Phoenix contains a rare combination of elements that have created an outstanding market for distressed property investments, including the following:Cost Savings: Distressed properties are sold below their market value and enable investors to take hold of properties at a trifle compared to traditionally listed properties.Strong Market Fundamentals: Being among the fastest-growing cities in the country, Phoenix ensures a high demand in housing and rentals, hence good potential for resale or income from rentals.Value Creation Opportunities: Most distressed properties need renovations; thus, such situations present opportunities for investors to increase equity by adding value.Population and Economic Growth: Phoenix remains among those cities in the country which are attracting more and more residents and business; therefore, this presents good, long-term appreciation possibilities of property appreciation and income creation.Challenges to ConsiderWhile the rewards can be great, distressed property investment is not without its challenges.

In my case, all three sellers were older and tired of dealing with tenants, but they liked the steady income.

The way I saw it, I got paid to earn an invaluable education even if at the time it seemed it was half the pay and double the work.

If so, and you can find time to start a side hustle that can generate some income (even if $100), you can rollover your pre-tax IRAs/401k into a self directed 401k.

I have two LTRs and want to get a STR to offset my W2 income.

--> Passive income doesnt mean tax free income.

Oh....you can also pay off the mortgage even faster with your ample income or soon to be ample income.  3-5 year payoff time is definitely possible. 

You need two years of steady income before you can qualify for a loan.

They are exceedingly rare, thus very expensive, but I believe they represent an excellent long term steady income and store of value.  

It lets you focus on managing the property and getting steady income right away.