It all depends on your strategy, Phoenix is primarily a single family state so small-multi family is competitive with low supply.

If your house is old, value is low. 

@Amir PortalFort Worth (Southside): Affordable entry points with growing rental demand due to development and school proximity.Arlington: A solid mix of price points and strong rental potential, especially near UT Arlington or entertainment districts.Focus on areas with rising population growth, job opportunities, and low vacancy rates.

I have done it successfully on my last 2 buildouts, maybe 3, but only because I was able to acquire the properties at a very low price and I did all the work in-house (myself and some hired hands on staff).

I don't work in Nashville area but $165 per sq ft seems quite low to me.In terms of financing, I would speak with a few construction lenders and also hard money lenders.

Just focus on running the numbers carefully to ensure the property cash flows or at least covers expenses, and don’t hesitate to lean on resources here for advice.If you’re financing, look into FHA loans, as they’re great for first-time buyers purchasing up to 4-unit properties with low down payments.

Avoid leading with a low offer or mentioning how long it’s been listed.

@Rafael Ramos All your goals contradict each other:(1) Cashflow: buy Class C & D properties2) Appreciation: buy Class A & B properties3) Low Crime: buy Class A & B properties4) Why would you want your investments to lose money to lower your taxes?

I am still not sure how he gets positive cash flow while repaying 5 year loan back, unless he charges buyer in excess of 17% for 30 yr fixed loan and pays very low interest to PML lender.

Also the hit rate per property is really low.