I want to be able to use the condo for my family occasionally, which is one point in favor of STR. 

@Ned Carey - I think that's good advice, and conservative as well, but @Rob Wilcox got into buy-and-hold and apparently has done it successfully- maybe he would do well to diversify into building from the ground up.I've shied away from it for the reasons you mention, but dealing with 100+ units of housing, most of which was built over 100 years ago, occasionally leads me to think wistfully about new construction.

Cover all your bases up front with policies on overnight guests (what is an occasional guest vs a rogue tenant), illegal activities (can you evict over underage drinking, marijuana-what evidence is needed?).

You can reach a point, at a relatively small number, of having enough rentals that you're done looking for deals altogether, and just absorb the cash and deal with the occasional repair and vacancy. 

Occasional flooding on the highways and certain areas of Metro Phoenix.

Revisits the topic occasionally and passively implies that we are sleazy and she is victim. 

I get this occasionally as a lender.. people want to fish but don't want to give address.. not worth the time.. 

Thing#2 - Use your owner occupant status to its full benefit (Low down payment-Lower interest rate, etc) and buy your next rental property now as an owner occupied home and live in it for a year or two while saving for rental property number three - Buy rental number three as an owner occupant and live in it for a year or two while saving for rental number four .... and so on.You see that your wife will need to be onboard for this to work out - You will be buying a home that is possibly not quite what she may have in mind for your "forever" home and there will be occasional moves as you acquire new investment properties - Eventually, you will not be able to continue this technique and you will get to buy that "forever" home.  

. ;-)I'm at least 10 years from being able to "retire," but occasionally look at places to live once I do.

These are personal expenses, and only a portion of them can be deducted via home officecannot treat drinks with your band as a business expense, with an occasional exception like maybe a celebration of a new album releasecannot deduct "business attire or stuff I will wear at a show."