Rates in general are much higher than there were a year ago and they spiked again this afternoon.

Sedona is the oasis in the desert :)As water becomes more of a desperate issue in the SW, Sedona will likely spike further in value, due to it's abundant supply.

(There is typically a "power struggle" when one inherits tenants, in my experience.)(2)  Is this something I should be concerned about and dig my heels in with the seller? 

I think our strength has always been our experience in the execution of both lending and real estate investment, but my personal achilles heel has always been the capital raise part.

Look at every chart related to almost anything (not only real estate) and you see this huge spike in 2020-2023 and now everything is in steep decline.

I live in an area where the price of homes have increased by 10% or more annually, even before the spike.

I think there will a temporary spike in values as people want to be close enough to allow their kids to walk/ride bikes to the area, yet not live in the complex. 

Electric can also spike in the summer with A/C.

Either way, installing leak detectors is a good idea, preferably ones that can alert you electronically if there is a leak or a big spike in usage, especially if the tenants are not paying the utilities. 

I've been living here since I closed on the property back in Sep 2020, right before the market spiked down in South Florida.