Individuals are purchasing these properties, rehabbing them, and raising rents.

Then I work with a local insurance broker give them a valuation of the property, explain that the property is being rented and by how many people.

I hope people get the point that you worked hard to earn the $2 mil and invested it wisely, you didn’t just get rich overnight from real estate.

Maybe also consider if they are "good people" that work in the community and just want a safe place to raise their family. 

The feedback I've received from people is that the legal side tends to be excellent. 

We are currently working with our lawyers to take next steps and get our money back along with damages due to wasted time and investments we missed out on along with other people who they have done this too.

Personally, I would never live in PHX, but that is all personal biases (I prefer seasons and greenery), and clearly lots of people choose to live in PHX.At the end of the day, I would argue market selection almost only comes into play when you are talking assets that cater to institutional buyers that have to get investment committee sign off. 

Debt reductionLots of people only consider the first option. " I am not putting any money in to my pocket month over month."

Starting to get competitive though for investment properties because of that reason you have more and more people entering the market from out of state.

I am very cautious about stuff like this but if i find anything interesting or worthwhile considering I can let people know.