You will need a detailed renovation list / budget to determine the ARV as is it based on the proposed renovations. 

I just saw some huge development proposed for the old plant and on the river front.

His rent is at least 10-12% below market even after proposed increase.  

Hi Solomon, if you are considering O'ahu, I recommend you limited your focus to the hotel district of Waikiki, Makaha Valley or Ko'olina - those are the only areas that have legal STR's - though there are properties scattered around the island with non-conforming use permits that currently allow for STR's.Just note, the current government has proposed some pretty extreme regulations regarding short term rentals for O'ahu.  

What you're proposing is very high risk and there are several points you need to consider.

Please clarify for me just a bit what you propose I do.

Therefore, you will more than likely generate a refusal for the use and potentially a second refusal if the proposed parking space does not meet the required dimensional standards.

I've invested in many SFHs and have done some of what you’re proposing, but the reality is – well reality.  

By proposing to increase taxes on capital income, as suggested in a recent budget proposal, it will prohibit U.S. consumers from saving and will lead to reduced levels of investment activity which will then slow economic growth.

If its in the area you say it is, there are no permits available which means they are probably proposing giving up the permit and having you go in right after to get it.