And with all the construction over the past decade in Kapolei in an effort to make that the "second city", those prices are just going to keep going up.

They have my  best interest at heart, but they aren't constructive about it. 

Then I was hooked bought a rental jointly with an older guy who was a realtor because the bust made him lose his construction company. 

Integrity Construction came in and got Nationwide to replace the whole roof!  

They had also found a newly constructed house for the same price, which is what they wanted to purchase, so they broke the contract,even after we agreed to the lower price.We then sold to house to a new buyer.The real estate agency that wrote the lease option sued them for the commission,but since the house was sold, the realtor had gotten their commission, so the case was thrown out.The lease option people then sued me, demanding the $6k set aside for their down payment (even though it clearly stated that it was only available as a down payment, if they purchased our house.

I believe that cap rates are important and cash flow is king.My thought is that constructing a new multifamily property will be more attractive to renters rather than offering an existing 'older' unit.

@Kenneth Shelley   another way to put what Don mentioned is you may want to walk before you run.if at this point in your career your asking these very basic questions your not really qualified to lead your investment group.. you may make it ok but you could very easily go through a steep learning curve and lose your close friends money and based on my long career working with investors I can tell 1000% you lose their money in a RE deal and you are no longer friends no matter how close you think you are now.as for some constructive feedback here Is what I would consider if I was in your shoes.I would get my Real Estate license so you can prove to them your a professional and care about your craft..

She owned a construction business and it was successful.

The neighborhood is only 4 years old and new construction will close out in the next 12 months.

While I specialize in hotels and commercial construction projects that require mezzanine and equity financing, one of my partners specializes in financing multifamily and mixed-use projects, another in industrials, and yet another in offices in CBDs and Class A retail projects.