Unfortunately this is not a strategy that rallies the base for many politicians running for local office, so getting this impemented widespread is easier said than done. 

Local guy who some other investors use. 8. 

Thats going to determine some of the decision making I'd think - you could always partially pay down the loan to achieve cash flow or breakeven or even a little relief - could be the best move if you think the property is well located and an otherwise good long term investment

Renter may break contract early with $5,000 penalty and 30 days noticeAdditional context: Hawaii is a hard market for locals and first time homeowners to enter.

Your local S8 Housing Commission should have an info sheet on their website that shows their deductions if landlord chooses not to include electric, gas & water.Even more critical, your $680 mortgage amount, that you appear to be comparing to the S8 rent, should include ALL the other housing ownership costs: property taxes, insurance, vacancy/tenant nonperformance (S8 tenant may have to pay part of rent), maintenance & miscellaneous.Suggest you use the BP Calculator for this.

Best locations are zip code and neighborhood specific.

This mobile home however is located in a mobile home neighborhood where the residents have to rent the land their mobile home sits on seperatly from their morgage. 

In fact, you'll probably get better terms on the refinance if you are living there, I know my local bank will let me do 85%LTV loans without mortgage insurance if owner occupied, but I can only get 75% LTV on investment properties and the interest rate is better by about 0.5% on owner occupied.

This is generally done through, a quitclaim deed or warranty deed, filed at your local county recorder's office.

I cannot think why I would go with non-local suggestions over the suggestion from the local expert.