My SFH investment s will help me absorb my losses, so it’s a good learning experience.  

Wade returns for non performing notes has tightened and is now in high teens low 20's.

Living in a great travel destination like Sonoma you should consider a duplex or triplex and operate the other unit(s) on AirBNB, VRBO, etc.

I will be a 1st time home buyer , when getting a loan from a bank how do i show them proof of income from my 1099 form/s.

House Hacking Strategy: Living in one unit while renting out the other(s) is a smart way to offset your mortgage.

Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC (you can elect to have a LLC taxed, as a S Corporation which is a whole other conversation).If you want to close in the name of a LLC, Mortgage Lenders will offer you Commercial Loan Terms (25-30% down, a 15-25 year amortization, and a ballon due in 5-7 years).

Your LLC has no "business" other than the asset(s) it owns.

Are you/your partner(s) foreign nationals or non-permanent resident aliens?

When I arrived, I had one interview lined up with a guy in his 70’s.

Hawaiian real estate law differs from other western states significantly, mostly due to its monarchal heritage and the Bishop Trust influence.The basics are the same as would be in California; determine the condition of title ownership (individual(s), estate (including conservatorship, if appropriate) OR fiduciary acting for trust.Use a qualified private money equity lender to make a loan sufficient to buy out the cash-only beneficiaryThe legal community in HI and Big Island in particular is small.