People are indicating that STR occupancy rates are declining now and this last summer was simply pent up demand based on two years of house arrest, I mean covid quarantines.I have a property in North Phoenix I'm considering using for STR. 

That's called "Eviction with Conviction"******************************************************************Moment SWAT raids $400,000 Georgiahome and arrests four squatters running an 'illegal strip club' where they also kept HORSESThe neighbors not only lost sleep but would wake up the next day to piles of trash in front of the home.

As one of my big clients there got turned in and fined etc.. then did it again and they arrested him..

Someone going to jail for 2+ years for DUI, battery, or theft?
Would they get their house back once they get out of jail?

I would check with your municipality and codes office from what you have stated this property is uninhabitable and should be condemned if you have a friendly codes officer that may be another option to look into.Obviously, this is not legal advice if you do the lock out and board up on your own just know the consequences; in my metro area an illegal lock out will get you arrested and law enforcement does not want to get involved in this type of issue too much liability for the officers and the city.   

Made the evening news and got arrested.

Funny, you can smoke dope, steal from Nordstrom's, break windows at Starbucks, sleep on the street, and other things I won't mention here, but if you try to help someone that is in foreclosure save some equity you can be arrested. 

I remember in the media when they would show them getting arrested they would have cash stacked up in a bedroom or whatever.i wonder how many Drug Dealers get caught by this Bank thing, vs the PITA it causes the banks and public.Just my 2 Cents

Or that a neighbor got arrested for a domestic dispute?

When I filed police report, the police asked me if I wanted to have them arrested and go to jail, I said I don't know if it's up to me, I just wanted to have my stuff returned.