The pilot to my real estate career!
New to Real Estate · Salt Lake City · Member since 2022 · 5 posts · 1 vote
The pilot to my real estate career!
Most Popular Reply
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3yQuote from @Antonio Cardenas:
Hey I'm 21 years old and looking to flip houses as a job and acquire multifamily households to build passive income ! Im located in Salt Lake City, are there any locals on here that I can communicate with and ask questions? Looking for knowledge and wisdom! Building partnership !
Welcome to the BiggerPockets forums!
Markets around the country peaked a few months ago and are starting to fall. Many experts predict prices to drop 20% from their 2022 peak, which means they could continue to fall throughout 2023. Salt Lake City is one of those markets with the greatest increases and predicting the greatest decreases.
You could buy a house today with a predicted sales price of $600,000 but then the market drops 10% and your house will only sell for $540,000. And what if material costs go up 10%? What if the work takes three months longer than predicted?
The sales market is falling, material costs are up, and you have no experience. Yes, you can still make money flipping but you need to be conservative with your numbers and be prepared to switch gears to another plan if something falls through.
The DIY Landlord Book4.7248 Reviews
12 Replies
- Realtor · Provo, UT · Member since 2020 · 374 posts · 270 votes3y
Hey man, happy to be a resource. You can find my contact info on my profile
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Quote from @Antonio Cardenas:
Hey I'm 21 years old and looking to flip houses as a job and acquire multifamily households to build passive income ! Im located in Salt Lake City, are there any locals on here that I can communicate with and ask questions? Looking for knowledge and wisdom! Building partnership !
Welcome to the BiggerPockets forums!
Markets around the country peaked a few months ago and are starting to fall. Many experts predict prices to drop 20% from their 2022 peak, which means they could continue to fall throughout 2023. Salt Lake City is one of those markets with the greatest increases and predicting the greatest decreases.
You could buy a house today with a predicted sales price of $600,000 but then the market drops 10% and your house will only sell for $540,000. And what if material costs go up 10%? What if the work takes three months longer than predicted?
The sales market is falling, material costs are up, and you have no experience. Yes, you can still make money flipping but you need to be conservative with your numbers and be prepared to switch gears to another plan if something falls through.
The DIY Landlord Book4.7248 Reviews - New to Real Estate · Salt Lake City · Member since 2022 · 5 posts · 1 vote3y
Hey @Nathan Gesner thanks for the structured response! It is a lot to take in especially with no real estate experience, in a market like that what kind of approach would you take? Is there any possible opportunity there ? When you say be prepared to switch gears do you mean to be prepared to receive lower the amount of profit projected ?
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Quote from @Antonio Cardenas:
Hey @Nathan Gesner thanks for the structured response! It is a lot to take in especially with no real estate experience, in a market like that what kind of approach would you take? Is there any possible opportunity there ? When you say be prepared to switch gears do you mean to be prepared to receive lower the amount of profit projected ?
Switching gears means you may have to change your strategy to a long-term or short-term rental until the market recovers, then you can sell for profit.
If it were me, I wouldn't start with flips in a market that's dropping. Too many unknowns. You can still make money with flips but you need to be really conservative with your numbers in case the prices drop too low or the market turns stagnant and nothing sells.
The DIY Landlord Book4.7248 Reviews - Real Estate Agent · Member since 2022 · 12 posts · 6 votes3y
Hello Antonio! Welcome to Bigger Pockets Salt Lake City forum!
Starting out in real estate is so exciting! SO MANY possibilities, SO MANY pathways to explore, and SO MUCH opportunity to build wealth. I am sure you have so many questions. If you are in the local area, I would love to talk further about your goals and plans in SLC over coffee or lunch. I also can schedule a Zoom call if that works better for you!
- Real Estate Agent · Salt Lake City, UT · Member since 2020 · 490 posts · 205 votes3y
Antonio! Would love to connect with you as well.
- Realtor · Salt Lake City, UT · Member since 2022 · 12 posts · 7 votes3y
Quote from @Antonio Cardenas:
Hey I'm 21 years old and looking to flip houses as a job and acquire multifamily households to build passive income ! Im located in Salt Lake City, are there any locals on here that I can communicate with and ask questions? Looking for knowledge and wisdom! Building partnership !
Hey Antonio! SLC local here. Wise decision to explore wealth building via real estate. With SLC's continually rising rental rates, paired with our strong economy attracting people for employment opportunities, multifamily rentals are a genius way to gain passive income. We have also seen an increase in multigenerational housing - parents living with kids and vice versa to combat high housing costs and to save once they are ready to purchase.
