Sounds like the first step is really to determine BFE with an Elevation Certificate, figure out LAG, and see if there's a chance to get the LOMA.

@Justin Waller The IRS has a "facts and circumstances" test to determine what is your main home.

We have our specific criteria and know how to analyze deals to determine if they work for our goals. 

An experienced property management company Management of your property will determine the viability of leasing property in Arizona.

The price you way is very important  and will determine the type of returns you will have.   

Charles Carillo: What is your determination on the cars vs personal items?

As in one of the comments, apart from geographic location of these lands, other social factors can determine the growth of real estate to mention, literacy leves ,GDP , urbanization, government policy, political stability and the like.

I got cold feet after the inspection revealed issues in the bottom unit including the 2 gas space heaters not functioning (going into winter), the flooring caving into a sinkhole in the kitchen without the ability to determine cause, and all the drains outside leading to the sewer were collapsed causing fear of flooding.

You've done some great calculations to determine the % allotment. 

If you are not purchasing using all-cash, speak with a lender to help you determine your price point and best investment strategy.Once you've got a better idea as to what type of deal you'll be pursuing & how it will be financed, connect with a local investor-friendly Realtor who can help you navigate the market.Another route that newer investors look into is to begin as a wholesaler or working with investors to help them find deals.Best of luck to you moving forward!