Hi Thomas, My daughter and I manage long term rentals in the Phoenix market and I can say that in the past couple of years we are seeing a trend of people doing exactly what you are considering.

typically you will have some skin in the game, if you do the numbers, run comps and follow trends, the probability of failure is mitigated.Don’t be afraid to fail, be afraid not to try.

Is the surrounding areas trending also with increased density?

Expertise and Experience: Property managers have specialized knowledge in managing properties, including understanding local market trends, legal requirements, and tenant relations.

I will offer this suggestion, If you can secure long-term tenants post-leaseback and consider future value-add improvements, the property could yield even greater returns.Also, keep a close eye on commercial real estate trends in Middle Tennessee, especially given the area’s growth.

Quote from @Deborah Wodell: I've noticed an increasing trend among investors looking for 100% financing or securing 90% financing and then seeking gap funding for down payments and closing costs.

One metric they provide is new construction sales, which I can use to calculate % of total sales and see whether that value is trending up or down.My question is, in general is a market more or less desirable if there are a lot of new builds hitting the area? 

When considering other locations/markets, check demographic trends - things like population changes, household income, job growth, etc.

Delve into market trends, neighborhoods, and property types that align with your goals.

Having a good game plan as an investor is key, making wise purchases, accurate budgets, holding subs accountable and to also know, yes, this may be the  current ARV at purchase, but how is this market trending and what’s our timeline.