I'm thinking combined should be about 8%.#8.  1% rentals is a good target, but rare here, unless you buy old homes in the bad neighborhoods...and then some of your other numbers probably change. 

Phoenix contains a rare combination of elements that have created an outstanding market for distressed property investments, including the following:Cost Savings: Distressed properties are sold below their market value and enable investors to take hold of properties at a trifle compared to traditionally listed properties.Strong Market Fundamentals: Being among the fastest-growing cities in the country, Phoenix ensures a high demand in housing and rentals, hence good potential for resale or income from rentals.Value Creation Opportunities: Most distressed properties need renovations; thus, such situations present opportunities for investors to increase equity by adding value.Population and Economic Growth: Phoenix remains among those cities in the country which are attracting more and more residents and business; therefore, this presents good, long-term appreciation possibilities of property appreciation and income creation.Challenges to ConsiderWhile the rewards can be great, distressed property investment is not without its challenges.

As someone in the industry with an established infrastructure, I hate to see anyone suffering this type of treatment.

Does the Sheriff’s Sale combine both tax sales and mortgage foreclosures?

Negative cash flow combined with historically slightly poor appreciation would lead ne to exit unless I had some reason to have confidence of appreciation above its historic rate.https://www.neighborhoodscout.com/ok/yukon/real-estategood luck

If you are using it to buy a turnkey property which needs to produce cash flow to be considered a viable deal how does buying turnkey(Little to no cash flow) combined with HML(High interest only debt) make alot of sense financially? 

is it a combination of 2 or more of all the things above?

There are obviously other methods such as direct mail, PPL, PPC, SEO but some take a lot of working capital or a lot of ground work or sometimes a combination of both. 

It has gas baseboard heat across 3 floors, with second and third floor being a combined unit 2, new furnaces installed two years ago.

You end up getting a wholesaler who knows little to nothing and has a massive ego which is a bad combination.