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).

Cost TrackerLot Purchase Price 20% - 15%Architect & Engineering Plans RenderingSurvey 1 (Stake Corners & Elevation Cert)Surveyor (Final Elevation Cert & Final Survey)County Permit Municipality Utilities District Portable ToiletFoundationSilt Fence Site Work (tree removal / 8in Dirt Scrape)Concrete SlabFramingLumberEngineering Wood Products (Trusses)Accessories & LumberFraming Labor $2.5 per sqftPlumbingPlumbing TurnkeySinksToiletsFaucets & Shower TrimElectricalElectricalHVACHvacInterior Windows & Material Back DoorFront DoorSiding, Sheathing & Cornice MaterialSiding, Cornice, Doors, Window LaborRoofRoof Deck MaterialRoof Deck LaborStanding Seam Metal Roof (optional)InsulationInsulationDrywallDrywallFirewallHang, Tape, Float & Texture LaborDrywall Touch Up LaborPaintExterior PaintInterior PaintExtra Cost (Caulk & Paint Upgrade)CarpentryDoor Handles CabinetsInterior DoorsBaseboards & Shelving (closets, utilities & Pantry)Carpentry LaborCounter TopsCounter TopsMirrors MirrorsGarageGarage Door & OpenerDrivewayDriveway Flat Work (AC Pad, Walkways, Steps, Backyard Steps)TilingTile MaterialTile LaborLVPLVP MaterialLVP LaborRailingRailingLandscapingLandscape Final gradeSODFlower BedDumpsterDumpsterApplianceseDish WasherStoveMicrowaveMiscMail BoxFinal CleaningHouse Plan PrintsWater & Electric During buildRefunds / DepositsRefundable Deposit

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.

I'm trying not to self-promote but rather be helpful here... if you (or anyone) wants a free eBook on investing in self-storage, that includes quite a few value-add ideas, just reach out to me directly.  

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?

Costs of materials can fluctuate, so there are expenses that will be estimated. 2. structure a payment schedule that depends on certain parts of the project being completed.

@Michael Plaks has a great post on this topic.2 - Assess the value of those tax deductions to you: The value of a deduction depends on (a) whether you're actually able to use it to reduce taxable income and (b) your marginal tax rate.As an STR, assuming the average rental period is 7 days or less, key items to consider are: (a) material participation and (b) avoidance of "excessive" personal use.