5.5% seems very short in todays market . how many points ? 

The long-term benefits seem promising, but it's a considerable leap.Delay Action and Save More: Alternatively, I could pause any immediate investment, focusing on boosting my savings for a larger down payment on a more significant property next year.Your experiences, insights, and any advice you can share would be immensely valuable to me.

The rehab always seems so costly especially when the value is purely protection.

Or in other words, the rent received from house hacking would cover our housing costs (mortgage, property tax, insurance, repairs, utilities).Upon research however Oahu seem to be a high cost and low cap rate area similar to SF where we currently live.

However, it seems like a major convenience because you can remotely unlock the place or show it to future tenants without being there in person.

These two are close to both hospitals and after doing a little research the demand seems to be solid. 

But the laws seem OK with 6 as an upper limit for 3BRs so I went ahead with the rental. 

I do not know the source of their funding but if they received donations for aids and are using it for this, then that would seem to be inappropriate use of funds.  

It sure seems like you personally bought it.

Looking into note investing I've seen that most of the good notes seem to be in these pools but to participate you have to be an accredited investor.