Buying a investment rental home is similar to buying an owner occupied home.  A houses primary main reason for existence is for occupancy by the owners.  Keep this in mind when looking for an investment home because it is more likely then not that it will be an owner occupant that buys the house once you exit this investment.

So what do you look for in an investment house?  Besides doing the regular financial, cash flow etc. look for the primary characteristics an owner occupant will.  What your looking for is properties in areas that will attract the best renters.  This means staying away from areas with high turnover and no hope of recovery or appreciation.

Good schools.  This is a big pull for many families into a neighborhood.  A great school district will always draw a better crowd. There are several good school districts that also have all the other good stuff behind them like. Even up and coming neighborhood like Sunnyslope (Sunnyslope, along Central Ave. is a great place to invest) will help draw in better residents and improve an area. 

The next thing you want is a great neighborhood with well kept homes, good landscaping and a feeling of community.
Look also for home close to transportation like a good freeway system and the roads inbound and outbound roads as well.  Just remember not to buy a home next to one of these major roads.
Nearby shopping, theaters are a bonus. 

Try not to buy in the outskirts of the Phoenix valley. Although some of these communities are very nice and the homes seem like a dream; new and cheap homes won't help you overcome distances, high gas prices and the trends for people to move to more urban areas of the city.

Now the house.   The best rental homes in general mush have 3 bedroom and at least 2 bathroom and a garage.  Something between 1,600sf to 2,300sf. more or less.  A little bigger is better then going lower then 1,600sf unless its a historic home or modern home.

Keep the interior neutral, so no red cabinets or green floors, but it must be nice.  Floor-plan is important.  If you find a home with a well layed out floor plan then even a 1,200sf home can feel much larger.  Some addition which will help in leasing a house are a good sized yard, up to date air-conditioners and good looking kitchen and bathrooms.  Most important is cleanliness.  If you buy a foreclosed home for a rental or any other home spend the extra money and time to have it really clean.  You'll attract a better tenant.

With this general overview you should have a good idea of what a good rental home should look like.   It's quite simple, but I still see investors buying rental properties where there are little if any tenants and homes with features tenants won't pay for.

If you're more interested in Phoenix multifamily properties you may enjoy reading Arizona Apartment Investor, our dedicated site for Phoenix income multifamily properties.