This area was always a very high risk and should they rebuild?

DOM can be minimized by a number of different factors including the quality of marketing, rent price, availability to show. 

Even though there is low inventory, interest rates are high, and many properties don't cash flow, look harder there are always deals, you just need to find/make them.

I have done this before and now find the risk just to high.  

One of the first deals I did was take down a 26-parcel deal in a highly distressed neighborhood and listed it on the MLS.

Some don't like the idea of a 2nd position lien that is very small and very high on interest rate. 

Another thing to note, these are high-paying jobs being moved to Phoenix. 

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.

I'd hate for a temporary dip in the quality of the tenant pool to be giving my landlord "spidey sense" false alarms on account of taking an extra month or two to fill a unit.

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.