As others mentioned, you're going to have a very hard time getting a loan when you're currently in default on any kind of mortgage, HML or otherwise.

Qualification can be either of the methods I mentioned with option #1. 

Sounds like the Hawaii business that you mentioned is on the island of Oahu.

If they aren't taller than two floors, you might not be able to go up.I thought about that and mentioned it to the Contractor.

You are the second one that mention the "Vivid Vision" and I am actually viewing the book right now.

I personally manage my rent by the room property and yes there are some headaches, but as you mentioned it's one of the most viable ways to maximize returns in a high-priced market.

I only mention this because I noticed your mention of Furnished Finder, which is the only platform I list my MTR, and FF caters to 30+ day stays. 

If you purchased this property with conventional financing, then as already mentioned 12 months is needed to pull cash out. 

Little did I know I was going to stumble across some books mentioning bigger pockets, start listening to their podcast, and make a post saying this house is now going to be a fix and flip!

One thing you can do right now: create the Furnished Finder listing with unfurnished photos, mention in the description that the property will be furnished soon, and start fielding inquiries and watching the unmatched leads section.