All Forum Posts by: Randy K.

Not sure how SRP does things with their solar, but I know APS doesn't really pay you out for your excess kWh, they simply credit your overage toward your bill each January. Throughout the year, you're either buying the kWh they provide (nights, cloudy days), you utilize what the sun gives you, or a mixture of both. If you're generating more than you're using, it just gets added to a "bank" of kWh that appears on your statement. If you're net positive for a month (or all of them), you still pay the minimum charge of around $14 per month to be connected to the grid and have them read your meter, taxes, fees, etc. At the end of the year, whatever you've got banked up gets applied to the future bills at a certain rate. As previously stated, that rate is far lower than what they charge for a kWh.

One thing to note, I had my system installed in 2012, so the rates and rebates may be vastly different than what's offered these days. Also, as far as I know, they'll only approve a system that is able to capture/generate up to 125% of the property's average usage. So don't count on loading the roof with as many panels as possible to create a mini-solar-farm.

All-in-all, I'm a big advocate of going solar, especially here in AZ, however, I'm not certain it'll yield the results you're hoping for when used on rental properties. If you advertised the home touting its energy efficiency and low monthly electric bills, perhaps you could charge a higher monthly rent to recoup some of the investment, but that's a big "perhaps".

I've seen units within that complex pop up now and then, and they always caught my interest due to the lower price point. Back in '04 and '05 I used to live not too far from there, near Shea and 32nd St, so I'm fairly familiar with the general area. Having visited recently, the neighborhoods south of there seem to have gotten a bit of new construction in recent years. New apartments (View 32), retail (Walgreens, 32 Shea, BoSa, etc.), and schools (Basis Phoenix Primary), along 32nd St, north of Shea, south of Cactus.

Something to note, as both yourself and @Ryan Swan have mentioned, the units you're looking at aren't in a war-zone. However, that area is relatively well known to those living in or around North Phoenix. I've mainly heard it referred to as "The Square", though it seems "Palamino" is the more official name of the neighborhood. Keep in mind, many of these posts are several years old, and things may have changed for the better, but the following may make for some food for thought...

http://www.city-data.com/forum/phoenix-area/516485-whats-deal-palomino-greenway-square.html

http://wikimapia.org/684580/The-Square

https://www.apartmentratings.com/az/phoenix/palomino-pointe_602971199885032/

Also, there are currently 81 Google Reviews for Palomino Pointe Apartments (the complex your potential building resides in), they can be rather insightful as well.

Not trying to scare you away from the place, but be advised that managing such a property may be more challenging than most.

Naturally, if she's selling the property, any potential floods won't be her issue, however... As @Ryan Swan mentioned, flooding is a legitimate problem out here. And it's likely far more often than you may imagine. My vote would be to opt for flood insurance, even if independently obtained since the HOA doesn't seem interested. Better safe than sorry.

Did the bank specifically state the HOA needed to be the one with the policy? Or would the buyer getting a policy of their own meet the lender's requirements?

I'm sure your comment about Scottsdale's rain was tongue-in-cheek, but for reference, here are some fairly recent examples (two from this year!):

September 2014:

August 2018:

October 2018:

Did the technicians give you any other details aside from "an electrical panel broke down"? Of course there are plenty of variables, but that seems a bit off... Connections corroded? Sure. Wiring or circuit breaker not rated to handle the load of the HVAC unit? Perhaps. But for a panel to "break down" seems like an odd choice of words.

Now, I'm no electrician or HVAC tech, but personally I'd get the panel issue sorted out as top priority. Then, if the HVAC is still acting up, take whichever method you prefer to repair/replace the unit. Dip into your CapEx fund, or preserve cash flow by going the financed route. If you're lucky, it may just need a capacitor or fan motor replacement (sub-$1,000 repair, potentially far less).

To put things into a rough analogy (I'm not in the medical field either, so apologies if this is nonsensical from your viewpoint): Before getting a heart transplant, I'd at least make an effort to unclog the arteries beforehand. If the heart is still overworked pumping through clean blood vessels, then perhaps more drastic measures need to be taken. Going through the expense and pain of getting a transplant, only to connect the fresh heart to plaque-coated arteries just doesn't make much sense to me.

