The remainder would fall under 121 up to the limits of 121.Option 1 is probably the best for you. 

You may add that you will keep the application on file for future consideration.You should keep a copy of all applications anyway. 

If you limit by keywords in either the marketing or agents remarks, you will miss out on good properties. 

During the rental agreement signing, I have a little speech that I give applicants where I tell them that we do not tolerate late rent. 

That being said I think with your limited experience you start off with that.

I would love to get started with real estate and I am especially interested in wholesaling because I have limited funds.

Doing a 1031 was mentioned, but isn't applicable because this is your residence at the moment.If you paid $60K+$8200 improvements + purchase closing of $5K your basis is $73.2K. 

We are familiar with many of the limitations the Honolulu Department of Planning and Permits places on such a project.

There's lots on BP, but to get you started, here's some of my old articles that hit on things related to out-of-state investing (it's all I've done from LA).Out-of-state buying options:https://www.biggerpockets.com/renewsblog/2012/12/2...Choosing markets:https://www.biggerpockets.com/renewsblog/2014/02/2...https://www.biggerpockets.com/renewsblog/2015/12/1...Running numbers (applicable to any property, but especially if you're buying for cash flow elsewhere):https://www.biggerpockets.com/renewsblog/2013/01/1...I have lots more on various topics but will leave it at that for now.

I have a limited amount of cash that I'm using instead of taking out a loan for the construction work.