What these $20 - 40k “mentorship’s” sell is a SHORTCUT, but it does NOT work because the PRIMARY real estate education and knowledge MUST be there in order to be able to implement and strategy or tactic correctly, at the correct time, and under the correct conditions.  

They're not connected to the electricity grid and don't have air conditioning or amenities.

I understand the rate is competitive on the assumable, but having $300k liquid, you might as well do a lower downpayment and Buy down the rate. 

However, like any market, success depends on selecting the right neighborhoods and building a solid team on the ground.In Indianapolis, areas like Broad Ripple, Fountain Square, and Irvington have seen strong appreciation and rental demand, but they can be more competitive.

Also the 1% rule is about as good as the rule thumb and not based on current conditions or current data. 

If the seller misrepresented tenant conditions, consult a real estate attorney about potential legal action.

You will need to factor in rehab costs, which could easily eat up another $50-75k depending on the condition.

You may end up needing to go through the whole foreclosure process which can take a lot of time and cost a lot of money, and you may end up getting the property back in much worse condition than when you sold it, potentially with a squatter in it and months of lost rent, and in a worst case scenario you will be in a much worse position than if you had just sold it outright. 

I have a little hard time estimating a fair market value given these conditions as I don't know how much to discount the value of the house with these issues presented.

Given the competitiveness in Scottsdale, exploring duplexes or triplexes might be a more feasible alternative to larger multi-family units.