My only concern with this house hacking tool is how appealing the home would be to tenants if it needs work because in order to pay off my mortgage I'd need a steady cash flow from my tenants.

If done, it will:  improve the curb appeal , lower maintenance, create more privacy,and add rv parking.

The strategy that is most appealing to us is purchasing SFH to rehab for rentals.

As @Chuck Kramer mentioned, there are a ton of 4-7 bedroom high end new construction properties being finished this year and next, so you'll want to make sure that the aesthetic of yours will be unique enough to be competitive when all of those start entering the rental market.

Maybe do some minor things to increase the curb appeal.  

In the highly unlikely event that the local jurisdiction isn't familiar with the law (some law police are not familiar with the law), than any higher court that sees this case on appeal will GLADLY make sure you never make this same mistake again. 

I personally couldn't give you advice on whether those numbers appeal to me because I'd have to know alot more but if its that much cash for that little equity you have to factor in the bank will likely require they sign so you are asking for cash and recourse.

I could be wrong about that, but it's just the sense I get driving around the area and seeing the appeal of the different places.But if I went for a third, I may try to get something close to Gatlinburg or Dollywood to diversify the portfolio.Regarding cleaners, we actually stayed in a cabin that your cleaner cleaned when we were in the area a few months ago.

Your main decision will be between passivity and control.If any of the few options I mentioned above are appealing (and there are others, TICs, DSTs, etc), I'd say set up some keyword alerts to help you learn more and connect with folks who are pursuing the same kind of investments.

I believe that much of the new construction will be overpriced for a lot of the Tucson demographic, so updated nice older houses will appeal to many.I see a ton of flips in the listings in all parts of town.