My first reaction to your post is if you're purchasing assets that are throwing off positive cash but your DTI is going up then it may be time to re-evaluate the type of assets or the expenses associated with those assets.  2.

I know this is above and beyond what most municipalities require, but being fair will make the whole process easier.Additionally, a new landlord can reduce the 60-90-day notice by offering more moving assistance (cash and/or labor) if they move sooner rather than later.

One thing I'll add to an off-market deal is you might find a seller willing to do seller financing.You said, "I don't think the time exchanged to manage SFH would be worth my time and the cash flow most likely wouldn't be reasonable enough to hire a property manager.

Those 7 years were cash positive, but we just weren't making enough cash flow to make it worth the trouble. 

However, I’m open to exploring opportunities in other cities or markets if the numbers make sense and align with my investment goals.If you know of any deals or markets worth considering or maybe even a deal lines up, I would love to know of it!

I assume you would have to pay cash, because you have to spend all cash received to avoid taxes.

For example, if you buy a home for 100k, and then improve the property and now it is worth 200k. 

There are almost no exceptions to this, so it's not even worth considering.

You need to know for sure.Even if you raise the rents, the property is still a negative cash flow, so it doesn't make sense.There are always comps.

West Valley cities like Buckeye and Avondale, East Valley spots like Apache Junction and Mesa, or growing areas like Casa Grande and Maricopa are worth exploring.