High taxes.

@Nathan Gesner you just have a high value lesson to everyone.

I've decided that finding "deals" in Arizona is unnecessary as there are other markets that one need not search high and low to find something that can produce a decent cash-on-cash return.

I've stuck with the tried and true reasons I've heard to keep my search ranking high (quality photos, stellar reviews, updates to my listing) and that helps but in slow season, when I'm not willing to cut my rates as much as some of my competitors, it can be a ghost town.  

I highly recommend working with him, but only if you're willing to put in the effort to build a business and though leadership brand!

If you haven’t already, I’d scope out the municipalities around town.. from what I read in The Economist, the Phoenix metropo area continues to rank high for job growth, which usually bodes well for new builds.

Target areas with high rental demand, job growth, and population increases to ensure strong occupancy and appreciation.

I have used the same contractor for a few projects, so I'm getting a break on my price but 140k, seems to me, very much on the high side.

It's a high risk strategy that you've chosen. 

Despite the fact that the market has dropped significantly both in rent and price, I still think the market should be considered high risk/high reward.