San Diego, CA · Member since 2016 · 17 posts · 8 votes
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.
That's great! I will send you the contact info :) Pleasant Grove is a really good area also! Nice, if you have enough equity built up, I would probably re-fi and put it into a newer rental property if I were you :)
Fort Collins, CO · Member since 2016 · 34 posts · 13 votes
9y
Thanks for all the information. I looked at utah county market to invest in a fourplex, but i do have only 50% of the down payment required. I am interested in talking to someone who are looking for partners and are local to market.
Rental Property Investor · Vineyard, UT · Member since 2017 · 47 posts · 40 votes
9y
I found this so I thought I'd share it with you guys:
Is this helpful that I post data/analysis and market info that I find to be fairly accurate? I am receiving so many questions about Herriman/Riverton/Lehi area that I just thought maybe I'll post them in one place. Should I just start a new thread??
Rental Property Investor · Vineyard, UT · Member since 2017 · 47 posts · 40 votes
9y
More accurately my partner Sam Levin works at the RE/MAX Equity in Provo, which is a brokerage where the principal broker Steven Bond designs, builds & sells new multifamily as a team with the builder/developer Mike Miller. Sam is not one of the builder/developer's in house agents (he has his own company that specializes in helping small to medium investors, and does single unit rental properties as well) but Sam works very closely with them and personally has invested in several of their products himself. And I do the market research / coordinating transactions and such :)
Investor · Park City, UT · Member since 2016 · 46 posts · 15 votes
9y
@Yuki Inui can you elaborate on the 10% down program? Are there also monthly payments to cover the construction loan during the year it takes to build? If it's truly only 10% down and no payments, I need to look into this further. I disregarded it earlier in the year as I misunderstood and thought you had to put 10% down and then pay the monthly payments on the construction loan as it was being built...I really didn't want to make payments without some cash flow (rent). Can you set me straight -I think I'm misunderstanding the program and how it works...
So just to clarify, 10% down non owner-occupied loan has a limit of $420K purchase price. Assuming that you are interested in buying something new rather than old multifamily, I can say that it is perfect for buying a condo/townhome/single family homes that I mentioned earlier in this thread. The pre-construction multifamily deal that I know of (and I believe to be the only line of products there is in Utah County/Northern Salt Lake County requires 25% down construction loans, which could be a little difficult for some people to qualify for and come up with the downpayment needed.
Having said that, here are the details on those single unit rentals (condo, townhouse and SFH) using 10% down (or any kind of loans):
It only takes total $3K up front before the construction starts ($1K earnest money upon signing the purchase agreement and reserving the unit/lot. $2K for construction deposit within about a month from signing the contract)
No additional payment needed until the remainder of down payment is due at the closing upon completion (so 10% down payment of purchase price minus $3K)
Construction period: 6-7 months
Comes with 1 year builders warranty
This program is great because it doesn't require PMI, which usually cuts into the cash flow greatly.
Here is the breakdown and list of available properties in Herriman and Lehi:
I hope this helps :) I'm sure everyone here thinks I'm such a geek lol
Investor · Houston, TX · Member since 2013 · 41 posts · 16 votes
9y
Rohith - feel free to send me a colleague request too. We have a duplex in Slc and a condo in Provo but we're starting to look out of market due to the price points in Utah but we do have cash and if a partnership makes sense we'd love to look at it with you.
Unfortunately this particular builder only builds singles (condo, townhouse and single family). The scarcity of the multifamily developments that are available for individual investors is EXTREMELY severe down here. The only pre-con multifamily that we know of is VERY hard to acquire right now because of the rapidly increasing demand. Hard to qualify for the minimum 25% down construction loans required, so ball park initial upfront cash before the construction starts (which is when you close) is duplex $110k, Fourplex $210k with 25%. All the duplexes they are building in Herriman are in the first phase, which is happening in a matter of weeks if not days, and they could all be spoken for, possibly the 2nd phase as well (there is a very long list of people who couldn't get into the last couple projects waiting for this release) and it's look Although there might be an opportunity for a resale duplex, triplex or Fourplex that surface off market, which runs around 6-6.5% cap rate. You can't use the 10% down for these resale because the market value of existing duplexes is at least $450K today (we just sold ours that completed in February for $475K) and the price limit for 10% down is $420k.
If you're going for a multifamily that's older and cheaper, I wouldn't advise it, for many reasons. I would buy 2 brand new turnkey townhomes in the areas like Herriman or Lehi, using 10% down. If you wanted to you can liquidate one of them and get a brand new multifamily, but with an old multifamily you can't liquidate partially.
