It all depends on the local ordinances.The real question is, if the area has been zoned retail, how desirable will the property be to a future homeowner?

I currently don't have plans (or desire) to have employees under me.

I have a Phoenix short sale condo rental I have been in the works to buy since February and would like some feedback on the investment thesis.I am planning on paying off the condo through additional principal payments to have it as a long term rental property to help support a financial independence plan.The condo unit is 2br/2ba, 15 years old, and is located in a desirable area with luxury amenities.

Back to your question though, most beach properties are desirable, but you're going to need better insurance - hurricane season is almost here - and you're going to have to pay more for the property itself.When you're looking at multi-family properties, you should be able to find some with at least partial seller financing, so you won't have to tie up as much of your credit and won't have to buy a property all for cash.

I'd either run away from this or buy it if you can get it extremely cheap (for what the land is worth) and you're in a desirable neighborhood (good appreciation or close to schools, businesses, public transportation, etc.).

We have no desire to renew their lease as we will be living in the unit they are in.Thanks!

I will echo what others have said here regarding your desired returns out of state.  

I desire the flexibility and awesome it brings.

There are plenty of pitfalls and perils along the way and a strong mind and desire will be the best tool you bring along for the journey.

At least where my property is located, a $40 application fee is not unusual and if you have a desirable property, people will pay it.