Properties are generally much cheaper relative to the rent they pull in, than in NY.3) Lower fixed costs - lower real estate taxes for starters relative to your rent roll, etc.4) Lower variable costs - labor is A LOT cheaper here.  5) Less stringent code enforcement.6) Less maintenance - milder weather, and younger average age of homes make for less maintenance.   7) Diversification - low entry price to buy property allows and investor to manage risk by buying properties in different neighborhoods instead of putting more eggs in one basket.In additional to the benefits I listed above the city is growing so fast that homes rent very quickly, often times before the sale of the home.  

This plan assumes that I stop at the 10 year mark and immediately begin paying everything down as quickly as possible to then live off the rental income and help my future wife's dream of owning her own restaurant come true.

It seems that not paying your rent can get things moving pretty quickly, but understand that there is also a robust defense system here in the county.  

Other than a quick year at ASU back in my late teens, I have spent quite a bit of time in Arizona the past few years and have grown to love it.

If I'm honest with myself, the idea of renting back to him comes more from the lack of other ways to make my offer attractive to him.2 - The letter he has says the foreclosure proceedings will start in 2 days - is it already too late?  

If you don't do your own research on the area, you can lose money quickly.

Tell them you will pay them cash for a quick close.When you do all that, then contact a local RE Agent to give you a list of all the houses in that neighborhood that have sold in the last 5 years with all cash.

just wanted to do a quick introduction.

So a deal once found attractive based on which I bid is turning out not to be so attractive.

The liquidity of a note is based on its characteristics which make is saleable: pay history, equity, borrower credit, down payment, etc; (of course this is assuming its Dodd Drank compliant, has a good chain of title, etc) and the liquidity of how quickly it can be sold on the secondary market is dictated by price, aka yield.