I live on the Windward side of Oahu as well, and had the same criteria as you when I first arrived. 

When they did arrive, they had to come back twice and the problem still was not solved.

Ask for the real estate meet up when you arrive, the room will be upstairs. 

In calculating the Net Present Value of the investment, what is the appropriate methodology to use in arriving at a discount rate?

The 'got-aways' cannot be counted.And no, the majority of these new arrivals do not want to work.

You'll put 20-30% down, depending what the bank requires, you have some for closing costs, and perhaps a bit for fixup (not a fixer-upper home...but no property arrives perfect).  

Tossing a bunch of rules at folks and not pumping up that enjoyment in the pre-arrival communications is a huge missed opportunity.

This method allowed me to arrive at a favorable cash-on-cash return, ensuring a sound investment decision.

How did you arrive at the $40k number?

her and her husband both retired from their day jobs and have all these gorgeous renovated SFRs. the key was that they got better and better at BRRRing and the nest egg grew just a little bit with each cashout/refi, so they could do bigger/better deals, then multiple deals at once. this obviously took time, but they're getting ALL the perks of REI: debt paydown, appreciation, tax benefits, cashflow, the opportunity to provide beautiful safe housing in the city they live in... if you BRRR'd your way to a few STRs instead of LTRs, you could probably arrive at that 7k/mo number pretty quick. also consider BRRRing to MTRs. gator lending is short-term / transational lending, usually to wholesalers for deposits. pace morby has a course on it. most people i'm sure take the course, do nothing with the information, make no money, then complain and say the course didn't work lol. but i do know tons of people actually make great money gator lending.flips obviously work too but you usually LOSE money on the first one, break even if you're fortunate... it's very active work too, so doing flips while you're still working full time, idk, not a fan personally. you'd have to KEEP flipping to KEEP making 7k/mo, vs with BRRRing you'll eventually get to that 7k/mo and can stop or regroup.