If you are going to buy in a lower tier neighborhood, it should be one that has strong fundamentals and a thesis that supports rapid appreciation in a short period of time.

Some areas worth looking into:Centrally located neighborhoods like Alhambra and parts of Maryvale still have affordable properties with strong rental demand.West Phoenix (Tolleson, Avondale, parts of Glendale) offers good price points with room for appreciation.South Phoenix is seeing a lot of development and has solid long-term potential.Mesa and pockets of the East Valley can work, especially if you find something that needs light rehab but has strong rental demand.It’s definitely tough to get both cash flow and appreciation in today’s market, but if you’re strategic with your buy, rehab, and financing, BRRRR is still doable in Phoenix.

Key is kept in separate lock box, code only shared once red tape is completed. my golf cart does not have to be registered and titled but is allowed on neighborhood streets, so it's not treated as a street legal motor vehicle.  

If I gave my number and got it accepted I'd still be nervous, but I'd definitely pull the trigger on the deal.I feel I'm being reasonably cautious without having any recent comps and because the one house in the neighborhood currently on the market is about $15k below his estimated ARV despite being slightly larger.

So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.We use the following to rank Property Classes, in order of importance:Property Tenant Pool: closely linked to location, but not always.Property Location: closely linked to tenant pool, but not always.Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.

(Or “neighborhood experts”) You can offer some money too.

That’s the magic of real estate compounding over time, and it’s stories like yours that really highlight this.. from what i read in the street journal, that slow build often outperforms shorter-term stategies.From an investor-friendly agent’s perspective, being willing to dig into the neighborhoods (driving for dollars) and having a robust network.. from probate attorneys to local contractors.. can pay off big.

•Neighborhood impact – Too much Section 8 in one area can hold back neighborhood improvement if landlords don’t properly screen tenants.Would I recommend it?

Baseball bats and bricks thrown.And then when you go to the bad neighborhoods, it's even worse.All of you doing SubTo for the first time, carry with you your next of kin information. ;-) 

However, some investors don't mind this strategy if they prefer not to put a lot of liquid in up front and plan to refi out within a few years of closing (which seems to be a great option with the talks of the FED reducing interest rates this year).It really comes down to investing in a growing market, in a good neighborhood & building a great team to support you.