Purchase price: $119,000 Cash invested: $200,000 This is maybe a new Category: BRRRRSR Buy Renovate, Rent, Refinance, Repeat, Sell, Repeat.

If you are paying cash or seller finance etc, you'll have options. 

I would like to do it anyway and I do have the funds (fully funded HELOC & cash).

They are profitable, modestly so, and the real opportunity here is long term. 

It shouldn't be a problem to call and while I don't know the specific rules for Hawaii (probably something like a smoke detector in or next to every bedroom and a carbon monoxide detector in the house), rules regarding smoke detectors are not going to be "grandfathered in" (a term that building departments hate btw).

Just as long as the owner is someone who will actually take care of them. 

You'll also want to know what the terms of the lease you are inheriting is and decide if you are OK with that.And sometimes, it is good to just walk away and put your effort into another deal that might make you as much money for less effort.

Hi Jacklyn, I'm a VT realtor (though I focus on northern VT), and also on the board of the VT short-term rental alliance (VTSTRA).

It serves many benefits for both buyers and sellers and if a law had been passed long ago that all such private transactions were required to be serviced through a thrid party, we would not have as much regulation addressing the issues we have today, specifically, the individual investors under the SAFE Act!

Then you need to materially participate in the activity, here are the tests to meet MP: https://www.investopedia.com/terms/m/material-participation-...I recommend tracking your hourly diligently in a material participation time log.