To make a home purchase more of a reality for people.  Require mortgage interest to be deductible only for principal home purchases.  If you are renting, then the interest has to be capitalized.  When you sell the rental, you will then get the benefit of paying a mortgage interest expense.  This theory would not apply towards purchases of multifamily buildings (apartments / condos).  This should cause home prices to decrease.  No grandfather clause...effective immediately, no immediate deductions for residential rental units (sf or condo). If this law cannot be passed on a federal level, I believe Hawaii can make it a state law that pertains only to Hawaii property.

Just a thought.