Utah County Rental Market

Investor · Utah County Area · Member since 2020 · 11 posts · 4 votes

We are looking at investing in our first "buy and hold" rental property in Utah County. Our thoughts are a 3-4 bedroom single family home. Originally we were primarily looking at Lehi, Springville or Mapleton, but I am curious about potential growth further south in areas like Payson or Salem. We are leaning towards new construction due to lower repair costs in the first years and the fact that the community seems to value newer over older:)

I would love any insight local investors might have--particularly in the current climate.

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Duane Richards

Cedar Hills, UT · Member since 2019 · 68 posts · 43 votes

@Kristyn Morgan, welcome to the Utah market. My wife and I are newbies, and have gone from 0 to 4 SFR's this year in Utah County. We put money down on a new townhome in Sept 2019 (after doing a ton of reading on BP, using rental calculators, etc.), supposed to close in March 2020, but COVID pushed it to May. With the quarantine, we worried about the whole thing and probably listed our unit at too low of a rental price point. However, because of the area (Highland), we had tenants lined up for 45 days waiting to move in. The area was so popular, we put earnest money down on a second one (being built) from the builder in April, which just closed in September. Also had a renter lined up for 30 days waiting to move in.

We are about to close on two more (invested in an OZ at the end of 2019) in a different area (Provo), all while COVID is in full swing in Utah. We've had tenants lined up on these as well for almost 30 days now. If the seller would just get their stuff in order, we would have closed in July LOL!

Would love to connect! Good luck with everything and your continued REI successes!

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Chris H.
Rental Property Investor · Orem, UT · Member since 2018 · 6 posts · 4 votes
6y
@Kristyn Morgan I think you'll find a good rental market just about anywhere in Utah County. You'll probably see slightly lower rents the further south you go, however.
As far as new builds vs older houses, I don't think renters necessarily care about having a new house. They just want some basic upgrades. I think you'll see lower returns on a new builds vs a rehabbed older house. YMMV.
1 Reply
Kristyn Morgan
OP
Investor · Utah County Area · Member since 2020 · 11 posts · 4 votes
6y
Thank you so much. This really helps!
1 Reply
David Li
Real Estate Investor · South Jordan, UT · Member since 2017 · 86 posts · 34 votes
6y
@Kristyn Morgan
Utah has been great on appreciation for the last few years. We have properties all over the place In Utah but I think Draper and South Jordan has the best appreciation
1 Reply
Kristyn Morgan
OP
Investor · Utah County Area · Member since 2020 · 11 posts · 4 votes
6y
What are your thoughts on the rental market there?
0 Reply
David Li
Real Estate Investor · South Jordan, UT · Member since 2017 · 86 posts · 34 votes
6y
@Kristyn Morgan
Cash flow sucks. But good area to house hack and our properties has gone up in value about 7% year after year.
0 Reply
Sakib J.
Investor · Los Angeles, CA · Member since 2020 · 154 posts · 32 votes
6y
@David Li are you able to beat the 1% rule with 20% down? If so, I would be very keen to hear your suggestions
0 Reply
David Li
Real Estate Investor · South Jordan, UT · Member since 2017 · 86 posts · 34 votes
6y
@Sakib Jamal
Not on mls. The cheapest I got is townhouse for 225k 3b3b renting for 1695
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Sakib J.
Investor · Los Angeles, CA · Member since 2020 · 154 posts · 32 votes
6y
@David Li
Ouch! Assuming you were aiming for appreciation??
0 Reply
David Li
Real Estate Investor · South Jordan, UT · Member since 2017 · 86 posts · 34 votes
6y
@Sakib Jamal
It was brand new. So no maintenance and no vacancy for the past 4 years
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Sakib J.
Investor · Los Angeles, CA · Member since 2020 · 154 posts · 32 votes
6y
@David Li
Great. Best of luck.
Lets stay connected and exchange ideas.. if u like.
Are you solely investing in Utah?
Numbers are not making sense anywhere as an OOS investor. What are you seeing?
0 Reply
David Li
Real Estate Investor · South Jordan, UT · Member since 2017 · 86 posts · 34 votes
6y
@Sakib Jamal
It really depends on ur goal. For me I’m really busy at work and want something that’s easy to manage and low maintenance, so this year I house hacked a place at daybreak to save on my mortgage and did a 1031 exchange for a 4plex now is cash flowing 2000$ since I have decent amount of equity in it.
I heard Columbus is a good cash flowing city and I heard investor hit close to 3% rule in Syracuse NY
1 Reply
Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
6y
Originally posted by @David Li:
@Sakib Jamal
It really depends on ur goal. For me I’m really busy at work and want something that’s easy to manage and low maintenance, so this year I house hacked a place at daybreak to save on my mortgage and did a 1031 exchange for a 4plex now is cash flowing 2000$ since I have decent amount of equity in it.
I heard Columbus is a good cash flowing city and I heard investor hit close to 3% rule in Syracuse NY

Which Columbus?