Inventory for multifamily is on the lower side, especially in SL county. Is there a particular area you're wanting to start investing in, or perhaps another county? Multifamily properties near our universities or city centers is never a bad choice. Or if you're starting out, maybe even buying your first home, buying a duplex and living in one side while renting out the other would be genius. Working with your Mortgage Lender, you can often count that rental income towards your DTI (debt to income) up to 75%. This will factor into your borrowing power, as long as you have an executed lease before closing.
Any questions at all, I'll be here! Don't hesitate to reach out and let's connect soon.
- Investor · Member since 2021 · 591 posts · 695 votes3y
@Antonio Cardenas I'm a SLC investor, and what @Nathan Gesner said is 10000% correct (I'd suggest reading his post again, because it could end up saving you an enormous amount of cash and headache).
Right now is an extremely risky time to be flipping houses (even for experienced pros). Unfortunately, there are a lot of flippers out there who aren't hitting their ARVs--in which case, they'd better have another exit plan, or they'll lose their shirt. You do NOT want to be the guy who's on the hook 550k for a house that you can't sell for 475k.
Personally, I wouldn't get anywhere near a flip right now (even though I have the experience to do one) ...not unless it was the absolute deal of the century.
I'd suggest studying up on strategies that are less risky, and more beginner-friendly (like house hacking).I've completed many house hacks in Salt Lake City--it's how I got my start, and how I built the foundation of my portfolio.
Regardless of what you do, make sure you thoroughly understand the SLC market--it has areas that are very strong appreciation plays that are recession resistant (e.g.; the most desirable A and B neighborhoods near the city center and the East side like Sugarhouse, the Aves, E. Millcreek), but it also has areas that, IMO, are very vulnerable to a market downturn right now (e.g.; the less desirable neighborhoods on the West side). Location, location, location--the most fundamental rule in RE.
Good luck out there!
- New to Real Estate · Salt Lake City · Member since 2022 · 5 posts · 1 vote3yHey Regan I’ll love to chat and see how we can help each other in the future !
Quote from @Regan Sellers Coté:
Hello Antonio! Welcome to Bigger Pockets Salt Lake City forum!
Starting out in real estate is so exciting! SO MANY possibilities, SO MANY pathways to explore, and SO MUCH opportunity to build wealth. I am sure you have so many questions. If you are in the local area, I would love to talk further about your goals and plans in SLC over coffee or lunch. I also can schedule a Zoom call if that works better for you!
I also have tons of questions, so it’ll be a fun time chatting ! - New to Real Estate · Salt Lake City · Member since 2022 · 5 posts · 1 vote3y
Quote from @Leo R.:
@Antonio Cardenas I'm a SLC investor, and what @Nathan Gesner said is 10000% correct (I'd suggest reading his post again, because it could end up saving you an enormous amount of cash and headache).
Right now is an extremely risky time to be flipping houses (even for experienced pros). Unfortunately, there are a lot of flippers out there who aren't hitting their ARVs--in which case, they'd better have another exit plan, or they'll lose their shirt. You do NOT want to be the guy who's on the hook 550k for a house that you can't sell for 475k.
Personally, I wouldn't get anywhere near a flip right now (even though I have the experience to do one) ...not unless it was the absolute deal of the century.
I'd suggest studying up on strategies that are less risky, and more beginner-friendly (like house hacking).I've completed many house hacks in Salt Lake City--it's how I got my start, and how I built the foundation of my portfolio.
Regardless of what you do, make sure you thoroughly understand the SLC market--it has areas that are very strong appreciation plays that are recession resistant (e.g.; the most desirable A and B neighborhoods near the city center and the East side like Sugarhouse, the Aves, E. Millcreek), but it also has areas that, IMO, are very vulnerable to a market downturn right now (e.g.; the less desirable neighborhoods on the West side). Location, location, location--the most fundamental rule in RE.
Good luck out there!
Hey Leo, thanks for the response. The community in the forums is amazing. Yes I’m currently doing some studying on house hacking stuff, like Airbnb !
- Investor · Member since 2021 · 591 posts · 695 votes3y
@Antonio Cardenas yes, there are many experienced pros on the forums who can provide insight. Just FYI: house hacking is not the same as air bnb, and air bnb is actually illegal in most parts of SLC (although that doesn't necessarily prevent people from doing it).
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