Hi Brady and welcome to permies!
I'm in Phoenix as well (Central Historic District) and Phoenix can be challenging for a
permie!
Grass - I'm going to assume you have Bermuda grass? Bermuda is HARD to get rid of - I've lived and my house since 1998 and still battle spots of it. Note it is NOT dead when it goes dormant for the winter. Depriving it of water just makes the
roots go deeper to search out water. The best thing you can do is start digging out areas and sifting out as many roots/stolons/rhizomes as you can. Learn to love it as this will be your hobby for the foreseeable future. And that's ok.
What human needs are you hoping to meet?
--food
--firewood
--building materials (even if it's for naturalistic outdoor projects)
--medicine
--passive heat and cooling
--wildlife corridor
--nectary for
native pollinators
How "sustainable" do you want to be? I ask this because a lot of people grow food in the desert but they do so by using a LOT of water (a scarce and precious resource). There are also some dryland-specific methods you should be aware of, like growing in sunken beds instead of raised beds, capturing and reusing as many water resources on site as possible (rainwater, grey water, dark grey water, stormwater). And then there's our wonky seasons and what to plant when. Usually summer is our "down" time (limited things grow in our extreme heat).
You can check out a
thread I started on the Valley
Permaculture Alliance's website about understanding our climate and how to create more
sustainable permaculture sites based on our limitations here:
http://www.phoenixpermaculture.org/forum/topics/upping-our-game-and-creating-a-more-sustainable-phoenix-metro