But, ultimately, it could work if you don't mind a low ROI.It could make sense if you look at a lifestyle rather than an investment purchase and you're just happy to cover your costs.

After weighting all of that, does it make the most sense to try to keep this tenant in place? 

I also know Arizona is fairly investor 'friendly' and has fairly low property taxes.Interested in purchasing small multifamily properties (2-8 units) depending on the property and numbers of course.

I find with ANY project on a property, PLANS are worth their weight in gold bc they will show the exact inches, ft, etc that the project entails.

BUT for certain rural areas it's worth it's weight in gold because of the reliability factor vs an unreliable or expensive existing utility structure. 

I wouldn't have to wait longer to prove my income on something that price.However, I'm wondering if it's a good investment or, like someone told me, "if house prices are that low, you'll likely be in a poor area and not have great tenants."

The best route is low coverage industrial, industrial outdoor storage.

In the limited instances where I do collect a fee on the purchase I often roll it into the deal and take price reduction.

Some will go down as low as $100,000.  

I would look for a bunch of Sub To Deals with 2-3% interest rates ...... then rent out for cash flow and huge equity build up when rates are really low (check out amortization schedules and compare 2-3% vs 6-7% with the same balance and length of time - check out the principal portion each month - the lower the rate the higher amount goes to principal PLUS better cash flow).