We don't believe they are stealing, but their negligence has cost us a lot of money.* Is this enough to file suit in small claims court? 

Here are a few to watch out for:Property Condition: Most distressed properties need extensive repairs or renovations, which add to your initial investment.Competitive Market: With Phoenix's popularity among investors, competition for the best deals can be intense.Complex Deals: Foreclosures, auctions, or short sales are much more complicated compared to regular real estate transactions and usually require specialized knowledge.Tips to Successfully Navigate the MarketDo Your Research: Understand the local market conditions, including neighborhood trends, property values, and potential rental income.Build a Strong Network: Work with professionals who specialize in distressed properties-such as brokers, contractors, and legal experts-to make the best decisions.Assess Costs Carefully: Factor in the cost of repairs, holding costs, and any potential financing issues when evaluating a property’s profitability.Be Patient: Finding the right distressed property takes time.

Would the value of the remodel increase the rents or the selling price that would out weight the cost? 

"the typical home warranty costs $450 annually, and only 25% of premiums are paid to homeowners.

This allowed our partner, Jamari Sprueil, to move forward without any upfront costs.

While this structure offers great asset protection benefits, it doesn’t necessarily save money on filing fees or administrative costs.

.- Expected renovation costs $1MM.

It doesn’t cost you anything and gives the tenant time to rearrange their entire life around your decision. 

The easiest way to find and connect with wholesalers is either bigger pockets or by googling "sell my house fast in (town name)" although that may cost them a click for google ads.

At this time I manage and renovate majority of all my units to keep cost low but most likely not the best use of my time although I'm skilled at it.