I think a more realistic rehab budget would be something like 85K ($25/sq/ft * 1614sq/ft = $40,350 and then double that for a conservative first flip = $80,700), but I just wanted to be SUPER-ultra-insanely conservative. 

I say modular because the builders are ultra busy there right now.

I think it is comparable to the Allure Ultra that is better for areas with potential moisture (bathrooms, basements, etc).  

I think he's an upstanding guy, just trying to figure out how to make his new turnkey business work after too much publicity, too fast.Like I said, I generally don't like the idea of buying these ultra-low value homes.  

In other words, should I put in the 6-8% in order to be ultra-conservative?

Thanks David, yes it's a great place.... perfect middle ground between the ultra slowness of Kauai and the downtown craziness of Oahu :).

And be ultra conservative on re-sale price.

I don't know if I am right or wrong - time will tell - but I shift from "cautious" to "ultra cautious" mode when I review potential deals. 

Yep, they want skin in the game.If your deal is super - ultra solid, you can get better terms.

And it's ultra turnkey, I only need to put a wash/dry upstairs and it's perfect.