Many buyers in this market are experiencing challenges. 

(For example, IF I was able to purchase the first home (multi-family) outright, paid-in-full, then use a HELOC to pay for the down payment and closing costs for the second home, would that be a smarter approach?)

Try finding a lender that has a consultative approach and will walk through your first deal with you and really paint the full picture so you know exactly what you need.

Blanket notes are not de-duplicated currently when they are recorded against multiple parcels.Blanket notes are detected, but aggregating them is currently a challenge that has not been solved to our satisfaction.

The most effective approach is to analyze other short-term rentals in the area, reviewing their nightly rates and occupancy trends throughout the year.

Phx has it's own challenges and rewards.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

I understand the industry is challenging, especially so when the market makes it hard to pencil a profitable deal.3.

The problem is, you can't put the unique challenges that each single family home has on a spread sheet.  

What approach is correct?