NOI (Net Operating Income is always key).

(This last line may have been added)http://www.rentlaw.com/military/clause.htmRIGHT TO TERMINATE A LEASE EARLY In general, Under Section 535 of the Service Member Civil Relief Act, a military member has the right to terminate a lease, if, after signing the lease: the tenant enters military service (which includes a reservist being called to active duty); or the tenant signs the lease while in military service, and then receives military orders for a PCS move, or to deploy, or as an individual in support of a military operation, with a military unit for a period of not less than 90 days.

It never hurts to check with them for an indication as to how a company operates.

@Bruce Bradsby where in Hawaii are you operating?

I ran some numbers myself and although your repair and maintenance estimates are a bit low - I doubled them in my calcs - I also added the vacancy rate of 7% cause I always like be more conservative in my calculations - further more , to be sure its a good deal , you really should add the management fee cause otherwise you are making calculations based on you always managing the place yourself - ( which you may plan to do anyway ) however - I like to calculate what the cash flow would be if you had to walk away from the day to day operations and bring in manager   -  That being said - It looks like you are looking at roughly 934/ Mo in cashflow or $11,220 a year yielding you about 15.6% Cash on Cash return the fist year  - not a bad deal at all.

Regrettably, most agents operate without adding any real value.So please, just be honest and tell them exactly what it is you hope to achieve.

If that is the case, look into the ROBS 401(k) which will allow you to finance a real estate operating company with your retirement funds tax and penalty free can also draw a fair salary. 

As far as your structure, it would be better to have the two investors enter into an LLC as a partnership, with their own operating agreement done up by an attorney.

A loaf of hearty wheat bread, a shack in the Bay View District, and that’s about it.When looking at Denver, it still has some potential for property value improvements, and commercial rental property is still a strong choice for those who don’t have a problem hosting a marijuana growing operation.

@Joe Homs also operates as a flipper just north of you.