All Forum Posts by: Jared Smith

All - thanks for the input. I ended up getting a carrier hvac system for 7817 with a 10 yr manufacturers warranty on parts. I could've gone with a lower end unit but I plan to hold this home for the long term. Also there are price increases coming this fall and I had tenants that needed this fixed asap as temps are +100. They brought a portable ac unit to cool the home until they installed it 5 days later. Now I won't have to worry about it and I have very happy tenants. Came with a free ecobee smart thermostat. I will keep this all in mind with other units as this is the first HVAC system that failed this badly on me.

@Mike Schorah Thank you! Yes I do but now only from my personal network. I have specific criteria that I will never color outside of the lines for. I recommend leveraging your network and when you find good contractors/vendors, pay them well and put systems in place for everything. Just like an airline pilot if something guys wrong, there has to be a procedure put in place for any type of situation so it's a streamlined process. Once you go long distance on REI, you can enter any market as long as you have the right Agent/PM/GC/Lender. Good Luck!

Welcome to Mesa, Arizona – Facebook!

The new Facebook Data Center will create 100 jobs, invest $800 million into the state, 450 megawatts of new, renewable energy projects, 200 million gallons of water a year will be restored and 60% less water usage than the average data center.

KORE Power will be the first lithium-ion battery manufacturing facility wholly owned by a US Company is coming to Buckeye, AZ.

Arizona is the #3 state in the nation for job recovery per AZ Office of Economic Opportunity.

Arizona is in the TOP 10 states for economic momentum per state policy reports, 2020. Arizona’s economy is diversified across high-tech industries, and with a simplified tax system, booming employment growth and surging population at an average of 238 people every day, the state is nationally recognized as one of the best places for business.

Taylor Morrison (a client of mine) has enough land to build for the next seven 7 years. They do limited releases for 6 lots per month for premium lots, then next month they increase prices on less desirable lots until they are sold out. The model home will be sold last with all of the staging furniture that you cannot buy retail, so it comes with a hefty price tag of 1.5x compared others in the same HOA Community.

It is still a seller's market at 1.1 months inventory for entry level housing which is characterized by under the average median price for SFH's at $445,000.

Do not let the last housing market crash scar you from investing now. All economic indicators are showing a bright future for Arizona Real Estate which is why I have focused all of my attention here compared to Ohio.

If you have any questions on AZ REI or any insight please leave a comment below!

Happy Friday – Jared

@Casey Mayton I max out my 401k and Roth IRA's - (due to RE Tax write-offs) every year and invest heavily in real estate. Once I built +$1 MILL in equity I pivoted to add stocks to collapse my time frames on down payments. My $0.02 is Real Estate will always #1 and then everything else.

@Grant Schroeder That is very interesting. I'll send you a PM, thanks for the info!

@Vaughn Bass Thanks for reaching out and feel free to send me a PM, looking forward to connecting!

@Brandon Sturgill @Bruce Woodruff 

4 young professionals renting a 2 bedroom apartment in LA for 4k/month. They moved to AZ and rent a 3 bed/3 bath SFH and save +1k/month, have 2x the space and increase their standard of living immediately with more disposable income. Everything is all relative compared to your reference point. AZ is growing and an amazing place for LL's/Tenants/Business and enjoy sunshine 365 days a year!

@Steven Foster Wilson For sure. There will always be great deals in local markets, you just need to know where to look and have the network. In Ohio, I only focus on Cleveland, specifically the west side. I see more opportunities in Arizona and for the long-term there will be much higher appreciation and lower taxes. Something that has worked really well for me is to rent to families relocating from another state. So many large PM Companies want at least a 1 year of AZ residency. I do a yearly lease but will offer a free lease cancellation if I represent them when they buy. It gives the Tenants much more flexibility and peace of mind. Also with the rent increases I stay competitive with the market. A LL-friend of mine has had the same tenant for 7 years in the East Valley and the rent is almost half of what mine are. I did him a favor and got him up to market rents and now he retired. The end :)

@Thomas Corley Thank you very much! Last year I wrote a forum post and there were a lot of naysayers on the AZ Market that stayed on the sidelines still scarred from the last boom and bust around 14 yrs ago. Last January 2020 the average median purchase price was $320,000 which is $125,000 increase. The same thing will be said again, but being in the building materials industry I know that there is so much more room to run. Taylor Morrison the biggest builder in AZ has enough land build for the next 6 years! Price increases and raw material shortages continue across the board. Even HVAC companies are doing extremely well with a 3.5 ton Carrier System that costs 2k more now that it did last year (check out their stock CARR) with another price increase this fall. So many good things happening and still incredibly more affordable that the west coast. I was looking at homes this week in Brentwood, CA and property taxes alone are over +60k/year. No thank you and that is also the reason why LA has the largest population decrease over the last year and will most likely continue.  

Also, as a agent I completely agree. For me, it's all about setting expectations and boundaries up front. Then it's all downhill from there!

@Grant Schroeder Thank you, I appreciate it! I wanted to bring it back to my roots on BP and share some thoughts/numbers in my market. Please let me know if you do 203k loans and when you expect HELOC's to come back. Looking to take on some PV fixer uppers.