Check Out Our 5-Year Appreciation

7 Replies

Just another reason I love real estate. This data was pulled directly from the Utah MLS. I included shots for all of Utah, Utah County, and Salt Lake County. I don't know where else you can get this kind of return on your money. Maybe Bitcoin? Lol.

Do y'all buy and hold or flip here in Utah? I have been surprised by how inexpensive the rental market is compared to the sales market -even tho there are limited rentals. I live in East Sandy and it seems it would be tough even to pay a mortgage with the rental prices- looks like $600-$800K homes rent for about $3000. Curious as to what you do here? Thanks, Cj

@Cj Powderhorn , This will vary depending on where you are in the valley and on the type of property. Its not tough to have your mortgage covered or even cash flow if you have anything more than a SFR. As far as Sandy goes, you might be making less than your mortgage, but with what @Alan Walker is showing here, you're more than making up for that monthly loss in appreciation.

@Cj Powderhorn - I've found the same. Just starting out on our REI journey, my wife and I are moving into a fixer-upper and back-renting our previous home. Had we not bought it 3 years ago, put some work into it, and refinanced just now, we wouldn't really be able to cover CapEx and other soft costs, though the property would still have cashflowed.
Our strategy is forming into a longer-term buy-and-hold, then refi-and-rent strategy (not a rapid BRRRR).

Just excited to be taking our next big step! It's been 7 months since we committed to making it happen and are just now under contract for this fixer-upper! It'll be a live-in rehab. We'll plan on building a MIL to offset a bit of the mortgage while we live there for an unknown amount of time. It may or may not make sense to rent this second house - might become a flip or a long-term residence.

I used to do that with my MIL as well -- initially I had it finished with a bathroom (has 2 bedrooms) and then a full (but small) kitchen I was able to rent it for $1200 per month.  Pretty interesting since I believe my entire house wouldn't rent for more than $3000! I think having a fenced yard and the fact that I don't have any dogs was very appealing to some of the renters I had here - and I had fun being an Aunty for the dogs!  I've looked around a bit here for a MF also. I do have some long term concerns about the air quality here - especially as I've heard predictions the Valley population will triple over the next 20(I think) years!  Do you think Lehi and Utah County are overbuilt on the commercial side?

@Cj Powderhorn Hmm.. Not my wheelhouse, really. It will be interesting to see how things go. The vast majority of companies leasing offices along that corridor are tech/e-commerce and likely have been able to effectively transition to remote working, recently. Could pull the rug out from under commercial development projects in the immediate area. 

Residential - it seems that expansion south and west continue as strong as ever and the remote-working situation will only encourage that. Could see some flattening of home values in the heart of the valley as it becomes less important to be close to the office. Probably a key factor there is the expansion of goods/services locations, which will shore up a bit of commercial, but not in the same sector.