@Luis GomezA local architect indicated the cost to build from the ground up to be $275 to $300 per square foot. 

I'm completing two renovations and and was offered a house cleaning price of $280/per house, for two roughly 1.1k sq foot, 3 bed 2 bath houses.

@Kai Van Leuven 11 occupants in a 580 sq foot unit makes my 9 occupants in a 1000 sq foot unit seem okay!

Purchased the house 18 years ago for $120kCurrent mortgage $80k but could pay off tomorrow with cash if needed.Current Mortgage Payment $950 (taxes incl)Current rent $1400 per monthCurrent tenant has been there 18 monthsOnly a 500 square foot bungalow with one bedroom one bath.Very desirable part of Denver, and could sell quickly for $450,000Options1).

If you really like that State, then find a city where your ideal strategy works and connect with someone more experienced if you want to get your foot in the door.  

You put your foot down and they got it.

Does anyone have a good range for rehab costs per square foot in the Tucson market?

That would probably mean you'd be footing the commission.A lot of people that advertise on Craigslist don't want to deal with Realtors.If you found the place without your Realtor's help than it seems fair that you don't have to involve them.If you do have a signed agreement with them to represent you in a home purchase you should review it to see what you're obligated to.Best of luck.

@Julius Robinson my first was a 3/1 that had a foot of water in the basement, the existing electric structure removed, and no potable water run to the house.

While I understand that paying off debt will relieve you of stress and some monthly payments, I disagree with most that you should first pay off your bills.