San Mateo, CA · Member since 2016 · 78 posts · 28 votes
Hi BP,
I'm doing research into various markets and SLC is an area I'm looking to learn about. My strategy is to look for long term buy and hold rentals that are either SFR or multi. I live out of state so I won't be close to manage it.
Wondering if the community has any recommendations on where to start looking, up and coming neighborhoods, trends that I should keep an eye out for outside of what I can read on the internet.
I'm also open to looking north and south of SLC in areas that include Ogden down to Provo. Have heard good things about Bluffdale, Vineyard as 'up and coming' areas. Hoping to take a trip out there soon.
Thanks,
Andy
I've lived in SLC for over 20 years and I've never heard anybody say the mountains lock in clouds and gloom. SLC averages 222 sunshine days a year. Denver averages 245 for reference.
Hi Andy, I also am a out of state investor. There are many good things about the area, and state. Good projections in all categories! You are correct in your north to south, there are pros in both areas. Ogden is becoming a high tech region and attracting plenty of attention. The state is highly rated for quality of life and out door activities. It is growing, and growth in many areas. Check out the building expansion for the SLC airport. Both KLM and Delta have started direct flights to Europe.
If you look at geography? Look how far it is to Denver to the east, Las Vegas to the south, Boise to the west, and what Idaho Falls to the north. The area is booming!
Thanks Martin Carstens
Those are very interesting points about location relative to other major cities. And SLC supporting more international flights and connections.
People say the transportation system is pretty good there which is also a reason I think investing in north south expansion and areas close to the stations would be worth looking into.
@Andy C. you might consider the weather. I have friends that lived in SLC and they hated the weather. The mountains lock in the clouds and gloom. Just 50 miles East and it's beautiful weather. I think that getting real traction is going to be tough due to the weather there. It holds so much promise but limit sunshine. Big downer in my mind.
I've lived in SLC for over 20 years and I've never heard anybody say the mountains lock in clouds and gloom. SLC averages 222 sunshine days a year. Denver averages 245 for reference.
@Anthony Hurlburt , I'm assuming @Bill S. is referring to the inversion. It has been a growing problem that appears on the news weekly during the winter.
That being said @Andy C. , Utah county has a lot of tech companies coming in and Ogden has a growing economy and growing population as well. However, Salt Lake Valley seems to be a bit overinflated at the moment due to the lack of supply.
Here are some local issues or things of note that might affect the market besides the forementioned Smog problem. Utah has a large Mormon population which favors larger families and family focus which frequently encourages those that move away from the state to eventually return. The outdoor community is also pretty influential in the area, with many people moving here for the mountains. The U of U and BYU both have good rankings and both focus heavily on small businesses and entrepreneurship usually leading to more businesses. That being said, it seems like there are many real-estate investor wannabees (myself included) who overinflate the market on things such as multifamily. There have also been some threats by some local companies to move the Outdoor Retailer Show, which has been advertised as bringing in 500 million dollars into the local economy, but that seems high and is probably a total rather than annual figure. There are a number of DOD contractor companies that are based here locally including a new Boeing plant. In general, Salt Lake and the surrounding area has a pretty educated population encouraging more companies to open up locations here.
There is always more, but hopefully, that's a nice little snapshot of the Greater Salt Lake area.
Bill S. Interesting perspective on weather. I mean, I could see that being a factor. How many less snow/bad weather days does Denver really get less of?
I suppose Anthony Hurlburt y has answered that. But you could make that an argument for any major city that has not so great conditions. Thanks for sharing that data point.
Tyson R. That's some valuable local knowledge from an out of state investor - thanks for sharing. I love that there are tech companies opening up satellite offices there. And really interesting to understand the dynamics of the demographics + how culture impacts the local businesses!
I'm open to Ogden. But am more keen on areas south of SLC where the job growth is occurring.
In general I would say that Ogden is less expensive than south of SLC. The properties will usually cash flow better in Ogden. The downside is lower quality of tenant and a slightly less robust economy than SLC and south.
However, economic reports have indicated that Ogden is among the fastest growing locations in the U.S. Plus, the commute into SLC from Ogden isn't that bad, so the tenant population is growing. Tooele too. In the Utah County areas, you have go a bit further south than the mainstream Valley markets to find anything most of the time. The best buys are those close to college campuses, but they are rare gems.
@Andy C. We have built and sold over 350 units in North Utah County and South Salt Lake County in the last 5 years, our market here is booming and there is still a major shortage of apartments and homes. I went to the Utah Housing Summit a few months ago that was presented by University of Utah economists and they showed us that there are no cities in Utah County currently keeping up with the demand. You're right, Vineyard and Bluffdale are fantastic. The "Silicone Slopes" of Lehi have brought in over 62,000 jobs in the last 5 years. Companies like Adobe, Ebay, Amazon, Xactware, Vivint, Ancestry.com, Entrata, and others have all set up shop in the area. I always recommend to my investors that you buy close to where the job growth is, and the number one job growth area in Utah is Lehi. We are currently building fourplexes and triplex communities withing 5 and 15 minutes of the Silicone Slopes. We're also building in Houston and Boise. If you'd like more economic data, articles, and stats on the best areas to buy let me know, I'd be happy to forward some info on to you. Best of luck.