How I Built a 25-Door Rental Portfolio in Phoenix (and How You Can Too)
By Joe “The Real Estate Pro” O’Brien
Let’s cut through the fluff.
I didn’t inherit properties. I didn’t get lucky with crypto. I built my rental portfolio in Phoenix brick by brick—door by door—using smart strategy, grit, and a whole lot of financing creativity.
Now I help other investors do the same.
Whether you’re trying to get to five rentals or fifty, here’s the real playbook—especially if you’re investing in the Phoenix metro. Let’s dive in.
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Step 1: Start With One—and Start Smart
The first deal matters. Not because it has to be a home run, but because it gets you in the game.
Mine was a simple single-family rental in Phoenix. It wasn’t flashy, really didn’t have cash flow . I learned how to screen tenants, make repairs, and run the numbers. That experience built the foundation for every deal that came next.
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Step 2: Stack Up Smart Financing (This is Where Most Investors Get Stuck)
Here’s where I separate myself from the average “Zillow investor.” Financing is where your strategy either expands or dies. I didn’t just rely on W2 income and 20% down.
Here’s what actually helped me scale:
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Conventional Loans (for the First 4)
Yes, it’s still smart to use vanilla 30-year fixed loans for your first few doors—especially if you can owner-occupy and house hack a duplex or fourplex with FHA or VA financing.
But the bank will only let you go so far. That’s when the creative tools come out.
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Seller Financing
One of my secret weapons in Phoenix. I’ve done multiple seller carry deals where the seller lets me buy their property with a small down payment, and they finance the rest.
Why this works:
- No bank approval needed
- Flexible terms (I often negotiate 5–6% interest only)
- Faster closings
- Win-win for tired landlords or sellers with little debt
If you market right and ask the right questions, you’ll find these opportunities—especially in off-market deals.
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Blanket Loans for Multiple Properties
Once I had 5+ properties, banks got squeamish. That’s when I bundled several properties together under a blanket loan from a portfolio lender.
It simplified payments, avoided multiple closings, and unlocked new capital for growth.
Pros:
- One monthly payment for several doors
- Great for refinancing a batch of properties
- You can often cross-collateralize with equity
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HELOCs (Tap What You Already Own)
If you own a property with solid equity, a Home Equity Line of Credit (HELOC) can be your personal war chest.
I used a HELOC to:
- Fund down payments
- Renovate new purchases
- Bridge short-term capital gaps
Phoenix’s appreciation has made HELOCs a powerful tool—especially if you bought in the 2010s or early 2020s.
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DSCR Loans (Debt Service Coverage Ratio)
These are investor-focused loans based on property cash flow, not your personal income.
If the rent covers the debt payment, you can get approved—even if you’re self-employed, scaling, or leaving a W2.
Great for:
- Rentals that cash flow well (think West Phoenix, parts of Mesa)
- Investors hitting the limit on conventional loans
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Partnerships & Private Lending
I’ve also teamed up with investors—some brought money, others brought credit. In a few deals, I paid 8–10% annual return to a private lender who funded the purchase, while I managed and stabilized the property. I have also teamed up with new investors/ passive partners. My dentist friend!! We have a partnership of 80-20 and I operate the property for him. Our operating agreement is clear with goals and milestones!
It’s all about structuring win-win terms and being clear about who does what.
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Step 3: Create Systems Before You Scale
You can’t juggle 10+ rentals off a Notes app. Here’s what I recommend before scaling:
- Use a property management tool (AppFolio, RentRedi, or Buildium) ( Rent perfect)
- Document your vendor list (handyman, plumber, HVAC, pest, etc.)
- Automate rent collection
- Screen tenants using real criteria (credit + eviction history + income + vibe check)
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Step 4: Recycle Equity, BRRRR Style
Phoenix has experienced massive appreciation. I’ve used cash-out refis to pull capital from one property and invest in another.
That’s how I turned:
🏠 1 rental → 3
🏘 3 rentals → 6
🏢 Then used a blanket loan to consolidate and keep growing
If the numbers work, reinvesting your equity is the ultimate cheat code.
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Step 5: Choose a Scalable Niche
Mine is a small multifamily (2–12 units) and Smaller Single Family Homes. I use Section 8/HCV rentals. Why?
- Reliable rent (direct from the housing authority)
- Higher rent ceilings in Phoenix than many think
- Less turnover with good tenant selection
- Easier to scale with consistent income
If you want recession-proof income and long-term impact. Are there better ways to make more profit? Of Course but a consistent cash on cash return, and auto pilot system will allow you to scale and maintain that w2 income and not miss those family activities.
Choose your Niche. !! NO WRONG WAY JUST GO!
Step 6: Build Local Relationships That Compound
The right team in Phoenix will 10x your growth:
- Investment-minded Realtor ✅ (that’s me)
- Title company that understands creative deals ✅
- Loan officer who knows DSCR and investor options ✅
- Mentorship/Community like AZREIA ✅
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Step 7: Keep Showing Up
Markets shift. Rates rise. Tenants call at 2am.
But if you stay consistent, keep learning, and focus on cash flow > hype, your portfolio will build wealth on autopilot.
🔚 Final Word
I’m not just here to talk. I mentor Phoenix investors every week, helping them buy smart, scale strategically, and grow income-producing portfolios with intention.
Want to build yours?
📅 Book a 1-on-1 Strategy Call with Me
Let’s walk your journey together—without the overpriced guru course.