Investor · Redondo Beach, CA · Member since 2017 · 134 posts · 46 votes
9y
@Yuki Inui oh ok, so the price for a duplex is $110K and a fourplex is $210 with %25 percent down? I would consider buying at those prices, but not at the resale price, those resale prices look like Ca. We agreed that we wouldn't do anything in as association, so I don't think that's going to work for us, but I'll show my husband all the great info you've shared with me.
Sorry if it was confusing, but that is what the down payment would be with 25% down (and the purchase price isn't concrete). Their HOA is really great and very accomodating, and they are there to make sure that the entire development will equally be well maintained so they can keep renting the properties for the top dollar. But if that's not what you're looking for then maybe it's not a good match for you :) Most new developments have HOA, including Single Family Homes. The renters love not having to mow the lawn themselves (it would probably be different if they were homeowners), that the community they live are clean and maintained, and have access to the amenities which most new developments do. So from the rental investment stand point, especially if you are doing a remote investment, it is a good set up as long as it is an HOA that is good (such as the ones in Day Break communities, super strict HOA rules and restrictions for rentals)
Rental Property Investor · Vineyard, UT · Member since 2017 · 47 posts · 40 votes
9y
Sorry it looks like I hit submit by accident before I was even done. Yes @Ryan E. is correct (thanks for filling in!) except for the price for Fourplex is actually now up to $725K+ because of the increased cost of framing and land. Duplex is $385K+ but may already be all spoken for. FIG is great, I work with them and live in a Fourplex they built in Provo. We are But it has become almost unattainable very quickly... it is literately a blood bath right now. If you are a returning client you would have a better chance. The resale of these fourplexes are being traded around $850K today, duplex for $460K+ (we sold ours for $477,500 a couple months ago. We didn't buy it pre-con but bought it right before completion for $417k. We are rolling the proceed into another builder's condo in Vineyard and a townhouse in Lehi using 10% down investment no PMI loan. Also thinking about making a move on one in Herriman before everyone else catches up... hopefully we can before the next price increase)
Investor · Spanish Fork, UT · Member since 2017 · 18 posts · 5 votes
9y
I have been following this post as I have several investment properties in Utah County. I have a 4plex in Provo, and a duplex and SFH in Spanish Fork. I prefer south Utah County because it is nearly impossible to find a good deal farther north (Lehi, etc). With the housing shortage in Utah County, rents and purchase prices are being driven up just about everywhere. With the frontrunner commuter train, many people are opting to live a bit farther South from Lehi area as it is so congested there.
Ridgefield, CT · Member since 2017 · 101 posts · 60 votes
9y
correct me If I am wrong ........the household income to home price should be less then 3 in order for there to be room for appreciation in the future in a given demographic?? Example: Home price = 230 Median Home price ------------------------------------------------------------------------- = 2.87 = room for appreciation... House hold income 80K
Ridgefield, CT · Member since 2017 · 101 posts · 60 votes
9y
I believe after reading this thread...there is potential for serious investors to potentially pool there knowledge...to invest in a given community. Each of the investments would be individually owned. The idea would be to use "group buying power" to get discounts/"deals" on group purchases..so everyone (buyers/ Sellers) wins..
Real Estate Agent · Los Angeles, CA · Member since 2017 · 7 posts · 7 votes
9y
@Katie Stone: How are your rental properties doing? Would you mind sharing any details about them? (Ie. when did you buy them, price, rents, are you managing them yourself, etc?) Thanks!
Investor · Spanish Fork, UT · Member since 2017 · 18 posts · 5 votes
9y
@Brian Pincus: They are doing very well. We purchased our 4plex in 2004 for 300k. It has 4 townhouse style apartments that are 3-4 bd/1.5-2 bath/1300-1500 sf each. The latest appraisal was at 730k. We net 4k per month on that property (we generally have longer term tenants and our rents are low). Our duplex we purchased for 128k 10 years ago. It is now worth 275k. It brings in $1600. We just purchased another single family home for 220k (worth 275k) and brings in $1600. Our SFH we just sold we purchased for 115k 9 years ago and just sold for 165k (super small 2 bd). We are not flippers, but generally buy and hold. Our philosophy differs from many on this forum as we don't believe in debt, so I know our returns aren't what others are getting, but everything will be paid off in 4 years. At that time we will only purchase with cash.
We do manage them ourselves. And we generally rent them out in a day or two. I prefer to keep our rents a little low, get GREAT tenants, and not have to have them empty for a month.