You'll have a slight disadvantage compared to the local population, but nothing that should crush you.

Before this law, however, I only accepted applicants with "garnishable" income to help protect the landlord in the event we ended up with a defaulting tenant.

@Kevin Hoover, with certain types of entities it is possible to contribute property to and distribute property from that entity without triggering a tax event. 

Stay disciplined and avoid rushing into deals without thorough due diligence.Resources for InvestorsIf you’re new to investing in distressed properties or looking to expand your portfolio, consider leveraging resources like:Local Realtors: Realtors specializing in distressed properties can assist in locating off-market deals and navigating complex transactions.Community Forums: Attend a local investor meetup or join online forums for the Phoenix market.Educational Tools: Search out webinars, workshops, or courses on investing in distressed properties.Final ThoughtsThe distressed property market in Phoenix is creating some excellent potential for the right investors willing to go the extra mile necessary to take on strategic risks associated with this category of real estate.

As for meeting local wholesalers, networking at meetups or even online could help you connect with the right people. 

However, looks like there is a harsh line as far as what locals can afford and if you go over that, vacancy is high.-- lawton is a very cheap market and has a high demand for renters.

Quote from @Kyle Barnhart: I live near Phoenix and looking to invest locally.

In the event of vacancy, they will work to market your property for the next tenant. 

Lenders stopped allowing rent by the room due to modifications done to the property resulting in functional obsolescence and significant cost to cure in the event there was a default and they needed to foreclose on the home and resell it, given that the main buyer pool for single-family homes are primary occupants. 

Some syndicators have so many fees (acquisition, construction management, asset management, capital event, disposition) the syndicator is going to get rich even if the deal produces zero return for its investors.