Casino impact on property value - Elk Grove, CA

[Justin F.]

Hi All,

First time investor. I was looking at a new build SFR in southwestern Elk Grove, CA (near highway 5) as an investment property. Not expecting cash flow given California market so betting on appreciation. Turns out there are a plans to build a $400 million casino/resort about 5 miles away near Kammerer Rd and 99.

According to the Elk Grove development website, there's a bunch of other residential communities being planned in the same area and a shopping center.

What are people's thoughts on potential impact to property values given proximity of new casino?  

There seems to be more articles on negative impact than positive impact.

I was trying to look at property values near River Rock Casino and Cache Creek but those are pretty rural locations so not many homes to compare whereas the casino in Elk Grove would be surrounded by a bunch of SFRs.

Should I scratch Elk Grove off the list?  Was looking a cities with decent school districts in Sacramento area.  I know Roseville and Rocklin fall in that category so maybe I should look at those cities instead.

Currently living in Bay Area so wanted to be near first investment property (would consider multi-families in the future after getting some experience as a landlord).  Prefer to stay in CA since I have my RE license here.

Thanks in advance!

P.S. Seems like all these new developments have HOA and mello roos. Any developments <$400K in Sacramento that don't have mello roos? Do new homes in established neighborhoods still have mello roos? My understanding is that tax is to help pay for development of new infrastructure (i.e. schools, parks, etc...) but if new home is old neighborhood, is that still the case?