However, I have no experience in this and would not know how much rent is projected for this setup.Option 3Sell and redeploy capital somewhere better.Appreciate any feedback on this situation.

They ended up needing to bring in their outside council, and it turns out they just don't have the experience with this non recourse IRA loans, and backed out.

Account Closed - Cash flow plays are indeed difficult in Hawaii.

If it is normal and it's out of budget for you, you can either use financing to lower your cash outlay, partner up, or find a different property.If the work is cosmetic, it wouldn't be a big issue to tackle on your own, but if it's more than that, probably best to play it safe and hire out.

That way a financially stronger party can't crush the weaker party in seeking "justice".Lawsuits, disagreements, kerfuffles or whatever you want to call them are life sucking experiences with no winners.  

If you use a DSCR loan, the lender will underwrite against the property's income, your personal credit and experience, and will source whatever downpayment funds you use.

You make a good, steady salary without all the ups-and-downs sales agents experience.

Or, if no minimum lease period is specified, sometimes the bylaws spell out, "A unit owner may not maintain and rent a furnished unit".Happy to discuss my experience.

So if you have need for a liquid emergency fund for your health, I don’t think you should play with that portion by buying properties. 

That way, you can lean on their experience to help you build your own track record and investor base.This is exactly what I did when I got started in multifamily syndication.