Lastly, cities/towns that have well thought out city planning and/or strict zoning if combined with the aforementioned characteristics will almost always lead to supply pressures that work in your favor. 

Combine that with appreciation and it could be a viable option.I also know of two different multi family properties right near the heart of Kailua Kona that are on the market as well.

My interest in investing in the construction of a new single-family residence (SFR) on the West Coast of Florida was driven by a combination of factors.

Or a combination of other factors I'm not mentioning. 

If you just send the standard "will buy your house for cash" postcards, or do generic bandit signs, or canned PPC internet leads, you will waste all of your time on crap "leads" that aren't real.

It is the only property that I own, and my reason for buying it was because I wanted to have the freedom of renting combined with an ok investment--and that's what has happened. 

However, I think if you decide to do this, you should get some money up front combined with owner financing so you have some skin in the game so to speak.

The result will be cash flow.So if you want to combine the best of both worlds, set up a small business for cash flow and invest in real estate for long term equity.

A private lender would look to the equity in both properties combined, placing a 2nd mortgage on the existing property and a 1st mortgage on the new property. 

Once rents are optimized, the combined monthly rent will be around $4,000.