Instead of evicting them, i was thinking is there some way that I could rent it back to him for very cheap (mainly to cover just the taxes/ insurance) ie 2k a year rather than the going rate of 2k a month for similar properties.

Before you think you're getting in for zero down, have you asked what kind of cash reserves you have to have to qualify for the loan such as X number of months rent, and X number of months taxes, and what about insurance are they going to require you to buy one years of insurance or something.

@Mario Morales - As some others have said I think the strategy is sound, but the key would be to find a distressed property that you can drive up the value with renovations so that the new value is 25% higher than the purchase price so you pay back your HELOC.

Similarly, if you put several Class D tenants in a Class A 4-plex, what do you think will happen to the property?

Interested to hear why you think texting is bad?

I think it will add more competition to the rental market and the buyer market specifically up in N Phoenix, Deer Valley, Desert Ridge, and then up into Anthem - but will bring up value throughout the county. 

(Property Meld for one)--- Owners often think a PMC can just enter a tenant's home to make repairs, but don't really understand the potential legal issues of entering when a tenant is not home.--- Owners don't understand the percentage of maintenance appointments tenants miss!

My thoughts were that this would be a short-term solution.However, the more I think about it, I’m starting to lean toward a cash-out refinance over 25 years, with a minimum payment structure.

I mention this because there aren't as many multi family homes on the market in PHX as you'd think. 

I also have a few older homes I think I have a couple built in the 1910's.