Speak to fuzebox he is doing exactly what you are talking about in Vegas.
I've picked up a few houses in Phoenix, fixed them up and am renting them out. Houses can be picked up for $40 a sq ft which less than half of what it costs to build. You need a team wherever you buy to take care of the transaction and then fill the property amd a great person or company to do renos and repairs.
I don't know about the water restrictions in vegas but most of the water in Phoenix comes from surface water from northern snow packs and the Colorado river, so they aren't running dry any time soon.
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