I'd run your numbers based on that to understand what a realistic offer would be to most people and then see if you can be competitive. 

“Lyons, I love seeing someone with your drive and vision diving into multifamily real estate in LA—you’re in one of the most competitive and opportunity-rich markets out there.

So this is creating more competition and more agreesive rent rates and/or concessions like 1 month free to get those vacancies filled.

You have to offer a great product at a competitive price in this market.

Some towns require a nightly online form to be filled out for any non-residents who are parking their cars (this is easily automated from an operational standpoint).As the MTR market becomes saturated over time, those who have separated themselves from the rest of the "competition" will continue to perform well by having an outstanding listing and all the MTR-specific amenities.

Cities like these offer untapped potential without the intense competition found in larger metros.3.

That's your competition.   

@Deirdre Lizio see a lot of competiting PMCs start with a pledge of doing it better than "what's out there".Always interesting to revisit them 3-5 years later - after they've experienced the reality of challenging tenants AND owners.Look no further than Evernest: they started out with flat fee management at $99/month and promises of better & fairer service & pricing.Now they're at 10%, capped at $199/month - wonder what changed?

if vacant, does it need any work to be rent ready and stand out from the competition?

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.