People in my area would think you are smoking crack for wanting to put that much into a property to even cashflow 3k a month.

Smoke and mirrors.

I imagine that restoring a house from fire/water/smoke damage is not that trivial and then finding an investor that would be willing to buy an "after-fire" asset will not be easy as well.

In addition to racing dirtbikes, my friend also enjoys smoking cigars.

I can understand the concern because of the odor, but your question did not include smoking marijuana or taking marijuana pills for medicinal purposes. 

What are the laws regarding lead testing, hard wired smoke alarms, etc. will impact your rental.  

They refused to pay for this too.I then discovered they had been smoking and scattering cigarette butts all over the yard, despite the lease stating that it's a non-smoking property and there is no smoking on or in the leased premises.

Now start thinking about the other things that could go wrong or turn out to be smoke and mirrors.

Jeez I tell you, yes she is now out my life but I have a bad feeling she will dispute the amount though feel I am covered as only charged $100 for cleaning and repair for excessive .5" holes everywhere, $25 for supplies, $80 for the smoke detector she took down and monoxide detecter she took with her plus $200 carpet cleaning and $325 to repair the holes.

The market is probably not going to do too well with the volcano eruptions...no...not for the lava threat...but the volcanic ash-smoke and earth quakes (which can cause damage too).My guesses with regard to the market on the Big Island.