If you are going to do direct to seller then yes, worth it!

@Huggy Ford, I would be interested in running an analysis of need to know what's in the highest demand for that location.

If you offer more $ for the property than the all cash offers AND you appear to the seller to be highly qualified in the method you are using for sourcing the payment, at some point your offer will be more appealing than the all cash offers.I don't understand why you would consider a 1031 for another property in two years. 

I had a chat with them on the phone as i was curious about the funding.. but came to the conclusion that the down payment ( the client made to buy) was probably what they paid for the property and the seller carry back note was the profit.. and then the seller carry back note is sold to yet another investor.. who is investing for coupon money.   

If any of the proceeds touch the sellers hand the IRS sees it as taking profit and you will have to pay taxes on that portion.Net proceeds - Is the net sale, minus any Equity in home being sold.I find a lot of investors who want to purchase less than their reinvestment requirements will do the calculation to see what their tax burden would be if they purchase less than they sell.

When it comes to AirBnB I have found its location, number of beds then amenities like kitchens and outdoor spaces that attract quality guests and demand higher prices. 

Do you think it will affect the types of deals they pursue, or will the demand for flexible financing options like private lending continue to grow regardless?

To me STR and hotel caters to different groups of travelers and so despite competition as long as the travel demand of Hawaii remains (as you pointed out is a robust assumption) I think both will continue to do well.  

Going direct to seller in pre-foreclosure and snatching it before auction sale.

With fluctuating interest rates, tighter lending criteria, and increased competition for properties, securing the right financing has become a key factor in closing deals and maximizing ROI.Are you exploring creative options like BRRRR, partnerships, or seller financing?