Look at the trends and determine not if you would visit the restaurant but if your target demographics would.

He said, in the call, he was wanting 65k, but after inspection I am seeing 30-40k (bad shape!)

If the house and yard are in good shape and did not have any capital expenses coming soon I would probably sell it out to avoid the taxes that would become due or you could do a 1031 exchange if you sold and could invest a little extra money.  

It is in decent shape but has no appliances.

The area if pretty nice and the house is in pretty good shape.  

It's now a bit below my desirable COCROI but I feel it has a lot of potential for appreciation over the next couple years with the neighborhood trending towards a B from a C+. 

All the rents are different values even though all the units are the same, 2 beds 1.5 baths. maybe some of them are in worse shape and based on some pictures, some units might have window AC units.Rent Income                          ~ $98,940          ($8245 mo)Insurance                               ~   $6100Taxes                                     ~   $7860           (Can this be reduced using deductions?)

The best part is all the mechanicals are in good shape, electric, hvac, and water heater all recently updated.

Given these are new they are turn key as you wanted, now they are not the rock bottom prices, but they will cash flow and appreciate if the market continues its trend for a while in Colin County.Here is one for sale, Realtor.com listing, picture below is a similar house built some time ago.

I looked the other day, currently, there are 550+ new developments selling in Phoenix now, and to me, it is shaping to be another 2008....Not sure if I would jump in now....https://www.newhomesource.com/communityresults/arizona/phoenix-mesa-area