First Time Home Buyer

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Andy Okamoto
  • Investor
  • Salt Lake City, UT
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Analysis Paralysis - 20 yr old first time home buyer

Andy Okamoto
  • Investor
  • Salt Lake City, UT
Posted May 28 2022, 11:21

Hello BP community! My name is Andy and I'm looking to purchase my first property in the Salt Lake valley. I am prequalified for 650k with my parents as cosigners. I'm looking to house hack a duplex or single-family home and rent out by room. When looking through listings on the market and running my numbers, obviously in this market it is difficult to find cash-flowing properties. With that said, I hear on BP many times that investors are looking for ~10% COC return. Is a 10% COC return expected after year 1? Year 15? Year 30? Analyzing these deals, I have found ~4-5% COC return opportunities after remodeling (I will be doing this myself). I just wanted to get a better understanding of what metrics that you guys are using in this market to determine a "good" deal. I understand that this will vary depending on investment strategies but, I would like the opinions of investors who have a better understanding of what I can expect. Thanks so much for your time!

Andy O

Salt Lake City, Utah

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Patrick Drury#2 House Hacking Contributor
  • Real Estate Agent
  • Columbus, OH
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Patrick Drury#2 House Hacking Contributor
  • Real Estate Agent
  • Columbus, OH
Replied May 28 2022, 14:06

@Andy Okamoto
A 4.5% COC after remodeling isn't very good. typically a lot of investors are looking for a 10% COC. Definitely buy an owner-occupant duplex that's a great way to get started. Once you have that one down look to pick up more rentals. If the margins are just not there when looking for more rentals you should look at investing out-of-state where you can get those margins like in the midwest where you'll have better cash flow.

  • (614) 412-4565

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Joe Miller
  • Realtor
  • Columbus, OH
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Joe Miller
  • Realtor
  • Columbus, OH
Replied May 29 2022, 08:55

@Andy Okamoto

I am going through the same process currently - give me a call today and I am happy to answer any questions and bounce ideas. 

Real Estate Agent Ohio (#2021000671)