Also, if you don't actually have the ability to buy yourself, please stay away from preform closures and short sales....you're likely just going to tie up someone's property preventing them from finding a real buyer, then being foreclosed on. 

Just be patient and wait for a deal in a better area, or don’t buy at all to prevent losing money from D properties.

Is there an Arizona law that prevents this?

I want more passive income, I want the advantages to future financing that @Jerry Padilla referenced, and I believe that the renting it out on Airbnb is inviting a whole host of potential problems that one quality set of tenants prevent.

That way you can see for yourself if this is a good or bad deal for you.In the end, if this is the best you have and the deal still makes financial sense then don't let the higher cost of money prevent you from doing deals.If you need more help just PM me....Peter

My concern is, how do I prevent the seller from taking a HELOC or something without my permission?

Expenses are necessary and ordinary costs of doing business which include repairs and preventive maintenance.  

That way you won't run into issues preventing you from getting to the closing table.

@Darrin Carey - I have a conflict on Mondays that generally prevents me from making a 6:00 dinner and networking (although I may be able to appear briefly until about 6:30).

Whoa, this sounds a bit crazy and would generally prevent most lenders from actually doing the short sale.