Let me steer you in the right direction.Imagine you buy a list with the address of vegans, that are also animal rights activists.Your company sells baby-cow burgers.

Even if you don't feel you have enough info to give me directional advice, how would you go about deciding whether to address the problem?  

The home requires quite a bit of rehab work. 

Rehab will be required.- you may need to look outside of Phx to markets like Gilbert/Mesa or even Tucson.  

Just finished the rehab, likely will go through the same thing.

The tenants threw a party and neighbors called it in and now he is dealing with the City on how to address this.What we think should and shouldn't be enforceable isn't relevant.

I will also give them comps / rehab estimates for the property as well. 

Quote from @Katharina Bormann: I address the importance of clear communication in my book.It's not enough to tell them what is wrong.

If you can buy something habitable, and rehab it over time while you live there, that could be a home run of an investment when you look at your return on investment, especially if you house hack.Sure you may leave cash in the deal, but if you buy right, it could still be an extremely profitable and low-barrier to entry way to get into real estate.

Let me address your questions and concerns step-by-step:1.