A few things to consider as an out-of-state investor are having a reliable local team or friends who could check in on the property and understanding the local rental laws.

You could also draft your own based on the law, see RCW 59.18.365. 

My sister in law is publishing books for children telling illustrated stories based in Hawaii.

Duplexes can be a fantastic way to generate cash flow-just watch zoning laws, hire reliable contractors, and stay updated on rental trends.

I looked at Law Depot online but that template won't work for us as it requires an interest rate to be input.

However, structuring this in a way that complies with tax law would likely require expert legal and tax guidance, as it involves partnership agreements and IRS regulations.

@Melanie P.There are companies out there like buttonwood, factright and mick law who do due diligence reports already.

@Kristjan MeitzFor out-of-state properties, a property management company is recommended for tenant relations, repairs, rent collection, and compliance with local landlord laws.

An insurance broker explained this to me in the past as the law of  large numbers which suggests if a a carrier has significant enough exposure in a market the probability of claims arising will be more consistent with probabilities calculated in their underwriting than a when a smaller sample size were to exist.

I went to the Town Hall and asked if they had a law on the books and spoke with an individual who said my municipality has a "love hate relationship" with vacation rentals.