The timing does suck because this issue came out of nowhere at the end of their lease.

Here are a few to watch out for:Property Condition: Most distressed properties need extensive repairs or renovations, which add to your initial investment.Competitive Market: With Phoenix's popularity among investors, competition for the best deals can be intense.Complex Deals: Foreclosures, auctions, or short sales are much more complicated compared to regular real estate transactions and usually require specialized knowledge.Tips to Successfully Navigate the MarketDo Your Research: Understand the local market conditions, including neighborhood trends, property values, and potential rental income.Build a Strong Network: Work with professionals who specialize in distressed properties-such as brokers, contractors, and legal experts-to make the best decisions.Assess Costs Carefully: Factor in the cost of repairs, holding costs, and any potential financing issues when evaluating a property’s profitability.Be Patient: Finding the right distressed property takes time.

If the seller handles the repairs, it’s usually not an issue, but you want to verfiy what your lender requires.Cleveland Heights checks a lot of your boxes (hospitals, strong tenant pool, walkability, and appreciation potential).

If you are interested and willing to house hack it is a good way to gain experience dealing with some of the issues you would face as a landlord, but definitely subdued since you are also living there. 

I do own two triplexes in Scranton, and I will say the one issue is that you are going to be taking care of the utilities normally if they are not on separate meters, which could take a good amount of money away from your overall cash flow. 

I have FAR MORE MANAGEMENT ISSUES because of the SHARED PORCH.  

Thanks for the blog link!

Regulations & Compliance: What's the best way to research local STR laws and avoid potential regulatory issues?

I haven't had any issues with my tenants either.

Need some more statements from them but liquidity shouldn’t be an issue either.