I have read here the multiple posts from the landlord concerned about tenant setting thermostat to the extreme causing excessive HVAC wear and tear. 

I'm not sure how much more work is involved on the commercial side but I also though $240,000 (3%/3%) was excessive on a $4M building in a hot market.

We have seen a lot of properties go to Excess & Surplus carriers instead of Citizens.

So they have $47,800 worth of debt and $45,600 worth of excess annual income.

We have net SHORTAGE, how do you get from here to net EXCESS?

Or sell and have the excess funds , not worry about maintenance and landlording.

Bottom line is it would take a thorough analysis to ascertain whether there is a probably of excess profit enough to offset the additional risk.  

If you want to invest in more rental properties with your excess BAH then I’d suggest looking anywhere else on the Mainland where the 1% thumbrule works (at least a 6% capitalization rate)-- and where your invested dollars will go a lot further.On the other side of buying a home in Hawaii while you’re on active duty, I get many unhappy e-mails and other comments from people who’ve bought here and then can’t cover the sales expenses. 

I started a Series LLC with Bank of America but found their fees to be a bit excessive ($16/month for account maintenance and various fees for transfers out).  

IMO properties in excess of 4-units are likely better valued using an income approach because they are mainly purchased for investment purposes.