In terms of rehabbing the property, the workflow can range from throwing a coat of paint on a wall or two, to an entire gut of the mechanicals, windows, siding, and flooring.

A person can't run a mechanic's shop without any mechanical experience ...and similarly, it's very difficult to manage a PM (or team of PMs) if you have no property management experience. 

Extreme weather conditions, or areas prone to flooding, high wind, tornados, heavy snow storms, high humidity, wildfires, and long stretches of freezing temps add up to more maintenance costs, unplanned repair expenses, more insurance claims and higher premiums, greater risk of injury, higher utility costs, snow removal, and more strain on mechanical equipment, roofs, siding, and so on.

As many have mentioned, this means hiring a Licensed Architect to draw up plans including Architectural, Structural, Mechanical, Electrical, and Plumbing information related to the Existing building and proposed scope of work, and to submit for the building permit.Some "Good News" here is that since you are Occupying the building as your primary residence, and since it is only 3 Existing units, you would be able to handle some of the work yourself, as the City will allow you to act as GC, as well as Plumber, and Ventilation contractor.

And, if contested:"While there is no reported Arizona case on this issue, based on the recent case analysis, it is likely that Arizona courts will consider:Whether the CC&Rs and/or the amendments materially restrict the uses, occupancy or behavior within individual lots;The approval mechanism (e., whether the approval was renewed by a simple majority or a super majority); andThe long-term practices and expectations of the Association and the affected lot owners.The ability of any particular Homeowners Association to amend an existing set of CC&Rs to restrict short-term rentals will depend on the terms of the existing CC&Rs and the facts and circumstances of the individual case.

As an aside, I find we often focus on returns and don’t discuss risk enough, I find myself more and more pondering risk return.If you’re pretty set on making the move then loaning yourself the funds from your 401k seems the most preferential mechanism since you won’t deplete your 401k, an action you later can’t reverse.

If you don’t have a laptop/portable printer be sure to bring several blank copies of your contract/authorization form.After you knock on the door and introduce yourself, let the seller know you’d like to inspect the outside of the property (don’t record a video or take pictures at this point).Next, go inside and inspect the interior of the home and all mechanicals (HVAC, H20 heater, service panel and basement/foundation).At this point you should have enough information to estimate the rehab costs of the home and make the seller an offer (if you don’t have enough information, or need to seek an expert opinion on a particular repair, go the end of this outline).NEGOTIATING WITH THE SELLER:There are two key parts of the contract that a distressed seller will care about:The purchase priceClosing dateHowever, what the seller will REALLY want to know is how much cash they will end up with after closing.Of course, this can’t really be determined until you know exactly how much the seller owes on the outstanding mortgage/s and any other liens/judgments.

Whom do you trust more to get your car worked on, some rand-o from CL or that sent a random mailer, or an ASC Certified mechanic who is part of the shop that you have seen in various town's, has a building you can stop at, and readily recognize?     

Many benefits to this route in my opinion.The inspection report (typically 10-20 pages) will:- highlight condition of mechanical systems: heat, gas, hvac, electric- give you an idea of which cap ex items need attention: plumbing, foundation, roof- detect hazardous conditions: termites, mold, asbestos, etc- summarize interior and exterior condition of the property- lastly, it sets the expectation and gives reassurance to tenants that you are on top of thingsThere are even tools out there that help you estimate repair/maintenance costs based on the inspection report i.e. repairpricer.comAll the best to you!

That alone will cost me $50-60k, and that is assuming HVAC, roof, foundation, mechanicals, electrical, plumbing are all in great shape.So asking $320k, minimum $50k work needed (this is my condition of properties, others may be fine with less).