Aloha everyone, My name is John and new to the biggerpockets forum. I'm new to the investment community as well and been constantly learning the past couple of months. I'm happy to say that i'm very greatful and thankful for finding biggerpockets and the huge community here as well as the great people i'm meeting and able to connect to.
Recently, I was able to talk to a colleague of mine about the potentials of the real estate market in Utah. I started looking and possibly found some multifamily or multi-plex properties in the Greater Avenues and was a little curious. Is anyone familiar how the trends have been doing in terms of real estate in this part of Salt Lake City, Utah? Is this a good place to invest in? What is the typical price range for multifamily homes? What should I lookout for when investing in properties here? When looking at investment properties, what is the typical cap rate? (is 8% good?) is this a good indication for a good roi?
I tried working on the tools section in the site when it comes to rental properties, but i'm still a little bit lost. Does anyone know the typical utility fees in the area? electric, water, garbage fees? property management fees? or anyone can refer me to a good property management company in the area?
Thank you everyone and any information is greatly appreciated. Have a great week.
Hi John, welcome to BP.
Greater avenues is a good area, but there are definitely some old junkers in the neighborhood. Generally speaking, it's a nice place to live.
As you would expect, prices for multis are going to vary based on a bizillion factors, but just as a current example, there is 1 duplex on the market in the Greater Avenues neighborhood.
DOM is 170
1600 sq. ft
built 1911, remodeled 1992
starting price $369k
current list is $340k
$2250 annual tax
$1700 monthly rents
PM here is 10%.
Lots of factor are going to influence your cap, but if you can get 5% in A rated areas in Utah (really anywhere), you're probably doing as good or better than most.
@John Ozoa-Sioson Are you planning to invest from Hawaii? The avenues are great but they are expensive. Vacancy will be rare because of where they are located.
@John Ozoa-Sioson I have lived in the Avenues and invest in Utah. A few factors to consider:
The Avenues is a beautiful area but many of the houses in the Avenues are heritage ($$) or just very old. Be sure to check plumbing, sewer etc, some of those houses have clay pipes going out to the sewer main, that can set you back 30-60k on a sewer replacement alone, depending on how far the property is from the street. With some of the aged houses, for example I lived in a house built in 1800 (not uncommon), everything replaced now would be custom and a pain for the contractors ($$).
Prices in Utah have spiked over the last two years as many head quarters have moved there, tax incentives and what not. We are seeing the same thing now happen in Nevada with Amazon moving there. There still deals as in any market but also lots of cash buyers coming from the West Coast. The Greater Avenues would be one of the A class neighborhoods to invest in. Some surrounding areas have houses that are 1930-1970 + so less special work required, same or similar rent income and may be priced significantly less. Have a look around liberty park, 9th and 9th, the far end of 9th and 9th is being revived and it will do amazing things for the area.
Many people have been priced out of SLC all together and are moving out of the city to commute in, I like area's like Cottonwood, Sandy, Bountiful, Ogden. The place I own in Ogden rents for the same (or more) as what some of my friends pay in rent in the Aves and I bought it for significantly less and in great condition.
If you ever want to talk specifics about Ogden, let me know! Best of luck.
@Blair Poelman. Thank you for the info. I Appreciate it.
@Eric Gardiner, was looking into it with maybe even partnering with some colleagues, but still figuring out if it's worth it especially that its long distance.
@Lauren Weiss, thank you so much. I greatly appreciate your input. I tried emailing a seller, but was told if I was not living in Utah and didnt own any properties or rentals in Utah that I probably shouldn't start now. I just recently learned about the silicon slopes and the different cities. Thought it would be nice to own properties at states you may want to visit as well. That seller may be right in some way, and the way things are now, properties in major cities or everywhere are on the upper end... but didn't want to lose a chance on a possibly good deal when u find one.
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