Neither option is bad and they both have tradeoffs, happy to talk about it further in person if you want as I live in East Mesa. 

On a lot there is a  front house that is a 2 family home , and then in the back is a 3 car garage that has a 2br 1ba unit above it..

It ultimately comes down to your budget and desired level of privacy in your living situation.

Example of one I have when I lived in a different state. bought from a highly distressed seller for 10k cash.

The living room with the TV (no camera). 

It will cover you in your cars, your personal home, and your rentals. 

My biggest fear is losing a lot of money, as I'm still working a day job and living in an apartment.

Yeah go to the closest gas station and sit there for 10 min, who is going in and out are more people walking in than cars, the location of an investment is the one thing that you can't change.

I also live and invest in the greater Phoenix area and work with a lot of newer investors to start their RE investing journey. 

These are good guys  from the East bay they have both live and virtual meetups.