Consult your insurance agent to get real numbers. 

This will allow them to sell their Hawaii property tax free, or close to it, because the $400k loan will reduce their gain when they sell.You'll want to consult a mortgage expert and tax professional, since I am neither

Always consult with your attorney before you rely on the above information.

Contact a local architect/engineer for a detailed consultation specific to your project/locale.

Hire a consultant that is familiar with your project type, that can help guide you through the process.

In California, I think that's $70 upfront and then $800/year/LLC (again, you'd need to consult a licensed, practicing attorney in CA to confirm what I just googled about California).

Answers my questions to the best of her ability, and is not ashamed to state she must consult with someone if she's not 100% sure about the answer.

You need to check utilities etc to determine what needs to be done to separate the meters if not done already.Also you need to consult an attorney and get an estimate to prepare the condo documents.

I suspect (but I could be wrong) that asset protection will require that you transfer the ownership to your LLC, either directly or thru a land trust.There are disadvantages of transferring property into an LLC, so do consult with an attorney.PS.

There are usually some good, local investors that monitor those forums.