You are a high w2 earner, The house is worth 110k today, you are buying from your grandma for 60k in exchange for free rent for life, upside ARV of 200k.The costs of owning the house will help provide tax relief on your high w2 earnings, you are buying a great chunk of equity that will pay off in the future, and you and your grandma are doing each other solids. 

Keep in mind that accelerated depreciation increases recapture tax (taxed at up to 25%) upon sale, though this can be deferred with a 1031 exchange.

I bet you were floored when the person ordered every package you had to offer!!

Your best bet is to keep liquid cash and avoid PMI.

This article presents three key factors to consider before deciding that now is the time to sell/exchange: 1) regulatory, 2) economic and 3) personal timing.1.

@Tj Collins You can 1031 exchange in and out of any state, you can 1031 exchange in and out of any investment real estate - farm land, apartments, commercial, single family investments, new construction etc...The big things are timing on the 45 day window, 3 property rule and closing in a certain amount of time.

If you're looking for the cheapest route, conventional may be a better bet.

You second property will rip I bet.

I’m hoping to find more success in Phoenix, but as you stated, the old fashioned way may be my best bet.

I am betting your gonna find a lot more friendly amicable persons than shut doors.