Last, if the point is to make the best return on your investment, why not utilize bank financing and develop a self-storage facility instead? 

I have tried with two smaller lenders(National Bank of Arizona and OneAZ Credit Union) and they have both dragged it out for several months before deciding they wouldn't do the loan for what I perceived to be fairly silly reasons(Management didn't like that the tenant had only been in for 1 year, Management didn't like that the structure used to be a residence, management didn't like that 3 years ago I took a loss in a completely unrelated business etc.)I am hoping that someone out there has had some success purchasing or refinancing commercial property like this in AZ and can put me in touch with someone who actually completes deals like this.

Your best bet is likely a local bank.

For me, the biggest benefits are the fact that someone else (bank) finances the bulk of your purchase while another someone else (tenant) pays the loan back, all the while you're cash flowing.Thanks for the article.

Would the bank consider me a risky lender even if I have a great credit score?

I'm curious as to what issues I should be considering when dealing with these properties or with certain banks or even non bank owned properties?

@Anthony White I think a portfolio loan with a local bank would probably be a good idea.

most of your small commercial banks in town will take a stab at it.. if you have deposit relationships with them that are meaningfulPremierlewis and clarkM and Tpacific continentalbannerthen you have the credit unions.

I did some real-estate work in NY for banking clients and I was shocked by how different the law and customs were between the two states.CPAs have it a bit easier since they mainly focus on Federal Taxes (which is uniform).

Being the sole heir I was able to refinance with plenty of patience from the bank.