There is a barrier to entry, and the city is pro business, but our market had much better metrics.Lower entry points should not factor into getting in a market.

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.

The structure will depend on the down payment, quality of borrower, terms of note, your cash out of the note sale needs, and other factors. 

•Integrate a system to rate property conditions using AI/ML models.

This will help you understand the qualifying requirements, key factors to consider when purchasing, and how to assess whether a property might be a good investment at first glance.

Other factors as well of course: DTI, the LTV, primary residence vs investment property, etc.

Also, there are many integrations available with QuickBooks so that receipts, bills, invoices can be sent to Quickbooks or outside software to read each and automatically create the transaction and we just have to review and approve.

The factors you mentioned are very important to keep in mind for any investment, but I like investing in areas I know. 

* What are some factors to consider when identifying these hot spots?

An LLC is potentially one minor factor that might contribute to the evidence that you are running your rental activity as a trade or business, but it's definitely not required that you have an LLC to qualify.