This was written about investing in Seattle, Washington real estate, but it’s very true for Arizona real estate investing as well.

Try to find a property that you can buy at a low enough price, and with low enough mortgage payments, to at least break even with your monthly rent income. That probably means making a fairly big down payment of 10 to 20 percent and shopping very hard to find a decent deal. If possible, try to stay within a 30- to 45-minute drive from your home in order to make it easier to rent and manage the property. However, you may have to go farther out if you live in a fairly expensive housing area. Don’t rush, take your time and make sure you buy right.

Except in Arizona I don’t know if you could find many properties that would cash flow with only 20% down.