They keep the late fees per the contract but are doing nothing to collect the uncollected rent; when I pressed the matter they asked if I wanted to proceed with eviction.  

Even with the 70% rule - rehab cost you'd be hard pressed to get out without losing.

But being in a Hot Hawaii market that sells it self, active military with great pay, and with drive in RE investing you can certainly press forward with acquiring good cash flow/appreciation based investment property.

John, I am not too familiar with the official definition of war zones, I have always assumed an area is a war zone if:(1) As I drive through it, all the passengers in the car have a sudden desire to lock their doors...(2) You wish you have a weapon with you, if not, one of those "club wheel locks" you had back in the 80s might help a little...the female passengers finger through their purse to check for their mace or pepper spray.(3) You pray your car doesn't break down, you would never stop to fill your gas tank even if your dash says your gas tank is empty.(4) You check how many bars your cell phone has, you pre-dialed "911" just stop short of pressing "CALL".If some of the above are true I call it a war zone.

My market has turned into a blood bath fighting for rehabs pressing prices above reason, all the while rentals with a vacancy rate of 3% and a solid 5%-7% annual appreciation on rents across the board each of the last 3 years with the only change in sight to be growth to those returns.

Unfortunately neither deal came to fruition, but what I did learn has led me to make corrections and press on.

I am not hard pressed to get the place rented out ASAP due to the fact that this was a cash purchase.

I recommend the books by NOLO Press.

Are the kitchens and baths the cheap pressed board crap or real wood??

There is no pain button they can press to force me to take a position one way or another.