I believe if people make money and there is sufficient housing supply, housing will become affordable. 

I would suggest looking in Columbus Ohio for so many reasons - population growth, job growth, and companies moving here.

It is my understanding that the 5 day notice is not sufficient by certified mail if the tenant never signs for it.

Hard money costs do eat into the profit but a good hard money lender will want to make sure you are making a sufficient profit on the deal after holding costs, etc. 

You have many options here.1) Terminate the lease: It clearly states that they must have renter's insurance and the lapse can result in a default2)Have them cover the damages with sufficient evidence that they caused it3) Claim it on your insurance for the property, likely they won't give a good payout unless a fire, flood, or some sort of wind damage.

The only thing that might give me pause would be if I did not have sufficient capital on a building that was older but had appeared to have significant maintenance issues when I was looking at it to buy.

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.

$120,000/0.06 equals $2,000,000.So in my mind the target should NOT be cash flow but rather building net worth.Despite what the gurus say, sufficient cash flow to be financially free can only come once one has sufficient capital to invest.Let’s be clear I only buy apartment propeties that cash flow but immediate cash flow to put spendable dollars in my pocket is NOT the primary goal.

That's sufficient.

Now i am capped at the rent increases i can provide to encourage them to give notice (one reason it is important to keep rent near market rent) and i no longer have the option to not renew their lease.there is a reason spa very large percentage of economists are anti rent control.