Up the coast on the west side, near Waianae, as well as up the East coast past Kaneohe but before Turtle Bay, and finally in Kalihi valley before hitting the heart of Honolulu, there are some very affordable pockets, but perhaps for good reason. 

So, yes, thinking about all the interest you could possibly pay over 30 years can be heart-stopping... and it should be.

My biggest advice for out of state investors is finding the right team members who has your best interest at heart (and not chasing a commission check or see you as a paycheck!).

Your heart is set on investing in a market that is NOT good for investing in.

I hope you can find peace in your heart sooner rather than later.Yes NJ is expensive but it's possible.

But in the mean time, this will drive the faint of heart out of the market, and the rest of us can make good money.I didn't mean my response to be glib, but this question can't be answered in one blog post.

Real estate development is not for the faint of heart, so after reading your post, it begs the following questions (and I hope you don't take offense): given you're new to development, why would YOU want to take this on, and why would your friend want you to lead such a project?

It also seems like it needs a ton of work and not for the faint of heart.

This business ain’t for the faint of heart!

@Joe Splitrock - My heart was sinking until I came to your reply.