Hey guys, few years into investing and wanting to move to bigger faster market. I'm looking for any helpful info from current Salt Lake Investors about the market.
1) Are investors buying a lot of rental houses in Salt Lake with median price at 365,000?
2) What areas of town are most popular for buying rentals?
3) Which areas of town are safe and unsafe to market to and look to buy property?
4) Are guys kicking butt in wholesaling in Salt Lake?
Any and all info is appreciated.
Hi Kully, I'll provide what info I can but someone more tapped into real estate is probably going to have better information for you.
1) I believe the boom happening in Utah is mostly related to people moving in state and purchasing homes. I don't believe the market rent prices are high enough to cover the median household price. You can't get 1% or 3,650 a month in rent for a 365k house. More like .5 percent I believe.
2) Areas that are going to be stronger for rental I would believe are going to be lower pricing (although that's becoming rare all over). Areas up near Ogden and Hill Air Force base always seem to have a fairly strong rental market, but I don't know where you should and shouldn't be. Midvale, West Valley, South Salt Lake, anything close to Trax Lines (Mass Transit) are going to be better for renting. Again, a realtor who specializes is going to have much better information then I am. Lehi/Saratoga Springs is booming is well, but probably closer to 20% gains in the last year or two.
3) I'd recommend you look at areavibes.com or trulia.com/local for safety information. Rose park, West Valley, Kearns, Magna in Salt Lake County are places I would avoid personally.
4) Can't speak to much about this however I know there's some local REIA meetups centered around wholesaling going on so they must be doing alright :)
Sorry for my limited knowledge but hopefully that gives you some insight.
1- No most investors are buying the cheaper homes than the average price point. The average price point is normal homeowners. You should look at KSL. com in their rental section. That will give you an idea of what rental rates are.
2- It's more affordable to buy on the west side of I15 but you also have lower rental rates over there. If you stay east of state street the rental rates get better but the purchase price goes up too.
3- Most areas are safe. I'm not a fan of some areas but I'd rather not put that on a public forum as I am a Realtor.
4- There are a lot of wholesalers in Utah. How well they do I do not know. It's one of those things everyone thinks is easy money when it really is a lot of work. I get homes from 3 or 4 and rarely do I find a good deal in the bunch but I'm sure the really good deals are sold before they hit the email list.
The most interesting thing about SLC right not is we have more people looking for houses to live in that there are homes available. This is the first time in 40 years that has happened. This is pushing up values and rent rates at a crazy rate. Average appreciation is 3-4% a year so being 8-10% is crazy and will have to stop eventually but as long as income and jobs keep up things keep getting pushed.
I second what Becca Summers says. I've bought two rentals this year, both under 215, both on the west side of the valley. I'm in the middle of two flips and one is SLC and one in West Valley. I'm a realtor also. The MLS is hard for investor deals right now, mostly because, as Becca mentioned, there aren't enough homes for the people moving here so owner-occupy buyers are more emotionally attached and will to spend more than an investor typically is. I attend all the Real Estate Investors Meetings I can and try to meet more wholesalers. Not every deal they'll have is a good deal for me, but its the only place I've been finding deals at all.
Hey guys, really appreciate your replies. This gives me a little bit of simple information to build on. We are finishing up on a few deals in our market now and heading that way early October.
I am a new investor in the area. I made my first purchase in Layton almost a year ago. I found overall that it was hard to find anything that could beat a 1% return on the mls. Found my purchase by happening to drive by an fsbo and got it for well under market value. Again I am new so take this with a grain of salt. We have a lot of older homes here and I have noticed a good number of homes that look like they need some rehab and or updating. May be a good opportunity to get in for under market if you are willing to put in some work on them. Open to feedback on this from some more experienced investors in the area.