@Breeya Johnson the entire market currently is in a cooling cycle with price declines and inflated expenses like property taxes and insurance.

Not only will you lose your property tax exemption, but you may need to secure LTR tenants.

And their tax advantages go away when you decide to quit and spend the money.

No need for tax returns, Verification of Employment, or income.

@Jake Santos don’t have experience renting out but have plenty of expertise from a tax perspective in regards to this.

They sold two appreciated duplexes in Dallas and we turned them into 8 units in Mesa, AZ with higher cash-flow, and much closer proximity to Southern California.I'll add to your Phoenix "pros" list:1) Landlord friendly rental rules2) Easy evictions in < 30 days3) Rents are rising faster (on a % basis) than many other metro areas4) Low property taxes (and the property taxes don't sky rocket after a purchase as they do in CA)5) Very low vacancy and extremely high tenant demand.

@Renee R. just a heads up that there can be significant tax implications to hiring a property manager vs. self-manage.

In 2021 we bought the building for $1.5M using private lenders, pushed the occupancy from 50% to 80% occupancy and it appraised for $3.125M, allowing us to pay back the private mortgage.Right now, we are in the predevelopment process of design and piecing together the capital stack for the redevelopment deal, which will be made up of historic tax credit equity, RestoreNY Grant, DRI Grant, etc.

I get people calling crying they want to sell their lot they bought for $50,000 and I tell them they're lucky to get resale at $5,000...then of course they don't want to sell....but if they don't sell they're paying $1000 year plus property taxes for a lot that likely won't go up in value for years.So think about your exit strategy. 

Along with the new tax cuts!