Does anyone have some inputs on American Fork UT, and its nearby surrounding areas? It seems to have grown quite a bit, with high tech companies moving in. Specifically looking at a new development in American Fork called Easton Park, Triplex.
Lehi & AF are definitely one of the spots that I believe are the best in Utah. There are also other areas that I'm keeping an eye on, such as Vineyard, Herriman/Riverton, Bluffdale, Draper, Sandy, Cottonwood Heights, etc. But Lehi/AF is by far my favorite because it is the heart of the next big tech metro. The population is rapidly growing, land and home value are appreciating FAST. The renters demographic is high-paying tech & education industry employees/families (UVU, BYU are minutes away, and they are both expanding their campus). The prices are definitely going up but not as built out as Vineyard or Herriman, thus cost to value ratio is great right now. Adobe is doubling the size of their office. There is going to be a huge retail growth surrounding Traverse Mountain & Thanksgiving point, the ongoing construction of the new mountain view corridor and the future transit projects will dramatically improve the access to uptown and the new suburban retail core. (which is another reason I like Herriman/Riverton area, because it will be much easier commuter access to the Lehi tech area) http://udot.utah.gov/mountainview/dld/MVC_MAP_Marc...
I hope this answers your question :)
Here are the links to articles/report that might be useful.
http://www.deseretnews.com/article/865669497/Futur...
https://pointofthemountainfuture.org/#home-section
Hi Mike, I am very familiar with the Easton Park project :) I work with an investors agent who works in the brokerage that builds and sells those triplexes and have helped a client buy a twelveplex and 2 triplexes.
I do a lot of market research for Utah rental market and I can say that American Fork and Lehi are by far the best spot for investing.
I also know of a couple townhome/sfh communities that are almost as good investment options, and a couple other new multi-family (duplex & Fourplex) development in other growing areas in Utah that are coming up in the next couple months. Unless you're already working with an agent for the triplex and need info please feel free to send me a colleague request :)
Hi Yuki, what do you like about american fork that makes you feel it is by far the best spot for investing?
Lehi & AF are definitely one of the spots that I believe are the best in Utah. There are also other areas that I'm keeping an eye on, such as Vineyard, Herriman/Riverton, Bluffdale, Draper, Sandy, Cottonwood Heights, etc. But Lehi/AF is by far my favorite because it is the heart of the next big tech metro. The population is rapidly growing, land and home value are appreciating FAST. The renters demographic is high-paying tech & education industry employees/families (UVU, BYU are minutes away, and they are both expanding their campus). The prices are definitely going up but not as built out as Vineyard or Herriman, thus cost to value ratio is great right now. Adobe is doubling the size of their office. There is going to be a huge retail growth surrounding Traverse Mountain & Thanksgiving point, the ongoing construction of the new mountain view corridor and the future transit projects will dramatically improve the access to uptown and the new suburban retail core. (which is another reason I like Herriman/Riverton area, because it will be much easier commuter access to the Lehi tech area) http://udot.utah.gov/mountainview/dld/MVC_MAP_Marc...
I hope this answers your question :)
Here are the links to articles/report that might be useful.
http://www.deseretnews.com/article/865669497/Futur...
https://pointofthemountainfuture.org/#home-section
Wow, impressive due diligence and research. You brought up so many strong arguments, obviously the Silicon Slopes aspect, but the renter demographic and universities expanding are such strengths. What type of RE are you looking at in AF/Lehi, MF or SF?
@Jared Carpenter Thank you! Extensive market research/analysis is what I do every day :) I do a lot of leg work myself but luckily My partner is one of the best investors agents in Utah County so I get to learn a lot from him. I also work very closely with financing and tax professionals who specialize in investment properties, so I'm in a very fortunate position to be able to have access to the very valuable and the most up-to-date information and knowledge :)
As you probably already know, there is very few new multifamily properties in the silicon slopes proximity. There is one group of developer/builder who builds and sells a great quality, smaller new construction multifamily to individual investors pre-construction (completely turn-key), and this line of product has by far the best ROI I've seen (100% ROI in 2 years), and it comes with about $100K immediate equity bump upon completion. But it takes 25% down, great credit and a good amount in reserves. If you have $105K-$200K to put down and have the patience to wait for a year for it to complete, it is definitely worth looking into. The Easton Park Triplex mentioned in this post is being built by the same group (unfortunately this project is sold out, but they are releasing a new project in Herriman, which we are planning on buying a pre-con duplex). My partner works at the brokerage that builds and sells this line of product, so we have personally bought a brand new Fourplex in Provo & a duplex in Vineyard ourselves and EXTREMELY happy with the return and the value (we flipped the duplex for 80% ROI in just 3 months using a 10% down investment loan with no PMI).
