Hi all,

I invest in, and manage, single family long term rentals. I look for 1,700-1,850 sq ft 3/2s in the far north Phoenix/Scottsdale area. Areas like Cave Creek & Carefree Arizona. I am a full time real estate professional always looking at on/off the MLS properties.

I am curious what you all think are good metrics to hit when looking at opportunities in today's market, in this area.  The metrics I look at is cash on cash return, what interest rates you are getting, % down need to close, points that need to be paid, capital improvement cost (if substantial), and what your cash flows are looking like on these new acquisitions (i.e. +$200 a month after all expenses).  I am just trying to ground my expectations...I am concerned I am passing on deals that are "as good as it is going to get" right now.

I don't want to invest out of state (we just sold our last out of state rental (the rental did okay for 7 years, but did not perform as well as I wanted...but again, maybe my expectations are off)

I don't include items like cost seg/accelerated depreciation in 1st year cash on cash calculation...I look at it as the icing on the cake (because if I don't 1031, that depreciation gets recaptured).

...and it goes without saying, if anyone has some opportunities I am always happy to take a look.

Thank you so much, I think this information will be helpful to many of us up here in the North Valley.