This progress has been a blessing, and we’re committed to continuing on this path.

Quote from @John Busch: Truly appreciate the multiple responses and look forward to continuing our communication as we live in Southern CA and do not have many contacts in that part of the county. 

I thought I was buying at top of the market in 2020...and 2022...but prices continue to remain high. 

I’ll continue to research the area.

I wish you great luck on continuing to build up your farm.

I can only speak to myself personally but I've continued to invest, knowing properties may not cash flow much but I've invested in value-add so focusing on appreciation.

At this point, instead of continuing to pay the interest loan payments on properties that we will never be able to financially finish since the rehab loans will not cover the actual cost of the rehab, I wanted to know the ramifications of returning the properties to the loan servicer, deed in lieu.

I'm unclear why you would continue paying for something that was not what you were told. 

To me STR and hotel caters to different groups of travelers and so despite competition as long as the travel demand of Hawaii remains (as you pointed out is a robust assumption) I think both will continue to do well.  

When you do that, you can get better pricing and leaves less room for error.The best advice is to push forward as quick as possible, fail forward, and always continue to introspect on what you would do differently and then ACTUALLY go back and implement that change (easier to say than do).