Looking for next property in Utah

10 Replies

Hi BP Utahns. I grew up in Utah and lived there all the way up until three years ago. The real estate bug bit me here in Seattle while looking for my first property. I’ve been looking into property since then but the same appreciation that has increased my home’s value more than $200,000 in the last year and a half, has unfortunately done so to everything else around here too. Darn...

I’m looking in Utah, amongst some other states, for buy and hold small multi or a house in a college town (Provo/Orem/SLC) I can rent out per bedroom. I’m fairly familiar with Utah county Orem/Provo/PG/Lehi/Eagle Mnt. but not so much with SL county other than downtown SLC. 

Who here does buy and hold? What areas are you seeing some good returns in? I’ve noticed the price for new construction is right around the same as 10+ year old houses. Anybody renting out new construction? 

Really excited to hear what you guys have to say!

@Max Guerrero Hi Max, I have rentals in Salt Lake City and Sugarhouse. I returns are good. What you are going to find is that returns are slightly better in c or  low b grade neighborhoods. I walked through one yesterday that is priced at 279k and gross rents are 2,800. I was showing this to a potential buyer. Neighborhood for that one is just ok. The duplex is awesome but neighborhood is ok. 

If you want to buy in a A or high B place then the return isnt as good. 

I have a friend that recently got a townhouse in the Lehi area that is pretty new and he is renting that out. I am not sure his return but it rents easy and it has higher end tenants. If you by in that tech corridor you can get some great tenants and you can get new construction type stuff. 

Eric, the tech corridor covers what now? That whole area has blown up since I moved to Seattle. Are you seeing a lot of these companies bring transplants? 

@Eric Gardiner if your buyer does not want that duplex shoot me a message as I would be interested.

@Max Guerrero I am seeing decent returns in C- class neighborhoods and a LOT of deals that wont cash flow, if that is your game. I am mainly looking for really rundown property now with a good price tag or something value add like that.

@Scott Bowles I love deals that don’t cash flow! Kidding. Are you talking about cash flow negative but big upside in appreciation?

I mean appreciation in the short to medium term seems like a gamble but I assume some people are considering it a sure thing because from where I am sitting bad deals are bought and sold every day haha. There are some cash flowing opportunities though but gotta look for them!

@Max Guerrero I've been investing in Utah for the past 7 years. Anything close to one of the universities or freeways will almost never have vacancies. I agree with @Eric Gardiner that Utah county is the place to buy right now. I can also help you with the financing when you are ready to buy. 

@Ty Burns Anywhere specific in UT county that you recommend? What’s growing/appreciating more than others? I have my suspicions but want to hear it from someone else.

@Max Guerrero I would say from Lehi-Thanksgiving point area all the way down to provo area. Have not explored much any further south than that. I know there is the new Amazon warehouse going in near the airport I think, so North Salt Lake/Bountiful area might be a good option as well.

@Max Guerrero
We lived in North Seattle for 6 years, love it there. It’s pretty hard to get much better than a 6% cap rate (True Cap) because of the Silicone Slopes and all the jobs/residents coming to the South Salt Lake County and North Utah County areas. I just put money down on a triplex as well as a Townhome in North Utah County. I already have two rentals there and I love how close they are to the growth around Thanksgiving Point/Silicone Slopes and the type of renters I’m able to get. Everything I have purchased has been over a 6.5% Cap which is really hard to come by but they’re there if you know where to look. I have a few pocket listings I’d be happy to send over if you’re interested. I’d also love to talk about the market and area and answer any questions you have. Good luck!!

@Sam Newell Send me whatever you’ve got. I love Seattle but can barely afford to buy something in Tacoma at this point. I’d have to get really creative on how I’d want to rent the property in order for it to make sense. I’ve been saying for years that Lehi/Eagle Mnt. would be a really smart place to buy but never did it myself. Now I’m looking to buy when it makes the least sense!

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