Investor commentary
Scottsdale is an appreciation + STR play. Cash buyers and 1031 exchange capital dominate this market.
How to interpret Scottsdale's rental yield
A 4.9% rental yield in Scottsdale compares favorably to coastal gateway markets (typically 4–5%) and signals an appreciation-tilted market where cash flow requires careful operations. Always underwrite with the property's actual taxes and insurance — neither tracks national averages perfectly.
Recommended underwriting adjustments
- Reset property taxes to your purchase price, not the seller's basis.
- Add 6% vacancy as baseline; stress to 9% in worst case.
- Budget 8–10% management plus 8% maintenance + capex reserves.
- Verify insurance quotes from at least two carriers before closing.