Phoenix 4-bed: accept a $175 monthly shortfall?

Use insurance and property-tax figures that apply to your proposed ownership and financing situation, not merely historical amounts attached to the house. Those two inputs can materially alter a thin $175 margin, and the applicable treatment can vary by jurisdiction and circumstances.
 
At this point the decision seems straightforward: verify the rent and every cost, then negotiate price or financing if the property remains negative. If neither moves enough, buy only if the total expected return clears your hurdle without relying on an unsupported growth assumption; otherwise pass.
 
Build three versions: expected, stagnant and stressed. In the stagnant version, hold rent and value flat. In the stressed version, include vacancy, turnover, a repair and less favorable insurance or tax costs. It is a calculated investment only if the purchase price and your cash reserves make those outcomes tolerable. If the expected version works solely because rent or value rises, it is primarily an appreciation bet.
 
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