Success with BRRRR in Ogden Utah?

Question

Are there any BP members out here in Ogden or nearby finding success doing BRRRR's? I'd love to find out where you're seeing are the best areas.

Doug Cary · Answer

I found a deal in Ogden. I paid cash through an equity line 2 weeks ago at $161,000.  It will need about $25,000 which is a little fix up, paint, carpet, and a whole new yard (this is the biggest expense).  I'm going to refinance before the yard goes in and be in it under $170,000 and it should appraise around at $200,000 or more.  I'll let you all know how that goes.

Ryan Bergevin · Answer

In 2018 I sold 2 SFRs in SLC and used the proceeds to do a 1031 exchange into 5 MF properties in Ogden.  I went to Ogden since even in 2018 it was almost impossible to find a deal in SLC that cash flowed. The properties I bought in Ogden were all older and needed work, some more than others.  This was before I started following Bigger Pockets and certainly before I heard about BRRRR.  With all the work I had to do on the properties I didn't cash flow until earlier this year, about 1.5 years after buying the properties.  They're cash flowing now but since I almost bit off more than I could chew I'm going to catch my breath and enjoy the positive cash flow before I jump into other properties.  I've been keeping an eye on investment properties in Ogden and it seems that purchase prices have gone up quite a bit, to the point where it would be difficult to find a deal that cash flows (even without a lot of repair expenses.)  I'm thinking I'll need to find other areas to invest.

Jaiden Olsen · Answer

I've run the numbers to BRRRR in the Weber and Davis County area, and in most cases, the biggest key to making it work is to BUY LOW. If you don't buy low, it can't work. I think the key is to buy off market deals and get really good deals on them. I'd love to know if there is anyone finding success with this strategy in Utah.

William Hochstedler · Answer

One of those R's is rent.  What are you getting for rent in a $200K+ property?  I find that to be the problem.  Even if I can force the equity, I don't gain much cash-flow by buying distressed properties in this price range with the BRRR strategy.

I do these in Ogden whenever possible and have a few of them.  It's very very very hard to find properties that work in a way which allow you to get all your cash back.  You still see a tiny percentage from wholesalers that come close.  But it's slim pickings indeed.

Jonathan Mueller · Answer

I had a client that bought a home in North Ogden in July for 192k, put 11k into the house, and sold for 255k in March. Could have done a BBBR, but it was hard to find renters at a price that cash flowed. Was a better flip candidate.

Jordan Meyer · Answer

@Doug Cary How did this one end?I did a modified BRRR with one in North Ogden last year.  I bought from an investor friend who wanted a headache gone (with the tenant) so he sold it to me for about 15% below market value (via all inclusive trust deed). Then I refi'd at the appraised value with a lender who doesn't require seasoning on title, and it ended up being only $5k or so out of pocket.

Doug Cary · Answer

Yes it's a single family home.  I'm getting away from self managing and I have a property manager now.

Jason Curry · Answer

Doug, is your deal a single family? What's your plan to manage the property?

Brandon C.J. Grimes · Answer

I don’t @JB Cunningham ! However Ogden use to always have this reputation. Still does, however they’ve done a pretty good job the last decade with pushing out the bad areas. There are still some but not as much as before. I went to Weber State University in Ogden for a few years and back then it was pretty bad. Going now it’s night and day. If I network with Wholesalers in the area I’ll definitely let you know!

JB Cunningham · Answer

Anyone connected with a good wholesaler in the area.  My biggest apprehension is crime,  not knowing the neighborhoods really well Ogden is the type of town you don't want to make a wrong turn in - figuratively and sometimes otherwise!  One renter even using Meth in your property can cost Thousands in mitigation and set you back on cashflow.

All the good below market properties I'm seeing are in the bad neighborhoods.

Success with BRRRR in Ogden Utah?

Most Popular Reply