Property is ready to go with tenants and the investor don't have to do anything but collect rent.

I would call that middle class at least, and that's assuming 0% interest on that initial $3.5M.So, you're ***-u-me-ing perfect health, no injuries / accidents, no natural catastrophes (hurricanes / cyclones, wild fires, volcanic eruptions, ... at least two of which are common in HI), vehicles which last forever and never need to be replaced, destruction-proof housing and furnishings, ...... and if you CAN live that lifestyle in HI on $100K / yr (most people can't in ANY state), why are you not teaching personal finance at the university level? 

.$25,000 surety bond.Copy of lease for location or proof of ownership.Dealer training seminar certificate.Registration of fictitious trade name.Copy of corporate papers.Sales tax number.Federal employer identification number.Fingerprints and applicable fees. ($54.25 per person).I emailed the DMV to see if I am permitted to use my home as an office.The response was (and I am happy to have it in writing) You can be a Broker in your house as long there is no zoning issues.

It may be extremely difficult to collect from them if they end up owing you money.

Keep in mind that the auction process is just part of the legal requirements for the lender's collection activity of last resort - and that the auction process is somewhat designed so that the lender can "solve" some of the issues by following proper procedures (for example, IRS liens can be left with just a redemption period if proper notice is given to the USA that a foreclosure will happen and extinguish the IRS lien).

It goes without saying that you should be collecting a pretty strong deposit. 

Maintain good credit habits and remove the negative1 - You want to get rid of collections or inquiries that will damage your credit score.

Everything else was mostly a cosmetic fix.We discussed ways of collecting rent -  Social Security paychecks for rent are nice because there are no inspections involved and the check will be deposited directly to you each month it is due.  

They will be a problem collecting rent.  

If they collect 300, they could recover that 25 months, depending on efficiency, they might raise that in 5-6 years even without raising fees. 2550 rent on a 200k house on a hot market is a no brainer, sure hope there is appreciation.