Phoenix has a pretty diverse market, and while there’s no official A/B/C/D breakdown map, you can generally categorize areas based on price points, rental demand, and appreciation potential.For BRRRR, you’ll want to focus on places where you can still find properties at a reasonable price, add value through renovations, and get solid rental returns.

I first like to short list based on numbers and then deep dive.

DSCR will help if you are tapped out of conventional loans and you don't qualify for a traditional loan based on your personal DTI.

I also negotiated based on the home inspection findings.

While there’s no official A/B/C/D classification of Phoenix neighborhoods, here’s a data-driven breakdown of some of the best areas to invest in, based on median purchase price, average rent, and investment potential.Top Phoenix Submarkets for BRRRRAreaMedian Purchase PriceAvg Monthly RentAppreciation Potential (1-5)Cash Flow Potential (1-5)Maryvale$320,000$2,00043Alhambra$350,000$2,10043.5South Phoenix$375,000$2,20053.5Tolleson$360,000$2,15044Avondale$380,000$2,2504.53.5Glendale$400,000$2,30043.5Mesa (East)$420,000$2,4004.53Paradise Valley$1,500,000$5,50052Breaking It DownIf you're looking for the best appreciation potential:South Phoenix, Avondale, and East Mesa are seeing rapid development, infrastructure improvements, and rising demand, making them strong contenders for long-term value growth.If cash flow is your priority:Tolleson, Alhambra, and Maryvale still offer affordable entry points with solid rental demand, making them attractive for investors looking to generate monthly income.If you want a balanced investment:Glendale and Avondale offer both rental income and appreciation upside, making them ideal for investors who want the best of both worlds.What’s Trending in Phoenix Renovations?

If you don't have a US-based bank account, I would get one as that's a requirement by most lenders.

Hey Keith,I’m based in Portland but own a ten-bed Residential Assisted Living (RAL) home in Tucson.

So, if you have 10 units and you are going to pay $1,500 a month and you are working on an active income job, too, this is an easy switch due to the labor mentally and physically (even if it is just phone calls) to get these rentals running as a well-oiled machine.  

Obviously none of they knew of the fire or looked at the property in the last few days.At tax sale I have seen people have bought:US Army bombing rangeExpired lease on propertyhouse with 3 walls, 4th wall missingsliver of land 2 feet wide50 foot cliff, access by helicopter onlyland at bottom of man made lake (literally underwater property)wetlandsflood plainsunbuildable propertyfailed perk testhistoric dig site, can't disturbproperty with no road frontagecondemned propertyproperty already scheduled for demolition soonformer gas station with leaking gas and oil tanks undergrounddry cleaning plant with toxic wasteSuper fund sitechromium factory with tanks and barrels of an unknown liquiddistillery with full barrells (ATF and state government was very interested and wanted to seize and destroy those barrells)Bigger Pockets Podcast #82 

I'm Kristie Nguyen, a CPA based in NYC.