Your friend the seller's gamble is that he'll be able to sell the place for his asking price in As-Is condition.

You trade profit for the convenience of having a PM. 

It could appreciate but I consider that gambling.

What are some efficient and convenient ways to collect cash rent?

Otherwise it seems more like gambling than investing and I am not a gambler.

Conveniently located in downtown Phoenix, walking distance to Chase Field, great restaurant and local nigh night life.

The income route, to me, still gambles that the rent will increase as fast or faster than expenses. 

Like everyone mentioned, betting strictly on appreciation is a gamble. 

. $3000 to $10000 houses are probably in the part that never will, but maybe it will it's a gamble. 

I’m especially curious because a few rentals were picked up by investors in my area at well over 25% above last year’s comps and I can’t help but wonder if they’re gambling on near term rent increases....or if they’ve just overlevered their way into non performing assets because of fomo.