I'm a very new real estate investor and pretty new to BP as well (only my second post) so excuse me for any mistakes in my post. 

Do you think this would be feasible in Phoenix and if so, which areas?

So no Board, nothing to manage except State law...the organization docs for the HOA should have identified when the developer maintained control, the terms for it to be turned over and at turnover you would establish a legislative body which would be the Board...

So you're not completely anonymous.

Air Force basic training happens here, so every week there is a big batch of families coming to see their kids graduate. 

The contributions are lower so it takes a while to build, but once you do, it's tax-free investing. 

So it could take a decade to get to todays market rent. 2) it’s almost impossible if not impossible to non-renew a tenant, especially if you’re not an owner occupant. 3) As a seller, even if I could remove paying tenants I never would without a non-refundable payment from a potential buyer that covers all vacancies for 6 months if they fail to complete the purchase. 4) You MIGHT say as a buyer that’s worth it.

Its a 12 unit building so lets say 2 persons per unit . 60x2=120 a day per unit 120 x 12 units = 1440 gallons Depending on area lets round it up to an even 2000 gallons . 

If so, is there any red flags such as rental restrictions, limitations, etc.

So you can bank the difference.