This always seems to come down to Millennials being some rare, exotic hothouse flower of a generation that are somehow both unable to understand basic arithmetic and hold wildly different viewpoints about their housing security from all who came before...because.

@Davey Wilde I appreciate the public post, as I am trying to make some lists of BP folks in my area whose business aligns with my interests (currently thinking buy and hold for rentals, and would consider either single family or small multi-family to start).  

Opinions vary wildly on this topic, but a $450 month unit is always going to be rough.I'd wait until those tenants leave naturally (evicted, move out, whatever) then get in and do the rehabs and place what you hope are good tenants. 

Rehab costs can vary wildly by what the quality of product and especially the contractor.

Unfortunately pretty much nothing needed to start in Arizona, it's still the wild west

This group is a wild, wild west of contractors and handypeople but the CON-tractors tend to not last long before being reported. 

I respect his work ethic (certainly), but he is a little wild (for sure).

There are definitely exceptions and wildly different markets.  

Plus, if you have a property worth $50k (not recommended) and the boiler goes out, that's the same as if the boiler goes out on a $100k property, so the ratio of reserve to downpayment is going to be wildly different for different prop classes.Since you're just getting started, I'd focus on building your capital to a point where you can afford to get into a solid asset class with a good $10k buffer behind you, if you go the rental route.

Best of luck in your journey - you're in for a wild (but very fulfilling) ride!