@Eric KajkaTHanks for the post   1) your FIL  will have  approx 2-3%  of selling expenses  assuming there are no realtors involved ..assuming 600K sales price  and existing loan amount  he will likely  net   a bit under the  400K  needed for AZ house ...he  will also likely have  some  costs  involved  with moving and buying the  AZ home .   

The properties are cash flowing with a low entry cost to purchasing the property.

One important item to note: if you receive passive losses from bonus depreciation and do not have a use (or only a partial use) for those passive losses in that calendar year, they can be used in subsequent years to offset gains as well.

One might also argue it's a shame to lose $1,000+ in inspection costs and time, however, my perspective is that money was well invested given the lessons learned and bullets dodged.I will do my best to answer any questions. 

These are all things that do not cost money and maybe can do a little family bonding walking the neighborhoods and writing down addresses.

LTC is a loan to cost, or your loan to your purchase price + reno.

I consider the comps, capital gains, DOM, my time, opportunity costs, etc. 

@Michael Smythe He hasn’t used BP cost calculators but does provide rough numbers to help determine whether the property will cover the mortgage and even potentially cash flow.

Curious if anyone could provide rough cost to use when estimating for A/C replacement in Phoenix and Tucson Metros, ideally 3-ton, 4-ton, 5-ton replacement costs to account for varying home sizes.

Buy land out right and use it as your contribution into the project, we can fund the rest depending on cost.