I live in Northern Utah and I have been looking and looking in Davis and Salt Lake Counties and haven't found a ton of deals, everything seems vastly over-priced. I have started to look more up north towards Ogden, has anybody had any luck up there? There are some cheap houses but some of them aren't in the best of areas. I would love to hear what experience/success people have had up there or in any area that isn't "the best" of areas. Thanks
what are you looking for? SFH? Dup/tri/quad? small apartment? If the wholesalers are able to find deals, the deals are out there. What channel have you use to look for deals? Be prepare to pay for retail pricing if you are looking on MLS.
I'm very bullish on Ogden and think it's one of the best markets in the country.
Many Utahns stigmatize it because of its turbulent history and most people outside of Utah have never heard of it.
I'm buying properties there all the time. There are definitely differences block to block.
Most of the deals are in poor physical shape. So that's another consideration in this market.
@William Hochstedler what's your opinion on the "scary" parts of Ogden. There was a guy who posted earlier this month about his property in West Ogden constantly being broken into. How do you deal with those type of issues?
Vacant properties can be a problem in Ogden. A lot of squatters. We find that that's more of the issue than vandalism or theft. Don't let properties get run down and look vacant. They will become targets for this everywhere in the city.
Utah legislature removed protections from squatters and we can now have them removed as trespassers where previously they were more like tenants at will.
I don't own any properties in West Ogden. But some of my colleagues have houses out there that top their portfolio in terms of performance. West Ogden is among the most heavily stigmatized neighborhoods in the city, but is not nearly as bad as people think.
Ogden's not scary, its amazing how it gets this label, ive never had an issue in ogden. in any city that you have a vacant property you have potential issues. If you network in the neighborhoods, you usually find some retired folks that still live there, and like to be your secret eyes in the neighborhood.
William. Should FIG be considering a new location in Ogden for 2017 projects? If so, would you be willing to help us out? Thanks!
What is the demand for newer 1500-1700 sq ft Townhomes with garages? Where does that tenant work, what do they make, what is vacancy rate?
@Joe Au I am looking mostly for SFH to flip and multifamily units to possibly house hack or just rent them all out. I have been looking a lot on the MLS, my dad is an agent so I have that access and then a lot of other real estate websites in Utah. It seems like there are deals out there, I'll have to keep my eyes opened.
@William Hochstedler what kind of properties are you buying mostly in Ogden? Do you get these deals yourself via mail marketing or just on the MLS?
local wholesaler would be another source for flipping.
I moved to Ogden 4 years ago because of it's great potential & soul. Although there are still challenges (as with most older towns) things have been steadily improving for many years now - most residents love the place and are excited about the many amenities & general direction of the area.
I would love to find a local wholesaler or other sources of good deals - any suggestions on where to look? We would love to buy some rentals (SFR, 2,3,4-plex)
I've been thinking about your model up here. There's definitely a price point sensitivity that may be making your townhome model so effective down there that would have to be compared to available options up here. There's a lot of stock of 10-25 year old detached tri-levels in places like Roy in that size. These are selling briskly at $105-125/sf and tend to rent for under $1250/mo. There's lots of military personnel and production workers. Vacancies are very low, but it's not driving up rents much because of income limitations.
Check out Meadows at Riverbend. This is a downtown development that may be a bit ahead of its time. We should catch up.
For buy-and-holds, I love the under $100K price point. Small, detached SFR that I can rent for under $1000. I like to keep my flips under $175K (selling price). I'm finding very few deals on the MLS and they tend to be highly competitive. I don't personally direct mail, but work with a lot of people who do. I buy from wholesalers, at trustee sales. Other agents call me with problem listings. I get leads from tenants, property managers. Property owners come to me with their headaches. There's no one-size-fits-all. Just a lot of networks and keeping my eyes open.
Hi @William Hochstedler , there is a 20 unit apartment for sale at 560 27th st at Odgen, do you know that neighborhood?
Yes. It's pretty marginal. You should be at over 7% cap rate in this area. Probably higher. I've seen buildings in the last year for over 8% in not awful condition.
I have access to numbers on several buildings in that neighborhood.
PM me for details.
@William Hochstedler I know this is an old thread, but if you or anyone else is still active on BP I'm curious if you'd be able to give an update on the Ogden area as far as opportunities / future growth. I'm new on BP and live in Davis County. So far I've been hunting for a first investment (probably a simple SFH for long term rental) in my backyard, but not finding much in Davis County. Any insights would be awesome! Also trying to start networking to find some active / reputable wholesalers in the area.
The piece of junk 2 bedroom detached home that sold for $80K when this thread started is now over $125K. This has happened in a lot of Utah markets over the past two years. But the low end of the Ogden market received a serious bump. Of course, this could be attributable to the fact that Ogden (still) has the least expensive real estate on the Wasatch front including Brigham City.
Moreover, the general trends are as predicted. A robust farmer's market, a new artists district, several new niche employers building down on Exchange St, a micro micro brewery, a proposed $400M expansion of the Historic District to the south of 25th St, and a huge mixed-use development in the works in East Central where the old Rite Aid was.
Sounds great, but it's still planet Ogden. Expect six months to 2 years for stabilization with certain properties in certain neighborhoods. There are still a dozen houses per block that need a lot of work. More than a half century of deferred maintenance doesn't recover overnight.
I think there's still a ton of upside, but it's going to be the hardest dollar you can make. Small price points. Deeply deferred maintenance. Entrenched professional squatters. Etc.
Definitely come to our REIA (NUREIA.org). There you can start networking with all sorts of folks working in this market.
I can't thank you enough for your reply, you're the first to get back to me on a post on BiggerPockets, so thank you! I couldn't be any newer, I'm only a few days into looking at the Ogden market so this was very helpful. I'm getting ready to go look at a couple of duplexes for sale on 27th St., so we'll see how that goes. I'll definitely look forward to getting out to the REIA meetings. Thanks again!
@Ben W. I get emails from quite a few of the wholesalers operating in Northern UT. I don't buy anything they send out but I like to look at it to see what they are offering.
Some of them are Salt Lake Wholesale Properties saltlakewholesaleproperties.com (they just put out a deal in Ogden today), @Jeff Rappaport who's company is called Jupiter Property Solutions I believe...Jeff runs a wholesaler meet up in the salt lake area and his deals seem to be really good at first glance. I have spoken to him and his partner/wife Rebecca Jensen quite a bit and they are really good people. A few more are saltlakewholesalehomes.com, utahhousebuyers, utahsellnow, Boothe Home Buyers, creationutah.com named Wholesale Utah Homes I believe, Prince Realty-John Prince is the main guy here...I've talked to him a few times and seems to be a good dude and a lot of his deals that I see seem to have a good amount of meat on the bone.
Anyway, that's a lot more than I thought! I purposefully got on most of these people's buyer's lists but I think I ended up on a bunch of them when a one of them punched out a deal and didn't hide the recipients on the email haha...I'm not complaining! Most of them put out deals from Ogden to Provo and even other places. You can get on their lists by google-ing them and signing up through the websites or just call them and tell them you want to be added.
The main thing with the the deals that any wholesaler puts out or any deal really is that you have to make sure you really know the area and you come to your own determination of ARV and repair costs. In other words...due diligence.
@Ryan E. Wow, this is great! Thank you for taking the time to share the information. You guys are awesome! Let the hunt for that first property begin.
Ben, I can't speak for any of the REIA's but I've heard they are extremely valuable. I'm new to BP as well but I've been to the meetup in Sandy, SLC, twice and it was great. I believe it is the first Thursday of every month at Club 90. It is a free meetup and very worthwhile. Hope to see you there.
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