Mainly, i have family there that can assist with any issues, i live in California and if necessary could be there in half a day, and more importantly i have a contractor whom i know i can trust on quality and pricing.While not dead set on this, being completely green to investing, i certainly feel this may help me get started and diminish my risks as opposed to say Texas, or the Midwest, where it is completely foreign to me.I know the phoenix market is hot, some would say overpriced, right now.

As you no doubt are aware, as the interest rate goes down, acceleration of an amortized loan using a velocity account which charges interest produces diminishing returns.

I don't quite understand this so called "law of diminishing returns".

Mailing your prospects more often than once per week will run you into diminishing returns very quickly. 

For example if you are making 10 deals in 6 months working 4 days a week, and only make 11 deals the next 6 months working 2 days a week, you can start to spot the diminishing returns a little more easily, or you might find that the 11 houses in the 2nd 6 months were twice as profitable as the 10 houses in the first 6 months, and your productivity might not go up, but your margin does.

@Scott Trench thanks for the reply/acknowledgement and definitely didn’t want to diminish the hard work you and your team at BP is doing (just had to point out a pain point for me and others).

One bad wholesaler doesn't diminish the necessity and usefulness of our service.

West Mobile, Saraland, and Midtown are starting to boom, however, pick the wrong street and the returns are extremely diminished. 

You can sale FSBO however in my opinion that diminishes your credibility as a licensed agent. 

I would be making less money while the property value diminishes at the same time.