I will be supplying the down payment for the mortgage and initial costs.

The same goes for material providers (roofing/electrical/plumbing supply companies, cabinet company).

Texas has a lot of land though, and I see new construction literally everywhere, which is the one thing that would worry me - a surplus of supply. 

Supply is extremely low and city dwellers are migrating towards the suburbs which are perceived as safer and more stable in light of COVID-19.

My home was not designed as an ALF, but minor modification fell on the lap of my tenant, but he was definitely well prepared and had ample experience within this realm. 

I think that as prices go up in the Springs and the supply keeps being strained that will be the case.

Not saying there's an endless supply of these, but they are out there.

Phoenix is a very job diverse market, massive population growth, the standard of living is relatively low (aside from real estate), there is a major supply shortage of "starter" homes and costs are high to build new homes which all create higher property and rent prices.

With crazy prices, no-contingency all cash offers, and a serious lack of supply I was ready to chalk it up as a loss and give up on real estate.

Ample cash reserves to deal with these issues and padding out the rehab budget for unpleasant surprises is key.