Buying Arizona Rental Property From Out of State With DSCR
Yes, you can buy an Arizona rental from another state with a DSCR loan, because the loan qualifies on the property's rent rather than your local job or tax returns. Pillar Mortgage Group in Scottsdale finances investors nationwide, and this guide covers the four things out of state buyers need to line up: vesting, closing remotely, management, and Arizona landlord law.
Quick facts
- Pillar Mortgage Group places DSCR loans down to a 0.75 ratio, LLC financing allowed, no tax returns or W-2s (Pillar Mortgage Group, DSCR Loans, accessed October 25, 2026).
- Typical terms: credit around 660 or higher, 20 to 25% down, reserves of roughly 3 to 6 months, loan amounts up to $5 million (Pillar Mortgage Group, DSCR Loans, accessed October 25, 2026).
- Arizona rental owners who live out of state must designate and record an in-state statutory agent with the county assessor (A.R.S. 33-1902, accessed October 25, 2026).
- Arizona caps security deposits and prepaid rent at one and one-half month's rent (A.R.S. 33-1321, accessed October 25, 2026).
- Arizona notaries may notarize remotely for signers outside Arizona as long as the notary is in Arizona (Arizona Secretary of State, accessed October 25, 2026).
Why DSCR fits out of state investors
Conventional loans qualify you on personal income and debt to income ratio, and they cap investors at 10 financed properties. A DSCR loan asks whether the Arizona property's rent covers its payment, so your W-2, your home state and your tax write-offs do not drive the approval. Pillar Mortgage Group shops multiple wholesale DSCR lenders and finances investors across the country (Pillar Mortgage Group, DSCR Loans, accessed October 25, 2026). For the full comparison, see DSCR vs conventional investment loans in Arizona.
Start by testing the ratio on target properties. Our guide to calculating DSCR uses Phoenix rent and value data, and our city guides cover DSCR loans in Phoenix, DSCR loans in Mesa, DSCR loans in Gilbert, DSCR loans in Chandler, DSCR loans in Tempe, DSCR loans in Sedona and DSCR loans in Flagstaff.
LLC vesting for Arizona rentals
Many out of state investors close in an LLC to separate the rental from personal assets. Pillar Mortgage Group allows DSCR financing in the name of an LLC (Pillar Mortgage Group, DSCR Loans, accessed October 25, 2026). You can form an Arizona LLC or use an existing LLC from your home state, and the choice has legal and tax consequences, so involve your attorney and CPA. Lenders typically ask for the articles, operating agreement, an EIN letter and a certificate of good standing, and requirements vary by lender and program.
If you form an Arizona LLC, the Arizona Corporation Commission requires a statutory agent with a permanent, full-time physical or street address in Arizona who accepts the appointment in writing, and a notice of the filing must be published after the Commission approves the articles; publication in a newspaper is needed when the agent's street address is outside Maricopa or Pima County (Arizona Corporation Commission, Articles of Organization instructions, accessed October 25, 2026).
Register the rental and name an Arizona agent
Arizona requires residential rental owners to keep their information on file with the county assessor where the property sits: the owner's name, address and phone, the property address and parcel number, and the year built. When the owner is an LLC, corporation, partnership or trust, a responsible party must also be listed. Owners who live outside Arizona must designate and record a statutory agent who lives in Arizona to accept legal service. Changes must be updated within 10 days (A.R.S. 33-1902, accessed October 25, 2026).
Closing remotely
You do not have to fly in to close. Arizona authorizes remote online notarization, and the Secretary of State says an Arizona notary may notarize remotely for a signer located outside the state as long as the notary is physically in Arizona (Arizona Secretary of State, Remote and eNotary, accessed October 25, 2026). Whether your closing can be fully remote depends on the lender, the title company and the documents involved. Some files use a mail away package signed before a notary in your home state instead. Ask for the closing method early so you can plan wire timing and signatures.
| Step | What to line up | Who handles it |
|---|---|---|
| Entity | LLC documents, EIN, good standing, statutory agent if Arizona | You and your attorney |
| Financing | DSCR pre-approval, reserves, entity review | Pillar Mortgage Group |
| Due diligence | Inspection, rent estimate, HOA rules, insurance quote | You, your agent and inspector |
| Closing | Remote online notarization or mail away signing, wire verification | Lender and title company |
| After closing | County assessor rental registration and Arizona agent, property manager agreement | You or your manager |
Property management from a distance
Most out of state owners hire a local property manager. Arizona's real estate licensing law exempts owners who manage their own property, but managing property for others for compensation is regulated, so confirm your manager holds an Arizona real estate license (A.R.S. 32-2121, accessed October 25, 2026). Ask how the manager screens tenants, handles maintenance approvals, reports monthly and holds deposits.
