If that is the case then choose the area you like most, but if you are wanting to get a quicker return then I believe the Lookout Mountain lot might be better with the Paradise Valley Mall upgrade being somewhat close to that area.

The couple that did the house hacking not only lost everything they had worked for so hard but what ment the most which was the child had now been broken and the family fell apart.This is a true story they were my neighbors.

Anddd, I upgraded my phone for free!

In CA, generally, if a tenants dog gets out and attacks a person or pet by way of landlord negligence, like through a broken window or faulty door, then you the landlord could be held liable.

However, minor cosmetic repairs or repairs to personal property cannot be deducted such as paint, replacing broken hardware, fixing leaks or holes, etc.(2) If you have other types of investments (e.g., stocks or mutual funds) that are operating at a loss, if you liquidate those investments to take a loss, you can use those losses to offset your capital gains.

So don't buy rental but keep buying primary locally... you can even double your networth very quickly buy buying broken-home and flip it around. 

I am able to do a CMA (Comparative Market Analysis) for you with specifics based on what you are looking for, however- I just need square footage, zip code, number of bedrooms and bathrooms, neighborhood, year built and age of home/upgrades and improvements to compare.

Be sure to talk with your guys the expectations for "clean up" as ours was still caked in layers of dirt, but the guys swept up the broken floor and pieces. 

Putting aside the issue of whether the property continues to appreciate or levels out at the ~170k which we cannot judge, if you actually do the numbers, it will not work out to where a sale is a better option than continuing to enjoy the cash flow, reinvesting those funds in further upgrades or further investment.

Consult with a mortgage broker or lender to determine the best financing solution for your investment goals and financial situation.Property selection: Look for properties that have the potential for value-add improvements, such as cosmetic upgrades, energy-efficient upgrades, or additional amenities.