That is, of course, the major problem when you use cap rate.

If so, you can't really pivot to short-term rentals there and have to capitalize on the inn vibe and in-house services.My major question is why is the current owner, who bought it after it sat vacant for twenty years, looking to sell you the problem they can't fix?

The fact that your property is in a strong area with high-quality renters and growth potential is a major advantage.First, revisit your numbers to include all expenses and potential tax benefits, like depreciation and mortgage interest deductions.

The kids were OK but the mother, who was really the payer, was a major hassle.

Quote from @Stetson Oates: The vast majority of disputes are over security deposits and the most a landlord could lose is 3x the deposit amount.Slip-and-fall or other major lawsuits almost never happen.

Rent for Retirement (@Zach Lemaster) specializes in new build surplus from major home builders, many in Texas.

However I've seen 1 bedrooms go for $1800 in the nicer part of the city, so this is for the majority of the C+ / B- apartment houses in the area. 

AZ is not prone to major natural disasters so investing there is less risky with regard to those types of setbacks.  

Also, real builders/experienced developers will often have a true technician, i.e. a civil engineer, architect, real estate attorney et al at least glance at the property info to make sure there are no major red flags.

I am not looking to make major improvements, but I am looking to enter and secure it.