Since so much has to do with location/size/niche, etc., I am trying to focus on learning more about strategy and mindset of others in BP than the actual numbers themselves. 

If you can buy the lot and put a reasonably sized house on the lot at the average building cost rate, and come out ahead on the sale (or rental) then go for it.In my experience, I can't make money on the cost to build a house on an empty lot. 

Is rent amount at,below, or above market for that junior box size?

@David Jenkins - sorry, one more thing, loan/line sizes would help as well.

If I were to BUILD, I would go with a 4-plex; max rents on minimal lot size and still have parking. 

If I was starting out, I would personally do 80/20 or better deals depending on size just to build a track record.With more access professional sponsors and more investor awareness, I see money flowing to the more seasoned sponsors who offer superior returns.

So, if you will be renting it out year round, you should purchase it as an investment.Down payment options differ for both, and are dependent on details like property type, loan size, among others.  

Size of Homes?

Lots of one-size-fits-all commentary on BP.  

Nau,  which building/unit size did your client in Waikiki purchase?