Here are a few to watch out for:Property Condition: Most distressed properties need extensive repairs or renovations, which add to your initial investment.Competitive Market: With Phoenix's popularity among investors, competition for the best deals can be intense.Complex Deals: Foreclosures, auctions, or short sales are much more complicated compared to regular real estate transactions and usually require specialized knowledge.Tips to Successfully Navigate the MarketDo Your Research: Understand the local market conditions, including neighborhood trends, property values, and potential rental income.Build a Strong Network: Work with professionals who specialize in distressed properties-such as brokers, contractors, and legal experts-to make the best decisions.Assess Costs Carefully: Factor in the cost of repairs, holding costs, and any potential financing issues when evaluating a property’s profitability.Be Patient: Finding the right distressed property takes time.

They do not care.

Further, people committing to a rental for 6 months or more tend to treat the furnishings with much more care than the 30 day stay tenant. 

Let me preface my story with my definition of freedom: doing what you enjoy for a living with the people you care about.My name is Peter Neill.

As for the zip code you mentioned, some of the areas in there are nice due to steady rental demand, you just want to be very careful on the neighborhoods you select as some areas will be better than others.

Similar for pets.Especially in the city of San Diego, I would be careful about violating the tenant protection act.

Focus on markets with strong rental demand and appreciation potential, and be sure to run the numbers carefully to avoid overleveraging.Good luck!

Your IRA can borrow, but you have to be careful to not personally guarantee it.

I do own two triplexes in Scranton, and I will say the one issue is that you are going to be taking care of the utilities normally if they are not on separate meters, which could take a good amount of money away from your overall cash flow. 

I had the opportunity to talk with the owner and he's a great guy, he did his best to make sure I was well taken care of.