I still believe he’s better off with someone licensed in that seat to avoid any potential fair housing or other liability issues that can occur.

Try and meet with someone at the City to discuss - go to City of PHX Development Services and start there.   

I never regretted keeping my first house as a rental because it cash flowed very well from the beginning and as years passed and rent increased it became an outstanding decision .However, our home was significantly less expensive than yours.

It is a single family house and I am looking for a property manager. 

When I bought my second house hack, I was in way over my head, created more debt, and stress.

I brokered a townhouse development in the early 80s and we gave zero coupon bonds to the buyers as an incentive to buy.. and If I recall the bond held 30 years would mature and have enough that equaled the entire price of the home. 

When I look at the comparables over the last 3 months the average sale price is about $235 per square foot, which would put me only at a resale value of $495,000 ...not worth it.However, there are comps from January of 2022 through July of 2022 that strongly support $300 per square foot putting the resale price of the house at $630,000... totally worth it.My real estate agent, that I've  worked closely with for the last 4 years and have probably done about 15 deals with, ensures me she will definitely get $595,000 minimum for this property, and if I knew that for sure I would do the deal.

I told them when they moved in the hot tub and AC were luxury items that came with the house, but if they break I would not be repairing or replacing them.

Should i use part of a home equity loan to put a down payment on another house to rent out? 

I have seen more and more people put houses that should only be a long term rentals into service as a STR, as well as paying prices that will not cashflow.