San Jose, CA · Member since 2013 · 17 posts · 6 votes
Thinking of house hacking a new build by 700w 7200s in the Midvale/Murray area. It has a new shopping center, top golf, a golf course, and tech companies. Do you think this is a good place for a 2bd/1bath basement rental? I’m fairly new to Utah, so I’m curious what locals think of this area.
Rental Property Investor · Salt Lake City, UT · Member since 2016 · 7 posts · 3 votes
7y
I don't know a ton about that specific part of town so I will let others chime in but I will say that your logic seems sound. As with any new build in an area experiencing growth, you're probably not making your money on the "buy". I would suggest that you have a plan to hold that property at least for a few years. A buyer would not want to pay the same for a 1-5 year old place as they would to build new and get to make all of the decisions and have something be new. If you're planning on househacking that means make sure that you like the area and can see yourself there for at least a few years.
Rental Property Investor · Salt Lake City, UT · Member since 2016 · 7 posts · 3 votes
7y
I don't know a ton about that specific part of town so I will let others chime in but I will say that your logic seems sound. As with any new build in an area experiencing growth, you're probably not making your money on the "buy". I would suggest that you have a plan to hold that property at least for a few years. A buyer would not want to pay the same for a 1-5 year old place as they would to build new and get to make all of the decisions and have something be new. If you're planning on househacking that means make sure that you like the area and can see yourself there for at least a few years.
San Jose, CA · Member since 2013 · 17 posts · 6 votes
7y
Thanks for your reply! I definitely plan to live there for at least 10 years. My wife is tired of house hacking our 100 year old house which we are turning into a rental. Hypothetically If I was to sell in a few years, at that point there would not be any land left for new builds, right? Therefore any buyer or renter that wants to live in a brand new SF would have to settle for newish or go live in a townhome
San Jose, CA · Member since 2013 · 17 posts · 6 votes
7y
Thanks for your reply! I definitely plan to live there for at least 10 years. My wife is tired of house hacking our 100 year old house which we are turning into a rental. Hypothetically If I was to sell in a few years, at that point there would not be any land left for new builds, right? Therefore any buyer or renter that wants to live in a brand new SF would have to settle for newish or go live in a townhome
Lender · Salt Lake City · Member since 2019 · 13 posts · 7 votes
7y
Charlie,
Make sure the house is approved to rent out the basement. That address is in Midvale City. In Midvale City (and most cities in the salt lake area) in order to rent out your basement legally you must have either a legal duplex or a conditional use permit to allow it to be rented. Otherwise you are in violation of city zoning and they can place a lien on your home for non-compliance. Only certain areas in each city are zoned with a duplex overlay to allow it to be operated as a duplex. Without the duplex overlay, you are very unlikely to obtain permission for a conditional use permit. In a duplex overlay area to obtain a conditional use permit the second unit must meet a variety of requirements including being separately metered (unless you are going to pay all utilities) and it must have a 2 hour firewall between the units. There may be other requirements, but those are the two I know about immediately with regards to Midvale City.
I would strongly recommend you check into the zoning code on this proposal. If you have questions, call the Midvale City Planner, Lesley Burns. I am forbiden from posting her number, but if you search her name at midvalecity.org you will find it pretty easily. I have always found her to be very helpful.
San Jose, CA · Member since 2013 · 17 posts · 6 votes
7y
Beckie, The property is actually a few blocks from the location I listed. It’s in the Murray zoning, but inside Midvale City. So I guess I lucked out. I called the city planner and he said Murray encourages people to rent out ADUs due to the shortage in housing. All I would need to do is pay the one time fee for a conditional use permit $300 and the annual rental license $100. Seemed too good to be true! I also called the Salt Lake City planning office and they were short and rude. Glad I choose Murray...
Lender · Salt Lake City · Member since 2019 · 13 posts · 7 votes
7y
That's awesome! Yeah, Midvale's conditional use permit fee is about $300 but it's the inspection that kills you with various costs to meet codes of a duplex including the firewall, which can be costly to retrofit if the house is already built.
Murray does sound ideal. I will look into Murray more in the future for my personal investing. Thanks!
San Jose, CA · Member since 2013 · 17 posts · 6 votes
7y
New builds are typically always up to the latest code according to the city planner. He said that would not be an issue whatsoever. A few minor fixes like having interconnected fire alarms and an additional heating source would make it 100% legal if you plan to close off the wall to make it an actually ADU. Keep in mind it's a lot easier to have "roommates"