New Investor in Salt Lake City, Utah

5 Replies

I am just starting out in the world of real estate and looking for a small multi-family property (2,3,4 unit) in SLC. The prices and environment here feel crazy but I have nothing to compare it to as I am fresh into the real estate world. Does it make sense to wait for a correction/recession and just keep stacking up cash? Or do I just buy and hold for appreciation. It feels like the margins are too tight to make sense of buying something, everything would have to go perfect for me to break even every month.

For example: Duplexes are going for $300-500k and renting for a total of $1600-3000/mo. Cap rates are like 4.3-4.8. 

Anyways, glad to have found Bigger Pockets and I have been soaking up as much information as possible.

I guess my question is this: What advice would you give to a new investor given the current position in the economic cycle?

Plan and prepare as if you are going to buy one this year.  Get a good agent, talk with some wholesalers, overall be proactive.  You may not purchase one this year but if something does pop up this year or next year you will have positioned yourself with your finances, knowledge, and experience to recognize and capitalize on a good deal.  BTW welcome to the group.  Feel free to reach out as these forums are always willing to answer your questions.

I'm new to this as well, and In our market it is extremely tough to justify the buy and hold strategy for the exact reasons you talk about. I've found success in being creative. My first deal was a SFH that I rehabbed into a SFH with a basement apartment. I've found that I was able to get the rents up close to 1% by renting the top and the bottom. But, like I said, you have to be creative in this market to get it to work!

Anders, 

You're right, it's tough right now because of how fast properties are moving and how expensive they can be. However, that doesn't mean there aren't deals out there. 

You might consider finding a property you can put sweat equity in instead of buying something new. Also, you might team up with someone that is in the REI game so you can learn how they invest when the market is like this.

Welcome to the BP group!

Welcome to BP. That’s exactly what I am positioning my wife and I to do. We are proactively looking as well. It’s definitely a hot market and I think @Matt Sumsion is on point with the sweat equity route in this market. That’s what we are going to try and do. Best of luck!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you