Since you know what you need to buy it at and an average rehab cost, I would say $50-70k for a cosmetic flip, set the ARV based on the sample you choose and doing comps and ask them if they would invest in a deal similar to this. 

One time I had a guest smoke and it went right up the ducts into my unit, it was awful.I'm conscious about how that could potentially affect guests who will be staying in the upper unit in the future.

Many times they will hold back the renovation costs in escrow and release once you’ve shown the renovated unit and leased it.  

Not to mention the general PHX market has become expensive and people have already been looking for cost efficient alternatives in the northwest and southeast corners of the valley. 

A cheap PM will cost you more than a good PM, and that's 8% - 10% of rent.3.)

Purchasing a “distressed” property and “repositioning” it requires significant capital for improvements, build outs, holding costs, maintenance.In looking for that “needle in a haystack” slam dunk great deal you’re competing with very knowledgable, greatly experienced investors with the cash to make no contingency offers and close in a few days.  

What they will offer you is an appliance package, or closing cost help, or a low fixed rate loan. 

But if your goal is to cashflow positive from the Day 1, you may find it very challenging due to current day interest rates, high cost of construction and the fact you won't have the efficiencies of a seasoned developer building at scale.

This post has nothing to do with cost segs.

This plan also offers many integrations (at an additional cost) depending on what your needs may be.