Falling prices and historically low mortgage rates are bringing a flood of new real estate investors into the metro Phoenix market. It's fairly easy in many parts of the Valley to buy a small house, put a renter in it and realize a positive monthly cash flow immediately.
Here's a very brief tip for all the rookie landlords. Budget to replace the carpet and paint the entire interior every time a tenant moves out. Set aside several thousand dollars for this.
This way, if the house needs it you'll have the money. A freshly painted & recarpeted home will rent quicker than one that's been only cleaned. And if The Perfect Tenant just moved out and the home doesn't need new paint & carpet, you've got a nice little savings account. Which is good because houses always need something.
Rookie landlords: Budget for the expenses, not just the income.