If it is a house, it is normally trashed.Mostly what sells are lots.Almost no one redeems here, so I'm pretty surprised in AZ you have such a high % of people who redeem and pay off what they owe. 

They move into the bucket of a former passive activity- you can read more on it in code section §469(f). 

I know this firsthand—my first investment property was one of these older conversions.

I was in flips and existing inventory in Columbus Ohio for 10 years and after old houses went over budget I started to modify my strategy to represent more of a market mover and new construction does this. it's been 2 years and haven't looked back.

Personally, I would never open a Series LLC in the State of Illinois.

One thing I’ve learned in land acquisition is that the approach has to change depending on the market.

Quote from @Jeffrey Fullard: I have an investment property that I would like to take money out of by using a line of credit.

Never spend your last dime to purchase a property, because there will be unforeseen expenses popping up your first year.

There's a map of all the properties listed on that site.  

You may not make as big of a return, but the downside is a lot less.