[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
Reafco512 Reviews
Website View Page
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Zeke Liston
Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
6y
Hi @Sakib J., where do numbers make sense for you?
0 Reply
David Li
Real Estate Investor · South Jordan, UT · Member since 2017 · 86 posts · 34 votes
6y
@Remington Lyman
Ohio
1 Reply
Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
6y
Originally posted by @David Li:
@Remington Lyman
Ohio

Great city for cashflow and appreciation

[email protected]786-494-6766
Section 8 Launch52 Reviews
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Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
6y
Originally posted by @David Li:
@Remington Lyman
Ohio

Love that place. I have 27 units in Columbus, Ohio
[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
Reafco512 Reviews
Website View Page
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David Li
Real Estate Investor · South Jordan, UT · Member since 2017 · 86 posts · 34 votes
6y
@Remington Lyman
Awesome! What’s ur average cash flow?
1 Reply
Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
6y
Originally posted by @David Li:
@Remington Lyman
Awesome! What’s ur average cash flow?

negative a lot probably
[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
Reafco512 Reviews
Website View Page
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Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
6y
Originally posted by @David Li:
@Remington Lyman
Awesome! What’s ur average cash flow?

I fourth Columbus as a great rental market! My strategy has been to BRRRR and it works great now that everything is appreciating! It makes the ARV and refinance better, however sourcing good value add deals has been like finding a needle in a hat stack, but still possible! Plus cash flow is killer with all the big industry moving in!

1 Reply
Sakib J.
Investor · Los Angeles, CA · Member since 2020 · 154 posts · 32 votes
6y
@Zeke Liston
Not making sense anywhere... would love to hear from BP friends where to look ??
1 Reply
Sakib J.
Investor · Los Angeles, CA · Member since 2020 · 154 posts · 32 votes
6y
@Steven Wilson
What zip codes are you focusing in Columbus?
SFR or duplexes??
0 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
6y
Originally posted by @Sakib J.:
@Steven Wilson
What zip codes are you focusing in Columbus?
SFR or duplexes??

I have a duplex on campus and I’m coming to close on a second on campus next week. The cash flow can be insane if done right, key is to pick your tenants well, make the place nice enough to attract mice enough tenants.
I also have a 3 unit in Hungarian Village. It used to be a place for crack heads and hookers, but property taxes have been increasing and the gentrification process has made the area the next up and coming!
0 Reply
Ben Hartman
Realtor · UT · Member since 2019 · 11 posts · 6 votes
6y
Originally posted by @Kristyn Morgan:
We are looking at investing in our first "buy and hold" rental property in Utah County. Our thoughts are a 3-4 bedroom single family home. Originally we were primarily looking at Lehi, Springville or Mapleton, but I am curious about potential growth further south in areas like Payson or Salem. We are leaning towards new construction due to lower repair costs in the first years and the fact that the community seems to value newer over older:)
I would love any insight local investors might have--particularly in the current climate.

How much were you hoping to invest in a new construction SFH? Have you thought about new construction multi-family? You get all the benefits of buying new that you mentioned above while also mitigating vacancy risk by having multiple tenants.

0 Reply
Duane Richards
Cedar Hills, UT · Member since 2019 · 68 posts · 43 votes
6y
@Kristyn Morgan, welcome to the Utah market. My wife and I are newbies, and have gone from 0 to 4 SFR's this year in Utah County. We put money down on a new townhome in Sept 2019 (after doing a ton of reading on BP, using rental calculators, etc.), supposed to close in March 2020, but COVID pushed it to May. With the quarantine, we worried about the whole thing and probably listed our unit at too low of a rental price point. However, because of the area (Highland), we had tenants lined up for 45 days waiting to move in. The area was so popular, we put earnest money down on a second one (being built) from the builder in April, which just closed in September. Also had a renter lined up for 30 days waiting to move in.

We are about to close on two more (invested in an OZ at the end of 2019) in a different area (Provo), all while COVID is in full swing in Utah. We've had tenants lined up on these as well for almost 30 days now. If the seller would just get their stuff in order, we would have closed in July LOL!

Would love to connect! Good luck with everything and your continued REI successes!

2 Reply
Kristyn Morgan
OP
Investor · Utah County Area · Member since 2020 · 11 posts · 4 votes
6y
Thank you! This is great to hear! We definitely feel like Utah County is where we want to be. I was there last week and saw tons of properties with our resistor Abd even put an offer on one. However the seller kept asking for addendums, was being less than honest and so we backed out. However we are hoping to purchase soon. That’s great to hear about your experience and lines up with what we are seeing/hearing.
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