Junior liens are usually wiped out, though they may have redemption rights. 

Again, I'm not familiar with the AZ market, but there are usually things you can do to bring the cost down. 

I'm using 3% based on inflation percentage which is usually between 2-4% I believe. 

🤔🤔🤔🤔🤔🤔🤔You might offer an extra month  rent up front to start. 

Rural street with massive lots already has handful of remodels with some listing close to $1M ARV.From BP flip calculator:$900,000.00 After Repair Value ($460,000 List Price $200,000.00 Rehab Budget $150,000.00 Profit Estimated Repairs Total: $200,000.00Could use input on overall deal, as well as typical $cost/ft to add a second floor to bring total to roughly 3,000 sq ft. with a 2nd floor master and bath, perhaps an office or extra BR upstairs as well.

Yes, you end up paying for this in the prorations and prepaids, but if the property is cash flowing then you get to carve out more longitudinal margin and build up a little extra cushion by collecting rents on the first of the subsequent month without the cash outflow of a PITI payment.2.

@Rodney Buford, once you've got none of your own dollars left in the deal (usually after refi, if you've been clever/wise), then even $1.00 positive cash flow per month can be considered "infinite returns"!

As a buyer, I usually put 10% down, pay a little under 2/3 of market rent monthly as PI at 6%. 

I would have gladly paid the extra meter and impact fees to be provided an additional meter but that was not possible.

All too often you see the phrase ‘below market rents’ or some such thing, and it may be just that simple; but usually not.