Undoing the mess via amendments, etc… always tends to be laborious and more expensive then getting these right the first time.Why are  CPAs seemingly not always in the room when GPs and their attorneys build out their RE Funds? 

My parents live in Prescott, Arizona and it seems to be an area that has continued to boom, has low vacancy rates, and a bit of a shortage of rentals.

This is why negative CF and low cash flow(negative CF waiting to happen) is bad. 

STRs are a double edged sword, and while I understand the concern about affordable housing, it's actually the tax dollars from the STRs that fund the affordable housing communities on our island.

The median home price is also very low nationwide which creates a low barrier to entry.

It may make sense for you to buy a 3-4 unit building that you can move into one unit and get the low down payment on for owner occupied loan.

With the technology available today allowing lenders to more easily monitor deed transfers, and interest rates on new mortgages double the rates 2 years ago, I would only do a sub to transaction if I were sure funds would be available to pay off the existing mortgage should the lender decide to accelerate .  

I think you are correct in your thinking - a lot of lenders right now are pricing 30-year fixed rate and 5-year ARMs essentially the same, with only the slightest benefit to the ARM option - generally because there is a very low probability priced in that rates will be higher in 5 years. 

Rent is $1650, which is on the average to low side for that area. 

It is untenable for Private Companies to make a profit without buying another company that is leaving Florida and then declare Bankruptcy to Steal the companies leftover funds.