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.

I would get out of that note as soon as possible to avoid any further charges, 10% in extension cost is the most I've seen recently.

Taxes and insurance costs are "covered" in the rent.

The cost of entry is low, and cash flow is high.

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

@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 .   

Just another cost that a lender has to consider on a PERFORMING asset.

If you focus too much on cash flow right now, from abroad, you are going to get more maintenance and more costs with it.

Remember, the only cost to the REI is the cash that comes out of their pocket...the rest of the "total" cost, is paid by the tenant, so the cumulative CF must recover that cash outlay to be come profitable. 

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