House Hack in SLC vs. Investing Out of State?

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House Hack in SLC vs. Investing Out of State?

Adam Laurenzo
Member since 2018 · 39 posts · 16 votes

Hey folks, I'm looking for some local SLC expertise on starting out with real estate.

A little background: I've been investing most of my money in the stock market the past few years, with a view towards financial independence in the next 10 years or so. I'm quite happy with the results but looking to get into some REI if I can get bigger returns. I've got about $40-50K for that purpose. My partner and I currently rent in Millcreek (essentially a 2+1 house at ~$900/mo.), and aren't really itching to leave that situation without good reason.

Based on some cursory research over the past couple months, I've arrived at two options that interest me:

1.) Buy a duplex or SFR with mother-in-law here in our area and house hack. This seems challenging due to the state of the market, but perhaps not impossible? It would have to be roughly in the Millcreek/Murray/Cottonwood area as I insist on riding my bike to work and spending insane amounts of time in the Cottonwood canyons. I realize there are more economical options in the far west, but I'm trying real hard to not contribute to our inversions.

OR

2.) Keep renting. Buy turnkey properties out of state.

I humbly ask for your input; what would you do with your $50K in my place? Also, if it's option one, I'd love any recommendations for Agents dealing in duplexes/mother in laws in the aforementioned areas.

Thank you all for your time in reading this.

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Jaiden Olsen
Rental Property Investor · Kaysville, UT · Member since 2017 · 141 posts · 120 votes
7y

@Alan Walker is a talented investor in the Salt Lake area and looking to partner with people on buy and hold rental properties. Typically he is looking for individuals willing and able to contribute to the rehab in amounts between $10k and $30k (Alan, correct me if I'm wrong). I think that would be a great place to start.

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  • Jim D.
    Investor · United States · Member since 2015 · 415 posts · 487 votes
    7y

    I house hacked three properties in Millcreek between 2013 and 2016; one regular single family and two with mother in law apartments. Highly recommend it, though I'm sure higher prices have made the numbers tougher now. Send me a PM if you'd like to chat!

    0Reply
  • Jaiden Olsen
    Rental Property Investor · Kaysville, UT · Member since 2017 · 141 posts · 120 votes
    7y

    @Alan Walker is a talented investor in the Salt Lake area and looking to partner with people on buy and hold rental properties. Typically he is looking for individuals willing and able to contribute to the rehab in amounts between $10k and $30k (Alan, correct me if I'm wrong). I think that would be a great place to start.

    1Reply
  • Cody Tanner
    Rental Property Investor · Salt Lake City, UT · Member since 2016 · 17 posts · 4 votes
    7y

    I currently do what you are describing. I own 1 duplex in Millcreek and 1SFR in Holladay. But I can't make the numbers make sense on a new property anymore. I bought mine for 240k and 280k. But if you look at prices now they are 350k-600k+.  So I am personally looking at other options. 

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    7y
    Originally posted by @Adam Laurenzo:

    Hey folks, I'm looking for some local SLC expertise on starting out with real estate.

    A little background: I've been investing most of my money in the stock market the past few years, with a view towards financial independence in the next 10 years or so. I'm quite happy with the results but looking to get into some REI if I can get bigger returns. I've got about $40-50K for that purpose. My partner and I currently rent in Millcreek (essentially a 2+1 house at ~$900/mo.), and aren't really itching to leave that situation without good reason.

    Based on some cursory research over the past couple months, I've arrived at two options that interest me:

    1.) Buy a duplex or SFR with mother-in-law here in our area and house hack. This seems challenging due to the state of the market, but perhaps not impossible? It would have to be roughly in the Millcreek/Murray/Cottonwood area as I insist on riding my bike to work and spending insane amounts of time in the Cottonwood canyons. I realize there are more economical options in the far west, but I'm trying real hard to not contribute to our inversions.

    OR

    2.) Keep renting. Buy turnkey properties out of state.

