A lot of people tend to mingle these things when they talk about "break even" or "cap rate", but that leads to a lot of confusion.Let's use some real numbers which may be easier to understand. 

Depreciation lowers taxable income now but is subject to recapture at a maximum 25% rate when the property is sold.

You'll pay a higher rate and may need to have more of your own money in the deal in case of unexpected repairs. 

Land is very risky, and being in hawaii makes it even more challenging - thus reason we see higher rates on land. could it be less, yes, it could be in the 15% range but i would be shocked if someone would be in the 10-13% range.

Refinancing: If the lender doesn’t approve, refinancing under the LLC might be required, but LLC loans typically come with stricter terms and higher rates.3.

When you consider that I only work about 4 hours a week, that breaks down to an hourly rate of just over $1,500 per hour.

So with interest rates high...

This is about the rate of a faucet(w flow restrictor) running 24 hours.

In your case, changing the property from a rental to your primary residence constitutes a change in use.The depreciation recapture will be calculated based on the fair market value of the building at the time of conversion, not including the land value.Since you're tearing down the existing structure, the entire amount of depreciation taken over the past two years will likely be recaptured, as the building's value at conversion will effectively be zero.The recaptured amount will be taxed as ordinary income, up to a maximum rate of 25% for residential rental property (Section 1250 property).

So, even when the market is challenging, you can still see properties and stay current.Don't take a break when the rates are high.