All Forum Posts by: Wes Blackwell

@Derrick U.

You're new to real estate investing, so here's a little advice to help you avoid some mistakes I've seen others make in the past.

A. Let me know if a rental deal is good or not

Do NOT outsource your thinking. You have to understand that agents are salespeople, and only get paid when you buy something. Which leads to a natural motive to sell you something. 

Plus, most agents don't understand how to analyze investment property, and if they only do it 10% better than you then it's only a matter of time before you trust their opinion and make a major mistake.

Your agent should help you see things you can't see... not piece together the entire puzzle. With my best clients, they have an understanding of the basics, but then I ask them "Well have you thought about this?" and they go "Ohhhhh I never thought of that... that changes things a bit." 

That's the best partnership I can hope for, and you too. Don't outsource your thinking.

B. Help me get the best loan

It's okay to shop around for a bit, but you'll also have to find a good professional who can help walk you through the options and the transaction. It's a mix of service and product when it comes to choosing a lender. Explore your options, but don't pass up the A+ loan officer for the crappy one for 1/8% of a lower rate. You'll regret it.

C. Identify and fix and structural,mechanical, electrical etc issues on the rental

This will be determined when you do an inspection on a property you get a contract for during the inspection period. Usually your agent or loan officer will have a really good contact for this. 

As far as estimates for repair, you'll need a contractor for that, and can easily find resources for that from your agent and lender too. Don't worry about that yet though... that's way down the line.

D. Manage the property 100%. Collect the rent, deposit the checks,answer the tenant concerns and complaints and other issues.

I highly suggest you consider self-managing your first property. How will you know if the property manager is doing a good job if you don't know what they're supposed to be doing?

Just last year I had the top-rated property manager in town come look at property of mine in Sacramento while I was out in Phoenix. I wanted to see what he thought it could rent for since we don't record leases/rentals on the MLS.

It blew my mind when he quoted $1,900... because we ended up renting it ourselves for $2,350. He was WAY off the market rent and his contract/service sucked too. I deal heavily with investment properties so I knew the market better than he did, and he's the property manager!

Outsourcing my thinking would've cost me $450/mo if I had gone with him. And the same can happen to you too.

For now I suggest listening to the podcasts, reading the forums, and getting educated on the market. Team up with a local lender and real estate agent as those will be the cornerstones of your operation. 

Later on you can add the rest of the pieces. There's lots of opportunity out here in Phoenix, but lots of pros out here too. So study to become one and you'll get that $2M property in no time :-)

@Austin Mudd

You don't need software for this, as much of the research and information can be found online. Google is your best friend here. 

For crime, look at the city's police department website and they'll tell you where they report crime statistics to. You can search there and look at a map to help you avoid any areas with too much violent crime. 

Household incomes and other statistical data like this is super easy to find online. Just google and boom you'll have it in less than a minute.

As far as local trends, neighborhoods, etc. that's what the forums are for. Simply hop on after doing some of your own research and ask "What are the hottest neighborhoods in Phoenix right now?" or "What kind of strategy is working best in Austin TX for you fellow investors" and so on. 

The opinions and stories of the agents out here on the street working in the market every day will help you get the quickest grasp on that.

When you like what you hear and think you've chosen a potential market, make the visit in person. Nothing like seeing it for yourself. Plan meet ups with local agents, REIA groups and fellow investors. Best experience money can buy.

That's the best plan for educating yourself. It takes time, but it's worth it.

@Bryan Schiessl

Welcome to BiggerPockets! You're in the right place to start your search!

The strategy you're going to be using of purchasing a residential multifamily property and living in one of the units is called "House Hacking." It has it's own special considerations that most other investment strategies don't.

Mainly, you're going to be living in the property, so not only does it have to meet your investor / ROI criteria, but it has to meet your personal living criteria (condition of property, neighborhood quality, school district, etc.) As well as the criteria of your spouse or significant other if you have one.

The Phoenix Metro Area is HUGE. It's real big, especially if you're just getting started with real estate. There's a lot to learn, not only on a city-by-city basis but also neighborhood-by-neighborhood.

Luckily, you won't have to learn the whole area because the 2-4 multifamily market is mostly in central Phoenix, Glendale, Mesa and Chandler. Everything else is mostly single family. Take a look at the map of available 2-4 unit properties below:

So where you work, where your family lives, familiarity with these areas, etc. will be an important factor in your decision beyond the numbers.

First, I recommend speaking with a lender to determine your timeline for purchase and pre-approval amount so you'll know what the financing looks like and what kind of downpayment you'll need. 

Then, make a list of what's important to you in the property and in the area you're buying and consider all factors. Rents, condition, neighborhoods... you name it.

Then you can start looking around online and driving by properties, and eventually get really serious about your search and team up with an agent who can help you get more info, access to properties, and negotiate the contract.

I know... lots to take in, but just do it one day at a time. If you ever get stuck or have a question, just reach out to the community here on BiggerPockets and we'll try to help you get pointed in the right direction :-) Best of luck!

@Kylee Johnson

Welcome to BiggerPockets! You're in the right place! Sacramento has a great community presence on here.

For local connections, @David Oldenburg runs an amazing group out of the Roseville area, I highly suggest you attend and check it out. You should find all the connections you need :-)

@Kelsy White

Welcome to BiggerPockets! You're in the right place!

As for your strategy, you may have to make a little bit of a commute to find a 2-4 property, as Scottsdale is more of a resort-style living town full of Single Family Homes. 

Here's a map of the recent 2-4 unit sales in the past 6 months. Phoenix, Mesa, Chandler and Glendale have most of the multifamily around here.

For now, you just need to familiarize yourself with the market and learn the the lay of the land. Phoenix is BIG, and there's a lot of ground to cover. Study on here, join in the conversation, and explore your local market. Best of luck and welcome to Phoenix!

@Gerald Donaire

Sure thing man. Happy to help. Lived in Stockton for over 10 years so know the area well. Feel free to reach out if you have more questions or need help with the transaction.

@Brad D.

I don't work down in Tucson, so perhaps a local there can give you a better picture. But as @Darwin Crawford said there are FAR more options for investing in the Phoenix Metro Area and way more demand.

If want something a little more rural but closer the metro, try Casa Grande. Place is projected to explode over the next 10-20 years, and is just on the outskirts of Phoenix Metro. Might be the best of both worlds.

@Ron Hollingsworth

Try looking in a higher price range. iBuyers generally don’t like anything above $300-400k. So you could try higher-end flips. Also, there are PLENTY of wholesalers finding deals out here in Phoenix. So as always, it comes to putting feet on the street. If you don’t have the time, network with wholesalers who do. Plenty of opportunity here despite the iBuyers.

@R.J. Napolitano

Here's everything you need to know about STR in Phoenix/Scottsdale:

https://www.biggerpockets.com/forums/546/topics/715624-the-future-of-phoenix-short-term-rentals-airbnb

@Brad D.

Do it. Buckeye AZ is growing like crazy. 

Yeah, it's further away from the Phoenix Metro... but also an hour closer to California. People from CA stop in ALLLL the time at my open houses in Buckeye. First major city on the way into the metro.

Plus, Bill Gates is planning to build his "smart city" out near Tonopah off I-10. Better believe that will bring in a bunch of high paying jobs and the distance from the metro will no longer be an objection.

Best of all, you can buy brand new construction for $250k or less. DEAL. SoCal folks lose their minds when they find that out. Why the hell pay 2-3x as much just to have way more traffic and view the ocean occasionally?