If I were in your shoes, I’d focus on house hacking in Phoenix by exploring multi-family properties or using the BRRRR strategy with undervalued single-family homes.

@Daniel GrantzRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Where is the property located.assuming the seller added the ADU and did not disclose the ADU in disclosure forms, you may have recourse (depending on the rules of your jurisdiction) but it may cost you some legal fees. 

Some people may go higher end, but naturally it depends on the property and neighborhood.

@Robert Ellis, you're obviously very experienced, and have a valuable property and deal going, well thought out and planned.  

It's a free country, you can run your business how you see fit:)That doesn't really work for self-managing property owners or what investors want from the PMCs they hire.So, yes we find solid contractors at Home Depots on Saturday mornings.When's the last time you've been at a Home Depot during that time period?

Building a strong team (agent, contractor, lender, property manager) is key—seek referrals from experienced investors.

We are working with our property manager getting everything ready to go- we are just a few weeks out from going live (fingers crossed).

But while I had my properties in section 8 it was generally fine.Like any, if you show respect to the property and tenants, they will typically show respect to you and the property. 

Can I ask how many properties you have and how long it’s taking you?