What angle am I not seeing? 

There are typically two widely available options for someone looking to buy a 2-4 unit property, live in one unit, rent out the others, and put less than 20% down. 

I would speak with the inspector and find out how wide spread the infestation was, and have a general contractor take a look and give a worst case scenario.

It can be complicated.Tourism is very strong island wide and so there are opportunities for sure. 

Paint, plumbers, flooring, electrican all fairly easy to get and pretty wide selection....Handyman type stuff though, huge pain if the jobs not big enough. 

Property taxes and insurance varies widely from market to market having a big impact on cash flow.

Zzzquil, benadryl, melatonin... i was wide awake haha.

@Brian Burke mahalo (thanks) for such an comprehensive answeryou are right that it is an intellectual exercise only, but I like to see where the money is flowing and what/how the GP is thinkinggoing to Costco tonight to buy the jumbo 2-pack of xtra wide tin foil :)alohasteve

Prices will vary widely and you need to know why that is.

I could see the appreciation value, good school district, very nice family neighborhood, close to shopping, wide streets.