I get a lot of questions from the CA & Socal folks about how life in the fast lane in Arizona is doing and if it makes sense to invest Out of State for them.I still invest a lot in Phoenix and I'm very comfortable...

Some go for $700k plus and are designed as high end student rentals and others, in Bryan,  sell for $200k but need a lot of work.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I'm curious about the high cable expense and $2,400 in utilities. 

In most cases I was told that they had high risk carriers who would write a policy, but they had limited protection and higher premiums.  

It sounds like you'd lean towards the importance of working with a local attorney to set up an LLC, especially in contexts like mine, with the recent acquisition of a fully occupied duplex.

Investing is highly individualistic.

U want your parents to talk to their CPA FIRST.. if they go the development route they are now ( depending on the amount of units) creating inventory.. which will be taxed at ordinary income rates ( very HIGH)if they just sell they can 1031  and move on to something else.. many times when you run the math consider the risks of a partnership.. the sale of the land is far better than thinking your going to make some profit.. 

Even so, how much could that really impact?

@Jason CroweHi Jason,If you have a high enough cash value in a permanent life insurance policy (either a policy on yourself or one you own on someone you have an insurable interest in like a child or spouse) then you absolutely can leverage it to finance a real estate deal.