And you're getting tax benefits.So many of my first-time Colorado investors are afraid of looking stupid because they got a "bad deal."

Joint tax return?  

(c) Do any of you have some specific market considerations I should take into account OR that I should be researching (high taxes, pertinent rent laws, etc.)?

I can save a fair bit on state tax and rent as I'm currently living in California. 

Avoiding accessive PM fees (personally I recommend most people self-manage)These will eat away at your ROI.

Same tax situation and more likely higher potential to appreciate faster.

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.

That's my biggest concern.But I should also look at the tax and long term benefits.

So, we bought the property 2 years ago, based on the valuation of the property considering income from 6 units.The sale deeds (from 2018- 3 sales) I could get from the City and the property tax statements (2023,2024) show that the property is zoned as 411 (apartments).

Their taxes and insurance may have doubled and they can't afford the house any more.I think geographic is tough because there just isn't typically the turnover any more in most areas.