*Have a USP right of the bat to convert leads*Have a huge/constant flow of leads from investors, sellers, partners, etc.If I was doing it for houses, I'd do the same thing, just work on the leads.

Are there any house at that price point that would rent for $1200-1500/ month with 20k worth of updating?"

Stats can be foundhttps://www.ramaui.com/housing-statisticsOr for all islands herehttps://www.hawaiirealtors.com/resources/housing-trends-2/Your realtor can produce more specific stats on your area of interest.

If you have significant equity in your house sell it

Even if such a loan existed (which I doubt), once Vincent self funds all improvement costs, finance charges, carrying costs etc., I doubt he's any better off.

I know in Philadelphia if I had a 2 BR house it would be viewed favorably by tenants who are seeking 2 BR living situations because most inventory will be apartment style living and for this reason would achieve a rent premium.

If you take this housing away from these people where do you intend to have them live; in the streets, underneath freeway overpasses? 

I have to flip an entire house to make $12k, but an agent makes that in a couple hours without having to leave their home?!?!

Many people buy a house with a FHA loan and then turn it into a rental but it doesn't mean it's always allowed.

You don't want to distract the buyers from the house with too many items or stuff.