I'm planing my next road trip and considering visiting new markets.
I mainly invest in multi family homes and looking to explore another marker where the rent to price ratio make sense.
Would much appreciate to receive some feedback about the MFR market in Salt Lake City - Provo - Orem area.
How is the market doing?
Inventory for Multi Family
days on the market?
Typical Cap rate?
I had a quick look on LoopNet and some of the prices in SLC in par with Denver Colorado.
Thanks In Advance
This depends on what type of multifamily properties you are looking for. It ranges from 4 plexes to 100 plus units.
Generally speaking, the inventory is tight and highly competitive. When MFR's trade, they trade quickly. In place cap rates tend to be in the 5-6% range. However, there are often value add opportunities that the smart investors are taking advantage of.
My focus is property management for small MFR (under 50 units) and SFR. I'm happy to chat more if you want to connect.
Thanks @Jon Neviaser , that's the range im in at the moment up to 30 units.
I'm looking for Value add opportunities, under rented, mismanaged by Mom and Pop investors. happy do cosmetic rehabs. im in the C- low B type properties .
I see you msg me, so will catch you there shortly.
The Utah market looks rather hot, like Colorado.... and the prices per unit are up there too.
What @Jon Neviaser said is pretty spot on. The MFR that stay on the market are usually a little more rough or they are just over priced. Are you ok with 10 units on a piece of land but they are in separate buildings? IE a 4 plex and 2 3plex. I found one of those recently.
Also, Are you investing from NZ?
My focus is on value-add MFH. We acquire using cash to take advantage of properties with high vacancy and needed repairs. I am starting to look in the Salt Lake City and surrounding markets - haven't seen anything yet, but haven't established relationships with a good agent/PM yet. If you have some potential ideas, feel free to message me.
Thanks @Eric Gardiner , Yes, I wouldn't mined split buildings. often its good to give tenants some space, and the Land /lot is larger.
I'm a US citizen investing in the US and NZ. Im used to investing out of area and been doing it over decade in NZ, the key is to have good team and visit the location regularly. (mix business and pleasure)
Please feel free to PM me so we can perhaps catch up on the phone or Skype.