New to Real Estate · Greenville, SC · Member since 2020 · 16 posts · 10 votes
Hi Utah BP Community!
I am looking for a little guidance on a rental property I have in Salt Lake City. I am debating selling it to cash in on the equity, or pull out a HELOC to invest in other properties. What has worked well from others in the BP community and what makes the most sense to build my portfolio?
Side note: If anyone has an investor friendly realtor and CPA they would be willing to share for the Salt Lake area that would be greatly appreciated!
I'm a fellow Utah native, investor and Realtor. I have been mulling over the same question for a few years now with the rentals I own in Davis and Weber Counties and would love to connect and talk to you about the options you have!
I did end up cashing out on two properties in Layton and Clearfield, but I also choose to cash-out refi on another and keep a few more up in Ogden. There has defiantly been pros and cons to both decisions! I found that placing the money I cashed out on was more difficult that I imagined but it did give my portfolio a major boost.
All in all, it really boils down to your long term goal. The most important next step for you is likely deciding what that long term goal should look like.
I'm a fellow Utah native, investor and Realtor. I have been mulling over the same question for a few years now with the rentals I own in Davis and Weber Counties and would love to connect and talk to you about the options you have!
I did end up cashing out on two properties in Layton and Clearfield, but I also choose to cash-out refi on another and keep a few more up in Ogden. There has defiantly been pros and cons to both decisions! I found that placing the money I cashed out on was more difficult that I imagined but it did give my portfolio a major boost.
All in all, it really boils down to your long term goal. The most important next step for you is likely deciding what that long term goal should look like.
Realtor · Provo, UT · Member since 2020 · 374 posts · 270 votes
4y
Hey Lindsay, I am an investor and realtor in the area as well.
I think every investor has had this issue in Utah (a great problem to have). To best answer this question it comes down to your goals on return on equity. For my rentals, I have decided to leave the equity in there for a year or two longer and then 1031 into something substantially larger.
I see that a few other realtors have already reached out, but would love to connect and see if I would be a good fit to help you achieve your goals.
Cedar Hills, UT · Member since 2019 · 68 posts · 43 votes
4y
@Lindsay Z. Love to see more investors in Utah :). We have a few properties in Utah County, including two in an opportunity zone, which we cannot sell for a while if we want to capitalize on the tax benefits. However, we had a lot of equity within the first year and were able to get the original bank who financed us to get us low-cost seconds on each to facilitate capital for other investments. Nice about a second, it's a fixed rate. We also have a HELOC that has been used to finance some acquisitions, and with rates climbing, the payment on that is getting a little larger, as you can imagine. A cash-out refi would get you a fixed rate as well with a great long-term, but as rates again are higher, it really depends on where this puts your payment versus your rental income.
We have considered doing this on another property where we currently have 50% LTV, so there is a lot of equity, but we are still debating, as the refi would put our PI+TI at just under our rental income for that property... However, it would facilitate our investing goals for the year, so we continue to debate :)
I also have a great Accountant who works with a lot of Real-Estate investors. I'm glad to share his information if you're still looking for one.
New to Real Estate · Greenville, SC · Member since 2020 · 16 posts · 10 votes
4y
Thank you @Duane Richards, that helps me think through things a bit more clearly. I just sent you a DM about the accountant too. I appreciate your help!
Investor · Member since 2021 · 591 posts · 695 votes
4y
@Lindsay Z. for a realtor, I'd suggest Dane Anderson at Keller Williams; I've worked with him for years, and he has extensive knowledge of, and experience with pretty much every aspect of single fam and small multi-fam investing in the SLC/Bountiful/Ogden areas (i.e.; flips, BRRRRs, cash out refis, HELOC-funded rehabs, etc., etc.).
I don't have a suggestion for a CPA, but on a related note, I do have an suggestion for an excellent mortgage broker, who I've also worked with for years--Brian Heiser at Academy Mortgage. Top-notch service, a wealth of knowledge, and very professional.
If you have any questions, just send me a message.