SupplyLas Vegas is unique because it is a tiny island of privately owned land in an ocean of federal land.

I've seen concepts of tiny homes having been built from storage containers, but not entire senior communities.

Plus the added requirements around getting drawings and general contractor for even adding a tiny closet.

“Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” - Milton FriedmanAgreed Russel. 

Conversely, the number of small-multi family properties being built is a tiny tiny fraction of the number built from the 1950s-1980s in cities like Phoenix and Mesa.

Only if things go very, very badly, and you are in the tiny fraction of loans that default do you... go back to where you are right now, having "purchased" (foreclosed) on a property for 65% to 70% of what you believe it's worth (otherwise, you wouldn't lend 65% to 70% LTV). 

Nothing tiny (no legos!).

That's another "tiny detail" everyone keeps ignoring.

I was intrigued with the prospect of buying distressed properties in bulk quantities and finding local investors who could rehab them and put them back on the market.

If so, then they are not considered real property and you are dealing with the land value only.If they are stick built tiny homes on foundations, then that is something else.