So per the original poster, is the first property a bad deal as it doesn’t meet the 2% rule?

If Arizona is anything like Texas all you have to do is check the assumption box on the Texas standard purchase contract.

In order to meet the 25% down payment requirement, we have to consider other avenues. 

My annual vacation rents are 25%+ of purchase price and 3x what a standard monthly rental would generate.

Will try to make it to your meet up next week!

Cosmetically, it needs lots of updating, and it doesn't have some standard amenities like parking and central air that most expect in this neighborhood.

As Russell Brazil said there is a monthly meet up in the area.

Meet in the middle 

We have a lot of different investor meetings over here.

However it does run more risks of course once you buy it you own it.. as oppossed to buying already rehabbed and tenanted.. then its just making sure you do your home inspections etc etc.I know TK operators that do some pre rehab.. and do it well.. but they are not nearly as prevelant as the standard model now of rehabbed and tenanted. the other thing is a rehab and tenanted you can leverage into it day one.. pre rehab as stated is generally all cash then refi later to pull your cash out.