As for Lehi, my favorite approach is using a custom home builder that you can trust to build you a brand new condo or townhome. They are not multi-family but definitely a much better investment option than buying an old, rundown duplex that will cost you tons of money to maintain and repair. There are a couple great communities that have townhomes from base price $265K and condos from $195K. 4 bed townhomes are renting for $1,800 and 3 bed condos for $1,400.
My 2 cents when building a custom build is definitely to use a good investors agent who is familiar with the product as your buyer's agent and DO NOT go directly to the in-house agent unrepresented a when you do so because 1) investors agents know the most profitable configuration and location. 2) Most builders agents are like residential agents and often don't think about what the best approach is for an investor. 3) Investors agent will do everything to look out for your best interest, and they cost you ZERO money for all the insights, market knowledge, tips, shortcuts, tax saving strategies, etc that they can give you. Just ask them questions and see how much they know.
My partner is currently in the process of buying a townhome in Lehi and a condo in Vineyard. He's also planning on buying a pre-con duplex in Herriman this summer.
Send me a colleague request if you want more info, I'd love to share any info, market knowledge or connection that I have :)
@Yuki Inui, Thanks for posting this info... I will be following this thread as I am currently reviewing a Pre-Con Fourplex Pro Forma which will be built in Herriman, UT.
I live in San Diego and don't know the slightest about the UT market... reading your post has helped me narrow down my research path!!
Cheers,
Mike
Nice to meet you :) I'm glad I can help you better understand the market! When I was looking for reliable and specific market info for the interest of investors like fellow BP members and myself, I couldn't find any. So I thought I'd do it myself, and that's how I ended up meeting this group of genuingly good hearted, honest, hard working people who specialize in helping us smaller/medium size investors down here in Provo :) Whoever you're working with, I know their agents pretty well and the property management team is awesome. They have a great leadership.
Herriman is definitely one of the hottest growimg spots. If you're even just thinking about getting a fourplex from them I have to tell you, get qualified with Lane with First Colony today. The competition is high. The last project in Saratoga Springs sold out in a month. You would want to be ready to pull the trigger when it releases, and it's definitely worth your time and money.
I am considering "pulling the trigger" on investing along the Tech Highway in Utah..
I am only familiar with the multifamily new construction projects in the area. I am looking for long term turnkey rental properties, and didn't know there were options.
"Yuki"I would love to you to send me any all contact information regarding a good investment agent!
Thanks
Andrew
Thanks @Yuki Inui for the great information!
@Yuki Inui really appreciate the info ...
@Andrew Frishman Sent you a message :) Also if anyone here is looking for a knowledgable investors agent, talk to @Sam Levin By working with him you'll get all my market knowledge and insight for FREE ;)
@Vera Herlihy You're very Wellcome! I'm glad I could help :)
It would be worth mentioning that there is a very large 85 acre shopping center being built in Herriman/Riverton right now. They are anticipating it will become the center of a lifestyle in the southwest side of the Salt Lake Valley. Herriman/Riverton rental properties will be in the perfect location to take advantage of possible increased value once this project is completed. This development is in the area of 13400 south and Bangerter. This new Riverton center is envisioned as a mix of shopping outlets, restaurants, offices, a hotel, movie theaters and villagelike public spaces, all perched on the suburban city's western border with Herriman. It will be a place to eat, find entertainment, office space for work which will turn into employees looking for a place to rent. Construction on the shopping center has already begun and it is expected to be complete late 2017. Now is the time to buy in Herriman/Riverton area. I know that there is also new condo/townhome/SFH communities in this area that are great investment.
Also, Real Salt Lake professional soccer team is building their World Wide indoor soccer training facility right next to one of our Herriman communities. This training facility also has the potential to attract increased renting possibilities.
@Yuki Inui Wow, it sure sounds like there is some major growth happening. How is all that business moving there, are there tax breaks or incentives?
@Vera Herlihy There is a HUGE tech boom called "Silicon Slopes" happening here along Wasatch Front along I-15. It's becoming the new Silicon Valley. Utah has the highest birthrate and lowest median age in the nation because of the mormon religious culture (big families with 5+ kids aren't rare here in Utah) plus all the increasing tech, education and health care industry jobs are bringing thousands of people from all over the states every month. The population is doubling by 2030, housing demand is outpacing supply by 2 to 1. http://www.deseretnews.com/article/865672564/Deman...
The home value has been going up 1% a month for the last 2 years in Utah.
It looks like there are some incentives and tax credit:
http://business.utah.gov/programs/incentives/edtif...
http://business.utah.gov/programs/incentives/
If anyone wants credible market reports PM me :) it looks like a lot of people are having hard time finding them.
The growth is true, it's amazing how much has changed over the last 5 years. But I would recommend out of state investors to study the average household income and the home prices, the relationship between them will affect how long the growth will last.
