There are a number of reasons Phoenix is a top market for fix-and-flip:*Population Growth– Phoenix is still seeing population growth which creates demand for housing and increases home prices.

We tried to reason with him he has a  business that is not doing good we have told him repeatedly that is no reason to not pay his rent on timeThe restaurant he is leasing from us is doing great business he needs to have a moment with a competent attorney we don’t have to make him understand his responsibilities he agreed upon in his lease 

In addition to STR'ing the main house, he is building 2 more units (ADUs) on the back side of the property.

Does this approach seem reasonable, or am I undervaluing the property?

The best approach is to set clear, written criteria, and then price the property at a rate that gets you enough applicants that you can find a few who meet your criteria reasonably quickly.

As you're doing your research, the main difference you will find with a Commercial versus SFH/MFH is the due diligence time constraints. 

Not only does it make the property look poorly managed, it's a great way to crack your main sewer line and leave you with a hefty plumbing bill.

I mainly use LLC's taxed as partnerships. 

And thats why those units are still seeing reasonable growth even after covid. 

Asset sold was mainly transfer of client list and contracts.Does it make sense for me to seek out a note purchaser?