Your question about hydrostatic pressure is getting into the weeds for sure...I would ask myself, does the potential water infiltration have the possibility to damage the unit and tenant property?  

It would be possible in other ways like a lot of hot client leads but anything other than that will probably be specific to what that agent needs.

Phoenix contains a rare combination of elements that have created an outstanding market for distressed property investments, including the following:Cost Savings: Distressed properties are sold below their market value and enable investors to take hold of properties at a trifle compared to traditionally listed properties.Strong Market Fundamentals: Being among the fastest-growing cities in the country, Phoenix ensures a high demand in housing and rentals, hence good potential for resale or income from rentals.Value Creation Opportunities: Most distressed properties need renovations; thus, such situations present opportunities for investors to increase equity by adding value.Population and Economic Growth: Phoenix remains among those cities in the country which are attracting more and more residents and business; therefore, this presents good, long-term appreciation possibilities of property appreciation and income creation.Challenges to ConsiderWhile the rewards can be great, distressed property investment is not without its challenges.

Cross-Collateralization – A lender may finance the full $160,000 purchase by using your existing properties as additional security, lowering their risk and possibly reducing your down payment. 5.

Give them the projected return, but also be honest about possible downsides.2.

A flat-rate PM fee incentives keeping things as SIMPLE and EFFICENT as possible.

We would like to refinance as soon as possible after the build to recover all or most of our initial investment.

I want to get, at least, 5 properties over the next 2-3 years if possible.  

I think tax benefits should be secondary to buying something that would work well as a STR.I would recommend you consult a tax professional to see what possible tax benefits you could receive from buying this STR.

Yes possibly!