I've received 2 K1's so if this is fraud then i'd imagine they've committed a federal offence by issuing false documents to the federal authorities.

Then you have a basis from which to address it with the tenants when you take over or you have their authorization to withhold it from the security deposit. 

I am not an attorney, so this is not official advice, but I will comment on what I know.You need to register the property as a rental with Maricopa County.

They have to call, get it authorized, etc… maybe return the part, etc.  

Im not here to defend the author because just like you said we have no idea of the reno and associated costs.

I believe I can choose between a  City Housing Inspector or Authorized Inspector to conduct the inspection.

There's a real good chance that the lease requires them to do several things: upkeep on the unit is a big one (damage to property), weeds outside and landscaping (which encourage pests and insects to inhabit the property), pets authorized or not, additional tenants on the property that are not on the lease.

Talk to the local building official and get their take on the building's status.

How about we talk about government in service of Citizens, as opposed to tyranny where government officials see themselves as overlords above the law, who can do as they please and cooperate with organized crime to import massive amounts of illicit drugs that kill millions of Americans.

The population, as per the US Census Bureau, is officially increasing as of 2023 for the first time in nearly 70 years.