You would get equitable ownership into the property, but seller would be on title (just like any other mortgage until the balance is paid off). 

It could be an opportunity for you to buy a property for you to live in while having part or all of your mortgage paid by another unit.

Tenants were paying $500 a month on the mortgage, only about $140 or so was interest.

They will be second in line behind the first mortgage.

Why not buy a place (assuming you can get a mortgage) and rent rooms out? 

I have been looking into other sources of income and thought of getting my mortgage brokers license.I am well connected in my market and am still relatively young at 24 with lots of friends and peers that will be looking to purchase their first homes soon.

With a mortgage around 1200 a month and taxes somewhere betweeen 5k and 8k a year, it seems that P/I and taxes are right around 1700-1900.

Turning a property that might traditionally produce a 7-10% cash-on-cash return into one that produces 15-30% if managed properly.

Do you want Phoenix proper or do you want one of the surrounding towns?

Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.