Just needs a few pieces of new decor (hence the $1,000 “repair” cost). 4) I used to live in Hawaii, so I’m very familiar with the culture, climate, property permitting rules, etc. 

It really won't make a difference regarding renter demand and if you allow storage the tenants will just fill it up with crap and leave it for you to dispose of after they move out.An additional bonus is that since you're in AZ it is more square footage that does not need to be climate controlled.

The $421K loan balance is interest only at prime rate minus .25% so it’s under 5% right now, but in possible rising interest rate climate it has me concerned.

I know deals are hard to come by in the present climate and I’m curious what locals think has better opportunity at the moment - house hacking small multi family units (or SFH with an ADU) vs live in rehab for SFR?  

In hot humid climates we are very susceptible to what is referred to as vapor drive.

We also want to live in a smaller area than Houston and both are from the West and miss the climate and mountains. 

The combination of high tech, medical, and decent climate makes me bullish on the region.

Climate 4. local attractions - NFL football, NHL Hockey

Any place can be a better tax climate Roger

Yes, heat pumps are awesome and work very well (modern ones) in the NB climate.