@Surendra Chawla and others, for the Phoenix metro area, I found a very useful resource called the Cromford Index.This is put together by ASU's Head of the Real Estate Dept (Prof Michael Orr).http://getyourphx.com/refresher-the-cromford-report/http://cromfordreport.com/index.htmlThis seems to be a very unique and highly useful index specific and limited only to Phoenix area.https://www.youtube.com/watch?

Tax consequence is most likely a wash or a loss.  

This method leaves a lot of stress and unknown factors off the table and limits the pool of potential buyers to serious investors instead of dealing with the potential issues of individual buyers looking to buy a owner-occupied unit. 

The issue I run into here are limits on how many mortgages I can have in my name from various banks.  

Replacing side walks on a city property that is out side the city limits just added 2 weeks to the project. 

If this is a foreclosed property (you said Fannie Mae was the seller), your agent should know if your state has limits on back HOA dues if you're buying a foreclosed property.   

But California law limits the reasons for landlord entry. 

I am sure there is a lot of risk with it, but I think some research could limit it a bit.

Landlords should operate as a business to maximize their return and limit liability, but the business is still customer service.

I am going to tell him to pursue other options, he is worth keeping around so I don't want to risk the possible loss.