This replaced our first go-round with Cohen Partners that pushed us into the most complicated operating agreement a map would have helped.  

Here are some examples of the more common types of permissible and non-permissible expenses when a 1031 Exchange is involved: Permissible Selling Expenses and Closing Costs: Owner's title insurance premiums Escrow agent, settlement agent or closing attorney fees Real estate broker's commissions Finder fees or referral fees 1031 Exchange Qualified Intermediary fees Documentary transfer taxes Recording or filing fees Attorney fees and costs related to the disposition or acquisitionTax advisor fees related to the disposition or acquisition Non-Permissible Operating Expenses, Financing and Closing Costs: Financing or lender costs such as loan fees, loan points, appraisal fees, mortgage insurance premiums, lender's title insurance policy premiums, and other loan processing fees and costs Prorated Property taxes Prorated rents Insurance premium payments Security deposits Payoff of credit card balances Repairs and/or maintenance costs

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.

Don't want to gamble $500 to just inspect a property.

@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.