Putting 20% down is the safer route however we don't plan to stay in the multi-unit for more than a year or two and putting down 20% would eat into our down payment for our post-multi-unit residence.

Managed Corporate Housing - where Property Management and Corporate America intersect US Corporate Housing *▪$3.6 Billion in Gross Rents▪66,863 Rental Units▪87.2% OccupancyIn 2017, the Corporate Housing Providers Association (CHPA) reported revenues of $3.6 billion in the United States alone.

If you think you're going to go the BRRRR route, then the 5 year ARM might make more sense, if the closing costs are equal. 

The cost to you may be two months rent (everything's negotiable), which is much less than if you went the eviction route.

Your father doesnt get paid until closing, so it all depends on which route you go.

There are experts (lawyers, accountants, investors) that can make a case for either route. 

Not filing the paperwork within the states may potentially not allow you to bring actions to court.I am suspicious if not paying the Nevada Annual fee to dissolve it is the best route.

@Mike Zahniser If I go the FHA route, with the higher borrowing amount and mortgage insurance, is it still reasonable to expect to pay near 0 or should I evaluate as if I paid a 20% down payment for a conventional loan?

But while Hawaii does have a non judicial process, many lenders go the judicial route.

I recommend reading posts and reaching out to a few you feel can provide value if you go this route.