Rookie Buying a STR in the Phoenix Area

[Chad Cherry]

Hi BP Phoenix! #Rookie here. My wife and I live in the North Phoenix area and are looking to buy our first rental property. We are about to close on a fixed-rate Home Equity loan on our primary house, which we plan to put as the down payment on a property. 

I’ve been analyzing properties in the North Scottsdale, North Phoenix, Old Town Scottsdale, and PV areas that could be good STRs. I know these areas well and so I’ve been comfortable with analyzing these areas. However, while the numbers are working well according to AirDNA, I am wondering if I should be looking at Mesa/Chandler/Gilbert areas for STR instead? Especially since our down payment will need to be $130k - $140k at 20%, and those types of properties are rather rare in the areas I’ve been looking. Are the Mesa/Chandler/Gilbert good areas for Airbnb in the Phoenix area? Any recommendations on neighborhoods?

One other option we’ve thought of is looking at Mund’s Park/Flagstaff area for a 2nd home/vacation property (only 10% down), but I worry that those markets feel more unstable in comparison to Phoenix with the uncertain future market.

Would love to hear some thoughts. Thanks so much for the help!