Wants $0 down I would like to take the property over using Sub-2 then possibly sell it on a lease purchase for $175k with a $15k option fee.Is this the correct strategy to use?

talk to your team members CPA and asset protection attorney to get set up correctly 

@Wiley Strahan There are few lenders who offer this program which help borrowers to bid on the property because Realtors knows this is sold buyer with appraisal condition open only. 

The market appreciates well above the national average but we are due for a correction even in Hawaii.

See: https://www.phila.gov/li/pdf/Code%20Bulletins/Cert...In most cases, if the U&O is clear, you have a rental license in hand for the correct number of units as you expect to rent (if applicable), and there are no open permits on the property (check: www.phila.gov/li) then that's all you need.

The attorney is probably correct, the property is probably a victim of robo signing.

We are in escrow and we paid our mortgage lender for an appraisal but the appraisal had no analysis, only photos, this doesn’t offer any information, only a subjective visual report, correct?

I don't see the indicator of a big correction yet, but the data I've read recently shows the above indicators, which are all signs of a correction looming, even if it is small.Thoughts?

If they counter or accept THEN have a contractor go out and get a bid.

Not only is this not correct but I certainly also don't believe that $1200 per year is sufficient.- With ~18K for expenses and ~63K of income, that works out to ~29%; extremely unlikely (to the point that I would buy a lottery ticket first - at least I would know what I am going to loose ;).