It is the nature of the beast.

The house appraised at roughly what I paid for it back in 2011, even though I've improved it greatly (got rid of a hot-pink kitchen, lime-green carpet is now beautiful hardwood floors, and it has a brand new roof).

I also want to believe that you know the consequences of not protecting your asset properly, some advice you to insure you rental property and do the transfer of title from LLC to your name but anything short of a comprehensive insurance package is not enough for a rental property with this it can cover for additional increase in construction cost in case of the unexpected or natural disaster. 

Or @Joel A. suggestions are beautiful if you wanna do it on your own. 

Beautiful area!

wow beautiful homes and good info.

Mine is a beautiful 2004 higher end model that was well over $100k new.  

@Andy Whitcomb Beautiful furniture!

@Ron Cornwell AZ is a great place to live, abundant sunshine and lots of natural beauty and recreation to enjoy.As for neighborhoods, let's discuss the potential price range you intend/want to invest in for your primary residence and then we could target a little closer once we have defined some basic parameters.

Reservoir Hill looks beautiful and nice housing stick close to downtown.