I took out a Cuyahoga county home improvement loan for $25,000 at 4% over 5 Years to fix up the vacanct top unit.  

If you wanted to keep your money in Hawaii there are some good options that will allow you to capitalize on the appreciation and also significantly improve your cash flow.

5)    You will have access to the MLS and have up to the minute knowledge of whats going on in your market.

Decide how much money you have access to, & the zip codes, city or state you want to focus on.

Your rate will be about 7% And you will need a debt service coverage of 1.25 or so.For this to work, you need to Richard at 70% of current value and then make improvements which should add $3.00 in value for every $1.00 spent.Additionally, if you cannot promise the investor that you can get the refi, then you will probably need to sell the property to someone who can.

Will the capital improvement benefit the entire building as a whole? 

The idea being I buy it from them,  give them access to that land with the easement,  and there's no need to move fences.

It is in a market i really like because of growth and i believe the sub market is improving in that area.Do you see any downsides or potential issues to a house that is 2 units but listed as a SFH?

Your basis in the property is lesser of the below in the year it was converted to rental: 1) your adjusted basis - ( purchase price adjusted for other various stuff -- such as settlement cost, improvements to your house and so forth. 2) FMV ( which is not a tax assessment) if you have used the wrong basis, in 2016,  to keep things simpler and practical, I would catch up the depreciation to make it correct this year. your depreciation basis is determined on the year it was converted to rental, and generally, does not evaluate each year.If any improvements are made to a property, they will be depreciated as a separate asset. 

This is DEFINITELY what's best for the investor, as it improves their ROI.