Am I crazy to think 1 percent rule doesn't work in Phoenix / Scottsdale?

[Sagar Mukala]

Hello community,

I'm Sagar Mukala from San Francisco, a newbie considering out of state investing in Phoenix area to build a portfolio of properties. It is appealing to me because of the ability to catch a short flight and land in Phoenix to manage the properties when needed.

My goal:
* Invest in a single / multi family property worth $300K in a quality neighborhood (class B or above) to buy and hold
* Target is positive cash flow, build equity over time

The following factors make Phoenix attractive to me:
* +2.3% population growth since 2020
* Strong Case Schiller index 
* Presence of large employers like Amazon, Walmart, and $40B investment towards a semiconductor facility that is projected to complete in 2026

Challenge:
* I'm consistently seeing rents in the $1900 - $2000 range for single family condos in (2B, 1 Ba) range making it a negative cash flow prospect

Questions to the community:
1. Does the 1% rule work in Phoenix / Scottsdale area? If yes, what are some quality neighborhoods (low crime rate, higher avg. house hold income, proximity to public transport etc.) you recommend investigating?

2. Are there any other favorable cities for out of state investors do you recommend I investigate further?

Thanks!