However, it does not look like the tenant on the lease is living in the property.

Do you live out of state?  

I live in Southern CA where cost of living is high as is real estate.

Seek out single-family or multifamily homes with space for conversion, extra living quarters, or rental apartments.

Once built use one home to live in and sell the other(s) to supplement the cost of the primary home?

Fortunately I can facilitate all the improvements at cost but is it realistic to think I can draw a higher end renter that is willing to pay above market rent to live in much nicer appointed home?  

I live in North Dallas now days but have lived all over the metroplex.

Should i offer to have him look for another living situation?

But there's a reason prices are so high - everyone wants to live here! 

Hi guys,I have a question about the tenant who lives in one of my rentals in Phoenix.