Again, I'm no professional when it comes to these things, but maybe someone with some certified electrical/HVAC experience will chime in.

Two methods that I'm aware of...

First, there's an "Events and Happenings" section, where you can simply punch in a ZIP code, a mileage radius, and it'll show you nearby meetups and whatnot, as well as the date/time. Here's the link: https://www.biggerpockets.com/forums/521-events-an...

Second, keep an eye out for posts on the local sub-forums, here's the link to Arizona's: https://www.biggerpockets.com/forums/546-arizona-r... Note that within the main AZ forum, you can also narrow things down further to individual cities. Just click "Show 10 sub-forums" above where the posts are displayed, and you'll get options for Chandler, Gilbert, Tempe, etc.

Hope that helps!

As @Jim Pellerin had in his list, private lending and notes. They're sometimes overlooked, but definitely still qualify as REI. Purchasing tax liens is another option many may not be familiar with.

Both rentals and lease options seem to be solid down here, and there are still quite a few homes in Casa Grande that could use rehabbing. In addition to CG, Coolidge and Florence tend to have better Price:Rent ratios than most of the metro Phoenix area. As @Dustin P. mentioned, AJ and San Tan Valley are popular as well.

Perhaps @Shiloh Lundahl could lend some advice, he's completed quite a few deals that utilized OPM in rather creative ways.

Congrats on the purchase! Your uncle may be right about the 27 acres for $3k in AZ claim, but numbers like that are typically seen way out in the desert, miles from the nearest town (Holbrook, Kingman, St. Johns, Willcox, etc.), and odds are good you'll need a 4x4 vehicle to access the parcel. For him to say, "Land is cheap in Arizona.", is, for the most part, only applicable to the extremely rural portions of the state. That said, Surprise isn't a bustling metropolis or anything, but you're definitely not getting land there for $111 per acre.

Surprise is a relatively well-known city in the NW portion of the Phoenix area. With your uncle being in Tempe (another city in the same MSA), I would've thought he'd be familiar with it. Unless perhaps he just recently moved to Tempe? Whatever the case, personally I'd follow through with the deal, considering the price point you're at. Raw land typically does sit on the market for quite awhile down here, but if you're comfortable with the risks and have patience, keep on keeping on.

As far as I've seen, many of the major plans that have been rumored throughout Casa Grande over the years don't always quite work out as expected. PhoenixMart was supposed to be up and running years ago, but from what I'd heard, the investors overseas ran into delays due to immigration. Though I don't often make it out to where PhoenixMart is being built (https://www.google.com/maps/place/32°52'47.2"N+111...), I do know that they've been working on the structure for over a year now. Your mention of the concrete company's lien is the first I've heard of it, though it wouldn't surprise me.

Aside from PhoenixMart, there are several other large developments that are supposed to be popping up soon: Attesa Motorsports Complex (debatable whether it'd be considered as being in Casa Grande or Stanfield), Lucid Motors (SW corner of Casa Grande), and Dreamport Villages (to my knowledge, near the I-8 and I-10 interchange). Several years ago it was rumored that a Six Flags would be built somewhere near Eloy, then the idea seemed to vanish in the wind, same for the massive Pacific Union railway switchyard that was planned for the Picacho/Red Rock area. Whether any of these new facilities will make it to completion and create long-term employment opportunities is hard to say.

It's also not uncommon to see new businesses built from the ground up, then within a few years they scale back drastically or shut down completely. Not only can empty retail properties be found throughout CG, but vacant industrial and manufacturing facilities as well, particularly on the southwest side of town.

All-in-all, I would say that Casa Grande does have potential for cashflow, but in my experience of living here since '07, I wouldn't personally buy with the idea of appreciation in mind. From what I've seen, the BRRRR strategy tends to work well (feel free to ask @Shiloh Lundahl about his experiences with Pinal County properties) , as there's still a fair amount of distressed SFH's and small multi's in this town. Same can be said for Arizona City, Eloy, Coolidge, Florence, etc.