As others have noted the number of MF properties in the greater Phx area is low compared to many markets and the number for sale is even lower.

What is your anticipated sale price?

So selling it to someone when you can't give them clean and insurable title can sometimes be an issue.At that price point, not so much. 8k properties tend to have a buyer pool that won't care as much that the title isn't insurable if they see the reason why is because it was bought at a tax sale. 

Much of this analysis is based on the size of the land, how much it will cost to do the horizontal development, and then estimate the cost of the vertical build and ultimate value (aka "sale price")

X a month sounds a lot better and is actually doable for a lot of people vs a big pile of cash today if you need a full cash sale. 

Padsplit people try to sell you that it's only a small portion of your income (1 out of the 6-8 members) vs if you do long term, you are losing 1 of 1 income. 4.

If you’re planning to pay cash for the rehab, make sure the lender provides non-dutch interest on the rehab portion so you only pay interest on the funds you actually draw, if any at all.Once the renovations are complete, you can do a cash-out refinance after 3 months of ownership.

I do plumbing inspections on the way in, along with full home inspections, and sometimes we do a pre-sale home inspection on the way out before the sale and we offer that as part of the listing package.

Most people focus on the numbers and then learn the rehab portion through trial and error/ feedback from other investors.

The portion allocated to qualified use is tax free.