foot.These are long term rentals that I do not plan to sell.I am reading the Rental Property Investing book and implementing the method that focuses on cash flow and that strategy states you need to have $300 cash flow per month, per property.

My question is why you want to bring it up to code, other than just to feel good or improve your exit strategy?

If you are considering buying using Subject To - Subto, it's important to know what your exit strategy is.Talk to a mortgage broker (not a bank) and ask if that is a property you will be able to get financing on in the event you have to refinance quickly, because the Due On Sale clause was called.AndTalk to a real estate agent about how much you would have to bring to closing in the event you had to sell quickly.

A person can make "big returns" in any/every strategy in existence, as well as making "big losses" and everywhere in between. 

If you are looking to purchase an STR in Hawaii, take a close look at the data.

Buying in your backyard eliminates so much for you.What strategy do want to follow?   

What markets + strategies are you thinking of pursuing?

Appreciation-focused investments can definitely help you grow your portfolio faster through equity gains, but they also come with higher market risks and usually require a strong exit strategy.

Also I’m not sure on the tax implications of settlements but work with a CPA on a strategy.  

A great agent that truly understands what your investing strategy is and the why behind your goals is huge.