As Chris points out, private money is your only option. you cannot get conventional financing because you can't get anyone to issue a title policy on an active foreclosure.

This could make you run into issues for getting conventional financing and HELOCs.

I have a good full time w2 job so coming up with a down payment is not an issue.

Would I have any issues with the insurance company in case something happens?

Seller may carry", search currently shows 201 properties, Active, in Maricopa and Pinal county, not including mobile homes, or land.

I am worried that the house might have had foundation issues before it was flipped. 

There is such a supply and demand issue in many markets that low rates will drive prices higher.

Area has no issues with finding tenants.

Put in a set amount at set intervals to minimize losses from buying at imopportune times.Hello James,Thanks for taking the time to respond to my post here - it's at least comforting to know that my Chicago market area isn't the only area facing this issue to the extent it has been. 

From it raining a lot the night before the property going active which brought to light foundation issues hidden behind the pre-existing finished basement paneling.