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?

Run the numbers on ROI, rental demand, and financing before deciding.

There’s a ton of investment pouring in, job growth, and a growing demand for housing.

Renting your tiny home as a medium-term rental (MTR) is a promising strategy, given the high demand for smaller, affordable units in your area.

@Zach Polen From what I hear there is still demand for MTRs. 

How much demand is there?

Can take some time to find the right deal for long term rentals but is possible and I think will be great to hold on to as rents/demand grow. 

Like @Bryant Xavier pointed out we see steady appreciation and rent rate growth thanks to the demand driven by the university.  

@Khaled SeirafiA 1031 exchange from a multi-use property in the Bay Area to a multifamily in Orange County with a medium-term rental (MTR) strategy can definitely work, but location, regulations, and demand are key.

Also the demand for STR in philly seems to not really outweigh the benefits of a steady long term tenant.