Reason why is if you go to sell it, people are not going to comp it based on 40 year loan.

This is the heart of the reason housing isn't mroe affordable, that landlords bear these types of costs every day.You could probably find cheaper labor, especially to haul away the junk, but not easily as an out of state investor. 

I have no reason to stay in Gilbert, other than it's where my family lives currently, so it's nice to be close. 

Do the math at a 6% loan rate.There's a reason many apartment buildings have been converted to condos and sold.

Any smallerunits just make them equivalents of a 10 x15. 3 5 x 10's= 1unitAlthoughI am counting them all as the same, the reason, I say count by sizeis for when you build.Nowlets calculate "Demand":Numberof units needed (Step 1) minus Number of units existing (Step 2) =Quantity to build.Town1:500- 400 = 100Town2:300- 100 = 200Town3:andso on.Thiswill help you pick which town you have the greatest potential forsuccess.

Quote from @Jessie Dillon: one thing that you can do is have the seller transfer the deed to a living trust that they're the sole beneficiary of, and call the bank to give them a heads up that they're doing it for estate planning purposes. then, a month or more later, buy the property sub-to, and change the beneficiary of the trust. the bank can not see who owns a trust, and if they ever come back and question it, you can just swap the beneficiaries again, show the bank that the seller is still the owner, then swap it back again when they buzz off. this is one of many reasons it's so important to keep a good relationships with the seller if you're buying this way. you have to work together on some stuff.In summary: fraud. 

I personally do recommend Columbus Ohio for many reasons.

what is the reason they are behind?

Additionally, any existing restrictions at the town level (there are MANY) will be abolished, unless deemed "reasonable" by the state.

The best market is likely a "Good" cash flow market that you have some ties to, in some way shape or form, or one that is a reasonable drive from where you live, if practical/possible.