As for writing it off on active income, you’d still need to qualify as a REP (or spouse) or have material participation.  

They may have materials.

The huge bonus of this property was it was coming with all existing materials inside including, condensers, lumber, electrical wiring, as well as pex and PVC for the plumbing.

I know you need 750 material hours per year (As well as over 50% of hours in real estate business).

The issue I have and seen being thru several hurricanes in Florida is that once a hurricane passed and there is damage, most contractor's raise their fees as well as materials.

1) Will you lose material participation in the cost segregation if your property is in a neighboring state?

I'm cautious about flips given the materials cost in Hawaii, but trying to manage it from the mainland where I currently live (though i'm considering moving to Hawaii to live in a multi-unit I may own).

Everything Paige said and a few more.All vehicles must be licensed, tabbed and operableNo water beds, pools, portable heaters, portable dishwashers, portable clothes washers or dryers shall be used on the premises without prior written consent of agent/owner.No dust, sand, dirt, rubbish, coffee grounds, feminine products or other foreign material shall be flushed or washed down toilets,sinks, or wash basins.

This might mean using cheaper materials or rushing the job, which can affect the durability and quality of the renovations.3.

so my first out of state investment property is current $7000 over budgets and looks like I have about another $8500 plus materials to go. thoughts?