Where are the Deals for 4plexs and Duplex's in Utah?

[Nate Powley]

My Summary of trying to find the best deals for 4plexs and Duplex's in Utah

The 3 main areas i know are Davis county, Slc county, Utah county

Affordability:

SLC county has by far the most expensive properties with nice 4plexs going for over 1.2 million. The most ghetto areas of SLC county with beat-up 4plexes and Duplex's are about the same price as Davis and Utah county's best small 4plexs and Duplex's. Davis County is slightly cheaper than Utah County and likely has better growth, I would say this area is best area to target.

Fix and Flip Opportunities:

The current market is not great for fixing and flipping 4plexs and Duplex's in Utah, On all of me and my investors recent purchases, the ARV is not great and I think that caprates uncompressing is hurting this type of strategy as well. There are also not a lot of very beat-up properties in the Utah market as well. I would not recommend this strategy.

Deals:

The markets have been stagnant for the last 9 months, prices have not risen and expensive properties with higher rents are having trouble selling, even if they are at the same market caprate. Caprate is between 5.5%-6.5%, anything over 6.5% is a great deal. Seller financing opportunities have been growing in popularity.

Most Recent Deal (March 2024):

I purchase a double duplex in SLC county, in Glendale, has some mailbox theft issues. The property is a 7% caprate, this the best deal I've seen personally in the last 9 months, it was an off market seller who is doing seller financing. I purchased the property at 755k @ 5% interest with a 10 year a balloon. 205k downpayment. The property has been fully renovated, but has yard and fence that need to be fixed up. Rents are currently $1,200 per month, I expect to raise them to $1,375 per month when I add a storage container and do exterior fix ups (30k), the monthly payment is $3,660, so $5,500-$3,660=$1,840, so $22,080 cashflow per year.

Summary:

Utah is an increasingly expensive market. It has great appreciation, great rent growth, and great landlord friendly laws.

Ask me any questions you have about the Utah market!

[Logan M.]

Quote from @Nate Powley:

My Summary of trying to find the best deals for 4plexs and Duplex's in Utah

The 3 main areas i know are Davis county, Slc county, Utah county

Affordability:

SLC county has by far the most expensive properties with nice 4plexs going for over 1.2 million. The most ghetto areas of SLC county with beat-up 4plexes and Duplex's are about the same price as Davis and Utah county's best small 4plexs and Duplex's. Davis County is slightly cheaper than Utah County and likely has better growth, I would say this area is best area to target.

Fix and Flip Opportunities:

The current market is not great for fixing and flipping 4plexs and Duplex's in Utah, On all of me and my investors recent purchases, the ARV is not great and I think that caprates uncompressing is hurting this type of strategy as well. There are also not a lot of very beat-up properties in the Utah market as well. I would not recommend this strategy.

Deals:

The markets have been stagnant for the last 9 months, prices have not risen and expensive properties with higher rents are having trouble selling, even if they are at the same market caprate. Caprate is between 5.5%-6.5%, anything over 6.5% is a great deal. Seller financing opportunities have been growing in popularity.

Most Recent Deal (March 2024):

I purchase a double duplex in SLC county, in Glendale, has some mailbox theft issues. The property is a 7% caprate, this the best deal I've seen personally in the last 9 months, it was an off market seller who is doing seller financing. I purchased the property at 755k @ 5% interest with a 10 year a balloon. 205k downpayment. The property has been fully renovated, but has yard and fence that need to be fixed up. Rents are currently $1,200 per month, I expect to raise them to $1,375 per month when I add a storage container and do exterior fix ups (30k), the monthly payment is $3,660, so $5,500-$3,660=$1,840, so $22,080 cashflow per year.

Summary:

Utah is an increasingly expensive market. It has great appreciation, great rent growth, and great landlord friendly laws.

Ask me any questions you have about the Utah market!

 Do you feel like that purchase was worth it since you had to put so much money down?

I think the interest rate is nice in this market but the return on your money annualized looks low, I am just curious what I am missing. Maybe the play is appreciation?