patrick.net

How is AZ / Phoenix for landlord rights?

Is it one of those places where a loser can stay in your rental rent free for over a yr before you can evict, like in CA?

just_passing_through says

Dr Horton, I havent been impressed by their model homes.

Agreed, Horton isn't the best

yeah, its on the same level as KB Homes and other crap. Buying from a quality builder is important.

In terms of ROI. I have enough in crypto and stocks and want to invest long term. RE in booming markets like Phoenix dont seem like a bad idea. Will see. I'll made a shit ton in crypto....e.g. buying ADA at 10cents which is now trading over $1.2 :)

Booger says

Bitcoin says

Have you ever bought a new construction in your life?

Nope.

I figured :) Usually you get one of those posters that hasnt had the experience but wants to chime in.
One day you will be in the position to buy a brand new house....its nice....and if something breaks or you find cosmetic issues you just call the builder :)

zzyzzx says

10 Reasons Why You Should NEVER Move to Phoenix, Arizona
https://www.youtube.com/watch?v=M0oYeSDnjys&source=patrick.net

ROFL
His first reason is cost of living. bawaha
First of all, HOA & Taxes are less than half compared to SoCal. Home insurance and utilities in AZ are less expensive as well.
Then he talks about higher rents....fantastic....music to my ears as an investor.

His next reason is traffic. bawahaha
You can hardly call this traffic.....compared to LA or other areas in CA, the "traffic" in Phoenix is a joke.
Its super easy to get around in Phoenix even during rush hour and those loops really help.

His next reason is the weather and the lack of seasons. yeah it gets hot....but to say they will run out of water....give me a break. And maybe not everyone wants to shuffle snow during winter?!

Dont waste your time with this video.

just_passing_through says

Bitcoin says

In terms of ROI. I have enough in crypto and stocks and want to invest long term.

But this isn't crypto and stocks. Just be careful and be sure to stash some rent money off to the side to pay for things when they come up and you'll be fine. SFH rental properties are definitely not get rich quick schemes but can be a big help to diversify and offer some protection during high inflation.

I did the same thing you did after making piles of cash in markets. It's a good idea. I'm more confident with riskier investments because I know I won't, 'lose it all', now and housing being so illiquid I can't get drunk some night and fuck it all up in a dumb trade.

You've made a good choice if you plan to hold it for a long time.

FJB says

SFH rental properties are definitely not get rich quick schemes but can be a big help to diversify and offer some protection during high inflation.

I did the same thing you did after making piles of cash in markets. It's a good idea. I'm more confident with riskier investments because I know I won't, 'lose it all', now and housing being so illiquid I can't get drunk some night and fuck it all up in a dumb trade.

Thanks man, you nailed it here.....I dont care if I buy the top in RE. For me its about diversifying into an inflation hedge with a long term strategy (25+ years).
People who bought RE in 2005 and held until now are doing well. Surely, there were people back then who made fun of them from the sidelines for buying the top. Time in the market beats timing the market.

New House Construction Problems That Buyers Should Be Aware Of

https://www.youtube.com/watch?v=J6uERM1S1jE&source=patrick.net

zzyzzx says

New House Construction Problems That Buyers Should Be Aware Of

https://www.youtube.com/watch?v=J6uERM1S1jE&source=patrick.net

The guys says 7:35: "I wish they would stop increasing the price so much, they need to chill."

Great advice and video! What an expert!

Go back to your moms basement and watch more youtube. In the meantime millennials with money (me) will buy new homes and rent them out :)

My rental has appreciated by ~50k by now and is about to be completed (builder's closing date is in May) which is about a 10% appreciation in 4-5month.

I'm building.... more out of need than want. Three pre-teen boys that will all be 6' plus ain't gonna work in our current house long term. Locked up 2 lots, friend bought the neighboring lot and won't build. So we essentially will have 1 to 1-1/2 acres as we're close friends. City sewer and water. Might buy another lot with another friend and essentially take the entire block.

Interesting new chapter in life. I'm tempted to get back into real estate, without the license this time. No handcuffs. I can't and won't work 40 hours per week. Ever. Looking at picking up a few investment properties in town where I'm at. I hate dealing with people (landlord) but it might be worth it. IL property taxes freak me the fuck out is the only issue. I'm guessing $12k/yr for the new build. Not a McMansion, but 2,200 SF ranch with full finished basement. Separate 2 car garage (4 total) with office/granny space if needed. Costs should be $400-500k. I'm going to do a lot of the work and have the ability to actively be there daily.

My next year or so is fucked. So if I go MIA here I'm either working on it or dead.

WookieMan says

Looking at picking up a few investment properties in town where I'm at

Congrats on the lot and building plans!
I am also looking to pick up more rentals, however, rates have gone through the roof and prices are still climbing.....i am going to be patient, wait for a cool down and maybe even a YoY stagnation of prices. Cant see a signficant reduction in prices with inventory that low.