    I humbly ask for your input; what would you do with your $50K in my place? Also, if it's option one, I'd love any recommendations for Agents dealing in duplexes/mother in laws in the aforementioned areas.

    Thank you all for your time in reading this.

     I've always felt investors should cover home base 1st. You have to pay a mortgage no matter what. Why pay someone else's instead of your own?

    0Reply
  • Adam Laurenzo
    OP
    Member since 2018 · 39 posts · 16 votes
    7y
    Originally posted by @James Wise:
    Originally posted by @Adam Laurenzo:

    Hey folks, I'm looking for some local SLC expertise on starting out with real estate.

    A little background: I've been investing most of my money in the stock market the past few years, with a view towards financial independence in the next 10 years or so. I'm quite happy with the results but looking to get into some REI if I can get bigger returns. I've got about $40-50K for that purpose. My partner and I currently rent in Millcreek (essentially a 2+1 house at ~$900/mo.), and aren't really itching to leave that situation without good reason.

    Based on some cursory research over the past couple months, I've arrived at two options that interest me:

    1.) Buy a duplex or SFR with mother-in-law here in our area and house hack. This seems challenging due to the state of the market, but perhaps not impossible? It would have to be roughly in the Millcreek/Murray/Cottonwood area as I insist on riding my bike to work and spending insane amounts of time in the Cottonwood canyons. I realize there are more economical options in the far west, but I'm trying real hard to not contribute to our inversions.

    OR

    2.) Keep renting. Buy turnkey properties out of state.

    I humbly ask for your input; what would you do with your $50K in my place? Also, if it's option one, I'd love any recommendations for Agents dealing in duplexes/mother in laws in the aforementioned areas.

    Thank you all for your time in reading this.

     I've always felt investors should cover home base 1st. You have to pay a mortgage no matter what. Why pay someone else's instead of your own?

    That sounds natural to me too, but at any cost? Is there a point where I'm being irresponsible?

    0Reply
  • Adam Laurenzo
    OP
    Member since 2018 · 39 posts · 16 votes
    7y

    @Cody Tanner how long ago was that? Are you looking out of state now?

    @James Marshall oh how I wish I had been here a few years ago. The house across the street from me just went up for 399.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    7y
    Originally posted by @Adam Laurenzo:
    Originally posted by @James Wise:
    Originally posted by @Adam Laurenzo:

    Hey folks, I'm looking for some local SLC expertise on starting out with real estate.

    A little background: I've been investing most of my money in the stock market the past few years, with a view towards financial independence in the next 10 years or so. I'm quite happy with the results but looking to get into some REI if I can get bigger returns. I've got about $40-50K for that purpose. My partner and I currently rent in Millcreek (essentially a 2+1 house at ~$900/mo.), and aren't really itching to leave that situation without good reason.

    Based on some cursory research over the past couple months, I've arrived at two options that interest me:

    1.) Buy a duplex or SFR with mother-in-law here in our area and house hack. This seems challenging due to the state of the market, but perhaps not impossible? It would have to be roughly in the Millcreek/Murray/Cottonwood area as I insist on riding my bike to work and spending insane amounts of time in the Cottonwood canyons. I realize there are more economical options in the far west, but I'm trying real hard to not contribute to our inversions.

    OR

    2.) Keep renting. Buy turnkey properties out of state.

    I humbly ask for your input; what would you do with your $50K in my place? Also, if it's option one, I'd love any recommendations for Agents dealing in duplexes/mother in laws in the aforementioned areas.

    Thank you all for your time in reading this.

     I've always felt investors should cover home base 1st. You have to pay a mortgage no matter what. Why pay someone else's instead of your own?

    That sounds natural to me too, but at any cost? Is there a point where I'm being irresponsible?

     You're only going to be able to get a loan for so much. So in a nutshell yes, there is a point where you are being irresponsible & the bank is going to tell you what it is.

    0Reply
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