Combine that with the low inventory due to fewer folks moving & selling, and the very low interest rates - that makes for the perfect storm of surging real estate prices and competitive terms.

Amendments passed today:L.020 - Exempts single-family property owners of 5 units or fewer from the bill.

(That comes from 300K ARV minus 25K buy/hold/sell fixed costs minus 60K rehab, minus 30K rehab profit.)Everyone has their own formulas and I acknowledge that I come in a bit on the conservative side, which means I do fewer but safer deals, and I'm OK with that place on the risk/reward curve.

)The key is to stay out of the red danger zone - you never want to be in the intersection of the matrix where something is "almost certain to happen" and the consequences are " Catastrophic"The great thing about using a matrix to solve risk problems is that you can add incremental mitigating factors to lower frequency and or severity and move your target into the area of the matrix where risk is tolerable.Risk tolerance varies.

This is kind of a duplicate, but I was thinking about the issue from another angle today.Since Zillow started charging there are FAR fewer rental listings (at least in this market). 

The veil of an LLC can be pieced pretty easily and so like @Bryan Danger mentioned it's more important to have very good umbrella coverage.Curious why you'd go through the trouble of moving in only for a few months and then rent it out?

There are far fewer Japanese tourists on this island than Oahu or Maui. 

Fewer docs.

From his perspective he saves a lot of time and money -- which also allows him to possibly invest in more properties (assuming he has multiple work crews -- which he does).What are the problems or dangers in this that I'm not seeing ?

The MLS is a great place to find deals and in the current market we're in there are very few multifamily units on the MLS and even fewer worth pursuing.