@Yuki Inui thanks for the great articles, really helpful.
@Joe
@Joe Au Very true. That is why market research is VERY important, because Utah is such a unique market that it's hard for out-of-state investors to understand and read the market correctly. I do it obsessively and read every data and government issued market reports, local reports, development plans and park/rec plans, zoning, MLS and census statistics, etc that I can get my hands on on every city I look at, especially because I'm personally invested in this market also. It does take time, effort and a good amount of leg work but it's definitely worth it.
@Joe Au so I looked it up the average household income is between 60 and 76K the numbers below are from 2016
| Householder under 25 years | $31,681 |
|---|---|
| Householder 25 to 44 years | $62,780 |
| Householder 45 to 64 years | $75,534 |
| Householder 65 years and over | $44,764 |
These cost of living numbers are from 2017 here's the link I found, do you think these numbers are wrong?
https://www.expatistan.com/cost-of-living/salt-lak...
I calculated 62K income with rent at an average apartment 1,142. is about 54. 29%
The following link talks about what percentage you should spend on housing.
https://smartasset.com/mortgage/how-much-should-i-...
I want to make sure I'm understanding correctly, what you're saying is that in the long run the affordability isn't going to be there, so it's not great for our state investors?
Thank you so much for your time. I really appreciate it. As I'm looking at this I'm remembering something I heard Jay Papasan say, "I'd rather lose 5 good properties, than buy one bad one."
I really appreciate your help.
vera
@vera
I'd hate to highjack this thread more than I already have, but just wanted to throw my 2cents in... When you look at the market here, try not to mix Salt Lake City with the tech booming area, like American Fork, Lehi, Riverton and Herriman. SLC has very different demographic than the silicon slopes proximity.
Source: http://www.bestplaces.net/compare-cities/salt_lake...
1. Silicon Slopes proximity has a mixture of very heavily dense Mormon residents (as you can see the mormon resident percentage is translated in the low median age), college students from both out of state and in-state (especially Provo, Orem, Vineyard. A lot of mormon students at BYU are already married and starting family while they're in school ) and the tech employees. The closer you get to Provo, the heavier the mormon density is. The growing tech metro area is about in the middle between SLC and Provo, which is Herriman, Riverton, Bluffdale, American Fork, Lehi, Highland, and Provo-orem area. Provo & Orem (and Vineyard) have way more college students. Because of the geographic of the Utah valley there is a limitation for the population growth to expand to, the more rural areas will become much more heavily dense as well. And they will start building up, and I'm already starting to see many high rise housings in the tech boom epicenter.
What I have learned from reading multiple credible (mainly government data) market reports both macro and micro, I don't see any indication of a housing bubble in the foreseeable future. The housing shortage has been causing quite a bump in home prices lately, but I see a good consistency in the population and land/home appreciation growth. My personal prediction for my own investments is that the correction will probably happen sometime in the next couple years, but I don't think it will be anything like the last crash but rather moderate, and that it will not stop Utah from growing. I could be wrong, but I'm pretty confident in the amount of work and time I've invested in researching this market myself. You would be surprised how highly educated people here are down in Utah county, most of them are genuinely good-hearted and hard working here and make REALLY good tenants. I say that as non-mormon person who has lived in SLC for 7 years and in Provo-Orem area for over a year. The business industries have a very firm and healthy backbones. The mormons aren't going anywhere, and they will keep having kids. https://www.forbes.com/sites/amyfeldman/2017/04/03...
Also, I feel a bit more optimistic about our market because with rental investments, even if a correction occurred, or something unpredictable happens, the renters aren't going anywhere, because those parents 3-5 kids who can't afford the mortgage will still have to put their family in a home somewhere. And by then there will be lots of new builds to compete with. Imagine buying an old crappy duplex and having to put my money and time into rehabbing it and keep paying more out of pocket to maintain it, AND having to compete with all those newly built townhomes down the road. I would rather buy a brand new condo or townhome which will have better rents and better quality tenants. As long as I don't have to sell (which I won't because I will have my newly built investment properties which only cost me 10% down, which pays for itself, has 100% ROI in 3 years and will be worth much more. I could also flip it in a year or two to gain an instant profit so I can roll it into newer and bigger multi), I fell pretty good about my choice of investment.
From Salt Lake Board of Realtors 2017 Salt Lake Housing Market Forecast:
@Kilter L. I would love to but they don't have a specifics on their website. Send me a colleague request and I will send you some more detailed info :)
It's investment loans. 30yr fix, need 720+ FICO score, limit 2 loans per person at a time. The limit is $420k. If you want to learn how to quickly improve your credit score, I can connect you to someone who specializes in it and she's REALLY good and she does it for $149/one time fee, she will tell you straight up if its something you can do yourself, and what to do and what not to do, and it is surprising how much little things could negatively affect your score.