All Forum Posts by: Becca Summers

@Colton Pierce Almost every city in Utah will only allow three unrelated individuals so by the room doesn't always pencil out. 

There are plenty of areas that work. The real hard part is you have to stay under $450,000 for a single family in the Sale Lake and Utah County area. Also bedroom and bathroom count at least 3 beds 2 baths. This is a tall order. They do exist but go quickly

I'm a fan of always keeping properties. The few things that come to mind to consider is one are your properties good rentals with a healthy demand in terms of location bedroom bathroom count etc. Second if you move out of the properties for more than 3 years you lose the ability to sell them at a tax-free game with current tax laws. Last one is sometimes people find it very emotional to rent out their personal properties and take any of the damage caused by the renters very personal. 

The hardest part about building a fourplex right now is finding a property with appropriate zoning for sale. Most of the fourplex new construction was developed and got zoning approved to make it happen. Construction costs and land costs are pretty prohibitive. 

The 1% rule in Utah doesn't work, however you can still get properties that cash flow and get great appreciation. Would you be against turning your current home into a rental property and moving into another one? The trick with the Utah properties is to make sure you are purchasing under the average purchase price in an area where rent rates are higher. If you play on rentler  you'll get a good feel for rent rates for different areas it has a good map feature

@Kathryn Smith If your home is not a legal duplex I would be cautious about moving and renting both units. If you do make sure there is enough parking on-site off the road. That is when your neighborhood will turn you in. I love investing in Utah the cash flow is not what it is in other states but the appreciation and long-term wealth growth is awesome. What is your long-term plan? Use the cash flow to live or grow and roll up your portfolio. 

@Jay Gordet looking at comps even if I go further out there is nothing to justify that value. The seller is trying to sell it at the value if the rent rates were at market rents not far behind. I think the appraiser is right and if the seller won't come down I would walk. 

@Jim Piety Sorry I missed your response. I wouldn't invest with the hopes of appreciation. If it doesn't cash flow a least one dollar and you have to pay to keep it up that's not an investment that is speculation. I know it's hard to break in but speculation investing hoping something happens that you have no direct impact is how so many lost homes in 2008. 

@Jim Piety If you are moving in I'd put get a conventional loan so mortgage insurance would go away and then use the other money for investments. Cash preservation is the name of the game of investing. But if the property doesn't cash flow it's not a good investment. 

@Axel Enriquez, the First step get the contract to title. The second get your earnest money to the title company so you stay compliant. The title company will do a title search to verify the seller has the right to sell the property.