The seller is willing to finance 50% of the cost and defer payments for 5 years.

I would get out of that note as soon as possible to avoid any further charges, 10% in extension cost is the most I've seen recently.

Ask about replacement cost versus Actual Cost Value.

If you focus too much on cash flow right now, from abroad, you are going to get more maintenance and more costs with it.

Does cost seg study offset any w2 income or passive income only?

The cost of entry is low, and cash flow is high.

@Eric KajkaTHanks for the post   1) your FIL  will have  approx 2-3%  of selling expenses  assuming there are no realtors involved ..assuming 600K sales price  and existing loan amount  he will likely  net   a bit under the  400K  needed for AZ house ...he  will also likely have  some  costs  involved  with moving and buying the  AZ home .   

The properties are cash flowing with a low entry cost to purchasing the property.

One might also argue it's a shame to lose $1,000+ in inspection costs and time, however, my perspective is that money was well invested given the lessons learned and bullets dodged.I will do my best to answer any questions. 

These are all things that do not cost money and maybe can do a little family bonding walking the neighborhoods and writing down addresses.