All Forum Posts by: Wes Blackwell

@Cecile Poyet

Best way to see all the stuff I've written about Sacramento is to go my profile and view the conversations I've started. Here are some posts that may be of worth to anyone considering Sacramento:

https://www.biggerpockets.com/posts/user/WesBlackwell/started

https://www.biggerpockets.com/forums/621/topics/664159-sacramento-2019-state-of-the-city-address

https://www.biggerpockets.com/forums/621/topics/585796-sacramento-rent-control-101-everything-you-need-to-know

https://www.biggerpockets.com/forums/621/topics/586279-investing-in-sacramento-or-stockton-which-one-is-better

https://www.biggerpockets.com/forums/621/topics/590913-rent-growth-in-sacramento-is-triple-the-national-average

https://www.biggerpockets.com/forums/621/topics/416542-priced-out-is-rent-control-coming-to-sacramento

https://www.biggerpockets.com/forums/621/topics/428937-sacramento-not-on-list-of-best-markets-for-sfr-rentals---wtf

 Bahahahaaha good to see people are saving my old maps and still posting them ;-)

@Isa Rayyan

Anytime you are considering "trading up" a property, you need to consider all the available options before making a move. Since you've got seven months left on this property in the Phoenix / Scottsdale area, you've got plenty of time to explore what's possible.

Ultimately, the question is will the equity be better used or offer better returns in the property you currently have or in some other investment?

Best way to do that is to window-shop and do analysis on potential properties like you already had the money. If you can find multiple MFH deals where the returns are better, well there's your answer. 

@Tracie J.

Totally going to depend on exactly what you're looking at and what your goals are. Don't know much about Austin but here's what I can say for Phoenix:

Arizona had the fourth highest percentage of job creation in the country last year, just behind Nevada, Utah and Idaho. Jobs = Demand = Appreciation & Steadier Markets

Arizona was also the fourth fastest state for population growth last year. Big part of that reason is California is a crazy state that's exporting their middle class like crazy for affordable housing, and we're the #2 retirement destination in the US second only to Florida. 

And no offense, but what will the boomers bring? More jobs in healthcare. Phoenix already has a physician shortage due to the high demand, and millennial nurses are just now having kids and buying their first homes. 

There's all sort of other factors too (if you have family in each state or another reason to visit, landlord laws, etc.) but primarily I would focus on the economies of the two states and projections for the future over the next 5-10 years. 

@Matthew Lessard

What makes you want to invest in the Prescott area? Why not Phoenix?

The reason I ask is that with Phoenix being a MUCH larger metro area, you'll have a much higher demand for rent, easier resale, more properties to choose from, etc.

When investing in "small towns" sometimes you can get a little better return on the purchase, but depending on the local job market, demand for housing, etc. it can greatly impact your strategy. 

Not saying Prescott won't work... it totally can. But with the large population growth from California transplants and being the #2 retirement destination in the US, Phoenix seems like a better long term investment if you ask me. 

@Tony Thomas

Welcome to BP Tony! If you've got any questions about the Sacramento area feel free to reach out. Pretty good little community we've got here :-)

Whenever I talk to someone who's contemplating whether to buy their first home, here is the question I ask them:

"Assuming your monthly payment is $1,500/mo whether you rent or buy, and the end of the next five years would you have rather paid down $90,000 on your own mortgage or someone else's?"

If you're going to be staying in the Phoenix area for the foreseeable future (next 4-5 years at least) it's probably a good idea. But if you're unsure, looking for a promotion to the opposite side of town, or thinking of getting a divorce, you should probably wait.

You can always rent the property out if you need to move, or sell it. So don't think it means you're locked in forever or anything.

Probably the best thing to do is discuss all the options regarding your personal situation with a local agent who can help you explore the options here in Phoenix. We do this sort of stuff ALLLLL the time, so don't worry thinking you might be wasting our time if you don't decide to buy. We're more than happy to help.

If you do a little exploration and want to consider it further, next step is to talk to a lender and get the financial part of things looked at (how much of a loan you qualify for, down payment requirements, etc.). And even then you're not required to move forward.

Just take it one step at a time, explore what's possible, and work with someone to get your questions answered. Before too long you'll know whether it's the right decision for you.

Best of luck! And if there's anything we can do to help feel free to ask we'll get you pointed in the right direction!

@Clifford Janke

The first issue that needs to be determined regarding lot splits and subdividing is the location of property. If the property is in a municipality, A.R.S. § 9-463.01, et seq. is applicable and the municipality regulates. See A.R.S. § 9-463.01(A) ("Pursuant to this article, the legislative body of every municipality shall regulate the subdivision of all lands within its corporate limits."). 

On the other hand, if the property is located within an unincorporated portion of a county, the county board regulates. See A.R.S. § 11-806.01(A) ("The county board of supervisors shall regulate the subdivision of all lands within its corporate limits, except subdivisions which are regulated by municipalities.")

Ultimately, you're going to need to talk to someone at the Pima County Development Services. They will have far more accurate and helpful information than most of the people here:

http://webcms.pima.gov/government/development_services/land_planning_and_regulation/

Hope this helps. Best of luck!

@Travis Holmberg

My advice would be to give this strategy a shot in Phoenix would be to do it on a property you already own where it's practically guaranteed you're going to make money (already high cashflow, etc.). Reduce your risk with the numbers as much as you can because that's what is most important.

Then once it's a proven concept, you could add it to your bag of tricks for a BRRR strategy on subsequent properties.

If the math works, then probably your only main concern is the wording in the contract regarding the payment of the electricity bills. You're going to want make sure the expectation are crystal clear and easily understood by the tenant. 

If you use a standard lease agreement, you don't want a rogue tenant claiming they don't owe anything for the electricity bill since the solar panels covered it. Even if you'd win in court, you don't want them calling the city and complaining about you either.

@Julie Coleman

Send me a message... I've sent this one Sacramento contractor so much business he oughta be buying my kids Christmas presents lol.