A 2% transfer tax amounts to $5,815 being paid by each buyer and seller.   

I would give them suggested vendors, a consequence for failing to complete, a deadline to complete the work, and notice that I will inspect to verify the work is done to my satisfaction.After notifying the tenant, then I would contact the owner (phone or email, depending on their personal preference and my time) and let them know what happened and how I'm addressing it. 

My wife and I got into real estate for investment and tax purposes. 

Depending on your job, family, and other commitments can you afford to spend a ton of time in AZ while this is going on?

I took the tax deduction in 2018 for my loss.

Sounds like he may be getting hit with a stupid tax but hopefully that fee will get mitigated with insurance. 

An overarching passive income managing agent, with tax and LLC/trust expertise would be the perfect fit. 

Are you buying it with a mortgage and can you provide a pre-approval?

@Joshua Loh The process of buying a PRE-foreclosure home is pretty much the same as it is for buying any other home.

Also, by having to do this VRBO no longer remits my local taxes.