However, the rental value this area is very low compared to the Home values and mortgage rate.

Rates that low don't make sense especially if they're a no doc shop.

if they are a great PM 20% is totally fair. not too high and not too low

Honestly, I think you're estimated expenses are a bit low.

Flip side, for a third of that you are trained to find properties using creative finance taking over existing low interest loans that cash flow and you are buying in decent neighborhoods with every day lunch box Joes that have kids and go to work and pay rent on time. 

While I know Brandon and his team has experience, the going in cap rate is very low for MHP (I was told mid single digit).

Most lower priced condo projects are not very healthy and why they are low priced.

I am still not sure how he gets positive cash flow while repaying 5 year loan back, unless he charges buyer in excess of 17% for 30 yr fixed loan and pays very low interest to PML lender.

Strong rental markets with low vacancy rates are ideal for long-term holds, while areas with high ARV growth are great for flips.

It all depends on your strategy, Phoenix is primarily a single family state so small-multi family is competitive with low supply.