Looking for Owner-Occupant Deal Finding Advice or People

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Looking for Owner-Occupant Deal Finding Advice or People

Peter Petwr
Member since 2019 · 13 posts · 30 votes

I live in Tooele, Utah the deals are great for housing in Tooele probably for flipping. Cash-flowing seems a bit harder. Maybe Airbnb?

Basically I'm not having a fun time looking for homes on the MLS the inventory is non-existent and the existing deals get picked up over-priced within a few days and aren't even that great.

Anyone in Tooele, West Valley, Salt Lake, Sugarhouse, Ogden, etc. areas have any tips for finding deals?
Could you educate me on what a good deal looks like in Utah? I feel like I'm analyzing numbers and kneading them till they work. 

Do you contact people by mail, finding distressed buyers would make the most sense, there's plenty of pre-foreclosures.

I'd probably shoot for a BRRRR, most likely a buy and hold for 5 years flip while renting, I'll be living in the property since I only have FHA(3.5% down) / Rural financing (0% down) / Home Ready (3% down) loans

I'm clearly very hesitant about the Utah market because it's so overpriced, but people are still buying so maybe I just don't know something.

Side Note* I was looking for a rundown shabby home in the sugarhouse / U of U area because I rented in that area for a period of time and Google Fiber is honestly amazing and Comcast internet sucks. :)

I use rental property calc for a lot of my calculations should I only care of the IRR if the cash-flow is Negative? or should I only go for positive cash-flowing units.

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Cherie Orellana
Salt Lake City, UT · Member since 2018 · 219 posts · 182 votes
6y

@Peter Petwr 

Being a buyer in Salt Lake and surrounding areas can be frustrating right now.  I think patience is key.  Are you working with a realtor?  If so, I would suggest you have them search expired listings of homes that meet your criteria and reach out to them to see if they are still interested in selling. 
Another option is researching homes on list source or another provider to locate properties that meet your criteria and reaching out to them directly. Driving for dollars is always a good way to find off market deals as well.  I would get on as many wholesalers buyer list as you can and watch those. Often you could get transactional funding on a buy and hold or some wholesales offer short term seller financing.  Maybe even negotiate time to get a traditional loan depending on the circumstances. 

I Am personally still buying and not concerned about the booming market. I expect another 5 years of steady growth. As long as you have a plan A, B, C on everything, I would be comfortable buying in any market. I think a lot of the people waiting for some huge market correction in Utah will be kicking themselves in a few years wishing they made a move sooner. 

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  • Cherie Orellana
    Salt Lake City, UT · Member since 2018 · 219 posts · 182 votes
    6y

    @Peter Petwr 

    Being a buyer in Salt Lake and surrounding areas can be frustrating right now.  I think patience is key.  Are you working with a realtor?  If so, I would suggest you have them search expired listings of homes that meet your criteria and reach out to them to see if they are still interested in selling. 
    Another option is researching homes on list source or another provider to locate properties that meet your criteria and reaching out to them directly. Driving for dollars is always a good way to find off market deals as well.  I would get on as many wholesalers buyer list as you can and watch those. Often you could get transactional funding on a buy and hold or some wholesales offer short term seller financing.  Maybe even negotiate time to get a traditional loan depending on the circumstances. 

    I Am personally still buying and not concerned about the booming market. I expect another 5 years of steady growth. As long as you have a plan A, B, C on everything, I would be comfortable buying in any market. I think a lot of the people waiting for some huge market correction in Utah will be kicking themselves in a few years wishing they made a move sooner. 

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  • Alan Walker
    Real Estate Agent · Salt Lake City, UT · Member since 2016 · 214 posts · 154 votes
    6y

    I agree with Cherie wholeheartedly.  I'm working with a ton of homebuyers that are focusing on getting single-family homes with a mother-in-law apartment to help supplement the mortgage payment.  Typically these homes are going for single-family residential pricing even with the mother-in-law versus the premium you pay when something is labeled a duplex.  I've had clients "waiting for the market to cool down" and they've been waiting for over 2 years, meanwhile, had they bought at what they thought was overpriced then, they would be experiencing 10-12% appreciation on their homes.  

    I'm not proposing anyone buys strictly for appreciation, but many of us are short-sighted on the overall value of a home versus the purchase price.  When you take appreciation, depreciation and debt-paydown into account, buying right now still makes sense.  

    What I tell my clients is that right now, "finding the deal" means you actually get to purchase the home. It's all in how you look at it.

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  • Peter Rodriguez
    Member since 2019 · 19 posts · 12 votes
    6y

    Thanks for the responses @Cherie Orellana @Alan Walker

    I'll definitely be looking for expired listings and mislabeled listings.

    Driving for Dollars is when you go around putting letters in people's mail asking to buy their houses right?

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