Some people don't mind this.

@Braeden Warg Distance targets different types of people.

People wanting 3 bedrooms usually have kids and I don't think that you're going too find many families that will want to live with another unknown family.The bathroom situation is going to be a problem.

I have heard this a few times and I want to understand from the investors perspective why that is.  

Areas I think would do well are those where people are moving back to or highly desired - Arcadia, Scottsdale, Tempe, Gilbert, parts of PHX, and Chandler / Mesa. 

I was not willing to have multiple people sleeping in 3rd floor bedrooms without fire escapes and risk the hazard of them getting trapped inside.

For example, it could be a matter of capacity that they dont have time to take on the extrta effort right now for a foreclosure like this or maybe they need to find these people to serve them properly.

Long-term rental and a short-term rental are two completely different business/investments.You should understand what each requires and see if you are comfortable with them.Short-term rentals, on paper, generate more income but require more work.

If you understand LLCs and have additional concerns, then you are probably at the level where a trust makes sense.

A big way to expedite this is to go to local meetups and attend local masterminds that will get you in front of people that are in the community you want to do deals in and partner with.