Lenders do not usually require a manager on a long-term rental, but a strong lease and a realistic rent estimate support the DSCR calculation. For short-term rentals, the manager also handles city permits, guest screening and tax remittance. See DSCR loans for Airbnb and short-term rentals in Arizona.
Arizona landlord basics
Long-term residential rentals in Arizona are governed by the Arizona Residential Landlord and Tenant Act, A.R.S. Title 33, Chapter 10, starting at section 33-1301. A few rules out of state owners should know before they buy:
| Rule | What the statute says | Statute |
|---|---|---|
| Security deposit limit | No more than one and one-half month's rent in security or prepaid rent, unless the tenant voluntarily prepays | A.R.S. 33-1321 |
| Deposit return | Itemized deductions and any refund within 14 days, excluding weekends and legal holidays, after the tenancy ends and the tenant requests it | A.R.S. 33-1321 |
| Entry notice | At least two days' notice before entering, except in emergencies or where impracticable | A.R.S. 33-1343 |
| Nonpayment of rent | Landlord may terminate if rent is not paid within five days after written notice | A.R.S. 33-1368 |
| Other material noncompliance | Termination not less than 10 days after notice; 5 days for noncompliance affecting health and safety | A.R.S. 33-1368 |
Statutes accessed accessed October 25, 2026. This is a summary, not legal advice, and an Arizona landlord attorney or licensed property manager should review your lease.
Next steps
Browse properties on Arizona Luxury Property Search, then send target addresses and rent estimates to Blake Hermann, Director of Lending. We will run the ratio, confirm entity requirements with the lender, and map the closing. Once the property is seasoned, a DSCR cash out refinance can fund the next purchase. Full program details are on our DSCR loans page.
Frequently asked questions
Can I get a DSCR loan on Arizona property if I live in another state?
Yes. Pillar Mortgage Group finances DSCR loans for investors nationwide, qualifying on the Arizona property's rent with no tax returns or W-2s. Ratios down to 0.75 are accepted and you can close in an LLC.
Do I need an Arizona LLC to buy a rental in Arizona?
No single answer fits every investor. You can form an Arizona LLC or use an existing LLC, and lender requirements vary by program. An Arizona LLC needs a statutory agent with an Arizona street address. Ask your attorney and CPA which structure fits.
Can I close on an Arizona property remotely?
Often, yes. The Arizona Secretary of State says an Arizona notary may notarize remotely for a signer outside Arizona as long as the notary is physically in Arizona. Whether a closing can be fully remote depends on the lender and title company.
What does Arizona require of out of state rental owners?
A.R.S. 33-1902 requires residential rental owners to record their information with the county assessor, and owners who live outside Arizona must designate and record a statutory agent who lives in Arizona.
What is the maximum security deposit in Arizona?
Under A.R.S. 33-1321, a landlord may not demand or receive security or prepaid rent of more than one and one-half month's rent, unless the tenant voluntarily prepays rent.
Sources
- Pillar Mortgage Group, DSCR Loans program page, accessed October 25, 2026. https://pillarmortgagegroup.com/dscr-loans
- Arizona Revised Statutes 33-1301, Arizona Residential Landlord and Tenant Act short title, accessed October 25, 2026. https://www.azleg.gov/ars/33/01301.htm
- Arizona Revised Statutes 33-1321, Security deposits, accessed October 25, 2026. https://www.azleg.gov/ars/33/01321.htm
- Arizona Revised Statutes 33-1343, Access, accessed October 25, 2026. https://www.azleg.gov/ars/33/01343.htm
- Arizona Revised Statutes 33-1368, Noncompliance with rental agreement by tenant; failure to pay rent, accessed October 25, 2026. https://www.azleg.gov/ars/33/01368.htm
- Arizona Revised Statutes 33-1902, Residential rental property; recording with the assessor; agent designation, accessed October 25, 2026. https://www.azleg.gov/ars/33/01902.htm
- Arizona Revised Statutes 32-2121, Real estate licensing exemptions, accessed October 25, 2026. https://www.azleg.gov/ars/32/02121.htm
- Arizona Secretary of State, Remote and eNotary, accessed October 25, 2026. https://azsos.gov/business/notary-public/remote-enotary
- Arizona Corporation Commission, Instructions for Articles of Organization (L010i), accessed October 25, 2026. https://azcc.gov/docs/default-source/corps-files/instructions/l010i-instructions-articles-of-organization.pdf
Written by Blake Hermann, Director of Lending, NMLS #2271358, Pillar Mortgage Group, Scottsdale, Arizona.
Equal Housing Opportunity. Informational only, not a commitment to lend. Programs subject to change and borrower qualification. Company NMLS #2700076.