With 2024 being an election year I bet on much lower interest rates by then. So 2023 might be the time to buy another rental for me and then refi later.

WookieMan says

I'm going to do a lot of the work and have the ability to actively be there daily.

I am sure that if you do not mind, pics of the progress would be appreciated on this blog. Also stuff like poured or block, HVAC style, tank or tankless, recirculating, and so on.

Bitcoin says

With 2024 being an election year I bet on much lower interest rates by then. So 2023 might be the time to buy another rental for me and then refi later.

Yeah, I have no concern about interest rates honestly. I go by the 3x's income rule. Appraisal is the biggest issue with construction financing. We could easily spend $1M. There are not million dollar houses here unless you have acreage, so we're keeping it chill, but upgrading the fuck out of everything. In town we will have the nicest house. Building next to neighbors who won't build on their lot. So we'll legit have close to 1-2 acres and we're both cool sharing the land for kids, our pool and other shit. Might pick up the corner lot with another friend. Between us all we might end up with 700-800' of frontage in a subdivision.

Not looking forward to the process. We'll be upside down out the gate. We love our town and need more space so fuck it. Not the most responsible decision, but we'll be here for 10 years minimum and can afford $600-700k no issue. Concerned it will handcuff our retirement property plan, but we'll figure it out. We have time. If inflation continues to explode it might be the right decision for a primary home. The loans now are all pretty solid.

https://www.bizjournals.com/phoenix/news/2022/09/11/arizona-home-lot-sizes.html

Arizona has some of the smallest average home lot sizes in the country

I would have guessed Florida.

zzyzzx says

https://www.bizjournals.com/phoenix/news/2022/09/11/arizona-home-lot-sizes.html

Arizona has some of the smallest average home lot sizes in the country

I would have guessed Florida.

AZ is bad. Just got back from Montana last night, those tract subdivisions are just as bad there. Tiny fucking parcels. I guess easier to mow or in the case of AZ less dirt to put on it and buy overpriced vegetation.

What blows my mind is there's land as far as the eye can see (besides the damn coastal fires burning and smoking the place out) yet a simple 3/2.1 is $400k. In Montana... My buddy spent $350k on his house. It's absolutely builder grade shit. First time out in I think 2-3 years. I'd run from Bozeman/Belgrade area. If you're looking for an overpriced small market that is it.

Also, Denver can eat shit. That airport has gone to hell and quickly. I used to like it. They expanded too much since it's a pre-Rockies central hub. They added like 20 gates and no restaurants in terminal C. Talking 30-40min waits at an airport to get in for bad food that you'll miss your connecting flight for.

Sorry, bitching. 3 hour drive from Missoula to Belgrade, flight to Denver and then Shitcago and I'm a bit burned out.. 6am to 12am. Non-covid it was the first time I didn't have a beer on a flight ever of age. 2 concerts and 4k' elevation change can burn you out.

Bitcoin says

First of all, HOA & Taxes are less than half compared to SoCal. Home insurance and utilities in AZ are less expensive as well.
Then he talks abo

are they fixed? in idaho they aren’t fixed, doibled this year because of many people moving in.

the one good thing anout socal was fixed property taxes if you bought low.

zzyzzx says

https://www.bizjournals.com/phoenix/news/2022/09/11/arizona-home-lot-sizes.html

Arizona has some of the smallest average home lot sizes in the country

I would have guessed Florida.

when we visited Florida (not with Elena), we liked it. it was nice there, humid but nice. houses were nice size

FortwayeAsFuckJoeBiden says

when we visited Florida (not with Elena), we liked it. it was nice there, humid but nice. houses were nice size

Housing is weird. I have no interest in a large house. I'd like acreage, but I'm cool with a small house. I don't want to be on top of neighbors. 6-8' setback lines can eat shit. If I can pee on my neighbors house from the window, that's too close. Which is all of AZ in most cases besides the wealthy areas. And the more ghetto areas all have those cinder block walls between yards.

WookieMan says

If I can pee on my neighbors house from the window, that's too close.

Even cooler if you can land the stream in his toilet through his open window.

WookieMan says

FortwayeAsFuckJoeBiden says

when we visited Florida (not with Elena), we liked it. it was nice there, humid but nice. houses were nice size

Housing is weird. I have no interest in a large house. I'd like acreage, but I'm cool with a small house. I don't want to be on top of neighbors. 6-8' setback lines can eat shit. If I can pee on my neighbors house from the window, that's too close. Which is all of AZ in most cases besides the wealthy areas. And the more ghetto areas all have those cinder block walls between yards.

tennessee… cheap acerage

FortwayeAsFuckJoeBiden says

when we visited Florida (not with Elena), we liked it. it was nice there, humid but nice. houses were nice size

No attic, no basement, and a tiny lot. I get self storage places do well in Florida.