Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Both approaches fail because they forget the most important part of the deal: EMOTIONS.

You could also try to find a seller who wants to do seller financing and take a risk on you, which would be challenging to find.

Real deals with real economics rarely face allocation challenges.

The challenges experienced in the cases mentioned above and elsewhere would be non-existent.

But it's looking like a long-term rental is not going to be the best approach for the area I'm looking at. 

We have around $150,000 available for investment.We understand that finding deals in this price range in Phoenix itself might be challenging, so we’d love to get your input on areas near Phoenix where our budget could work.

Purchase price: $145,000 Cash invested: $60,000 Finding a move-in-ready home that offers modern upgrades and country charm can be challenging—but this fully renovated 4-5 bedroom, 2-bathroom ranch is the perfect solution.

I am not a huge fan of them personally as they are PE investors and have a very, very narrow view of the industry and how it should be approached. 

The second challenge would be finding land in a decent enough area where building a rental makes sense.