Regarding the location of the Qualified Intermediary (QI), it doesn't matter whether they are based in New Jersey, Florida, or elsewhere.

It is located on a very scenic setting.

I don't think that makes sense, because the space certainly adds value, in my experience.But this does tend to vary from location to location.

Might be able to recoup with a different investment or location  Just spit ballin.

Mail would go to the office or another location. 

Stay disciplined and avoid rushing into deals without thorough due diligence.Resources for InvestorsIf you’re new to investing in distressed properties or looking to expand your portfolio, consider leveraging resources like:Local Realtors: Realtors specializing in distressed properties can assist in locating off-market deals and navigating complex transactions.Community Forums: Attend a local investor meetup or join online forums for the Phoenix market.Educational Tools: Search out webinars, workshops, or courses on investing in distressed properties.Final ThoughtsThe distressed property market in Phoenix is creating some excellent potential for the right investors willing to go the extra mile necessary to take on strategic risks associated with this category of real estate.

It is a pretty distanced from where I am at so I will be visiting the location tomorrow.

@Simon Packman Not sure where you’re located but I have Vermont Mutual in Northern New England for most of my properties and the most I’m paying for any of them is around $4400.

There is a major franchise that puts these together, writes their own lease (sale-leaseback deal) and surprise - Gives themselves rent holidays in later years in the lease.4) Realize there the return they give you is NOT guaranteed, so better history of the syndicator better the odds you'll get it.5) If you have the money, try to diversify and spread it around by prop type and location (ie make 10 buys of $100K vs. one buy of $1M)6) It's commercial RE - You CANNOT turn around and sell it if you need the money now. 

The location hasn't had a lot of demand which has made it challenging for him to find an end buyer.