You also should be aware of the Pre Payment Penalties on this loan, especially if you are incorporating a BRRRR strategy.

If I were in your shoes, I’d focus on house hacking in Phoenix by exploring multi-family properties or using the BRRRR strategy with undervalued single-family homes.

Currently, I'm in WA but due to the lack of good reasonable priced inventory for BRRRR, I'm drawn to out-of-state investing. 

I'm looking at a duplex to BRRRR if possible, but I'm not sure of the area myself.

This is the simplest method, but it also means your tenants are more likely to abuse the utilities by leaving windows open with the heat or A/C running, leaving lights on, ignoring the toilet that constantly flushes on its own, etc.3.

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

House Hacking, STRs, Mid-Terms, and BRRRR are all solid strategies to explore.

If not, you have to fix it by abatment or LBP hazard control methods.

.✔ Trust Your Screening Process – If they refuse all verification methods, consider it a dealbreaker.

https://www.biggerpockets.com/blog/what-documents-do-you-nee...BRRRR Loans: What Are the Options, and How Do DSCR Loans Stack Up?