If you had more experience in construction and/or rehab, my suggestion might be different.  

I actually purchased my first home before the age of 30 in CA, and invested in several REIT companies (some I worked for previously as VP) including American Homes 4 Rent, Public Storage, and a few others including retail property portfolios. 

Any suggestions on where to start?

I'm not suggesting that they are, but I'm curious as to the market forces you are witnessing that would cause you to say that.

I might suggest checking out smaller cities in Arizona outside of Phoenix. 

I might suggest looking at parts of Arizona as its closer and just about as affordable. 

I am late to the party here but you made the right choice, you were paying retail on this one. 

I not by any means an expert, but I would suggest having alternative outs planned for anything you might buy for a student rental in case a project doesn't pan out.I've recently found the Tallahassee Investors Network and those guys put together a great gathering once a month that I'd highly recommend you make the trip over for.

The assessment says the lot is retailed at roughly $30k (with a tax value of about $7k).

The assessment says the lot is retailed at roughly $30k (with a tax value of about $7k).