People wanting 3 bedrooms usually have kids and I don't think that you're going too find many families that will want to live with another unknown family.The bathroom situation is going to be a problem.

@Braeden Warg Distance targets different types of people.

I was not willing to have multiple people sleeping in 3rd floor bedrooms without fire escapes and risk the hazard of them getting trapped inside.

Areas I think would do well are those where people are moving back to or highly desired - Arcadia, Scottsdale, Tempe, Gilbert, parts of PHX, and Chandler / Mesa. 

In the past people had "laundry rooms" and it was a revenue source, am I looking at this the same way? 

Just provide a cushion for the inevitable "rookie" tax that will hit.  

One has lasted almost 30 years with thousands of people walking on it annually and the second has been beautiful for 20 years with slightly less traffic.

A big way to expedite this is to go to local meetups and attend local masterminds that will get you in front of people that are in the community you want to do deals in and partner with. 

If you ever need to gut check something from a Detroit market expert feel free to hit me up.

They find and fix the deals and we sign the checks.The idea was amazing for people whose time is completely eaten up by our employers, looking for a way to create retirement with rental income.However, that is not at all what he did.In reality, he found the crappiest oldest homes ( more like death traps), that no other knowledgeable investor would touch, and upsold them to us for $20-50K more than they were worth, lied about the numbers, and charged us for repairs he never did.