All Forum Posts by: Jon Neviaser

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Great info Alan.  I keep hearing from potential home buyers that it is a bad time to buy, but I disagree.  In our market we may see prices flatten, but the likelihood of prices decreasing is slim given the economic development and population growth we are seeing in and around Salt lake.  This coupled with rising interest rates makes this still a good time to get into a home.

Hi Chase,  My wife and I also moved to SLC from Philly about 3 years ago.  I work in property management and know exactly what you mean....some agents simply do not understand the needs of investors.  It would be great to connect.  When would you have time to hop on a call?  Thanks, Jon

Hi Thomas,

You can certainly rent the property on your own, but you may want to hire a property manager.  The industry is evolving to provide a service that creates a highly passive investment for owners.  It is particularly challenging to handle maintenance and inspections from out of state.  I'm happy to hop on a call to discuss.  Let me know.

Thanks, Jon

Hi Craig,

It sounds like a deal with a thin margin of error.  I suggest accounting for vacancy, maintenance, and property management fees.  Even if you plan to manage yourself, this should be accounted for to accurately asses the investment, because if you were to sell it another investor would calculate this into the cap rate.  I'm happy to discuss further, let me know. 

I agree with Jeremiah.  It's unlikely to be able to raise rent during the course of a lease without having a provision that allows the owner to do so given an increase in fixed expenses, such as property taxes, etc.

@Nate Waters, I focus on property management in Salt Lake County in SFR and small MFR properties (under 50 units). Our company started from the investment side which gives us a unique focus on investor focused management. In the market today, MFR is tremendously competitive and nearly anything that is a worthwhile investment trades off market. The SFR space still offers value as many investors are focused on flipping and there is certainly an availability through a variety of channels to pick up value add SFR's.

I can refer you to some great agents that understand investment and we can discuss alternative pipelines for SFR properties as well. Would you like to hop on a call to discuss?

Glenn, we are seeing that properties in hot sub markets trade at lower cap rates. Small MFR properties in the areas you mentioned will trade at cap rates as low as 4% as the investment carries less risk than other sub markets as rents are higher, thus attracting better renters. I suggest looking at the entire picture when analyzing a purchase. Look at potential value add possibilities and what amount of capex you will have to invest that will not increase income such as roof, plumbing and electrical systems. No doubt you can get a better return in less attractive sub markets, but it comes with the risk of being in a location where good tenants do not want to live. Sugarhouse, the Avenues and downtown will be locations where people will desire to live for the foreseeable.

Let me know if you want to discuss as I'm happy to hop on a call. 

Hi Hadar,

This depends on what type of multifamily properties you are looking for.  It ranges from 4 plexes to 100 plus units.

Generally speaking, the inventory is tight and highly competitive. When MFR's trade, they trade quickly. In place cap rates tend to be in the 5-6% range. However, there are often value add opportunities that the smart investors are taking advantage of.

My focus is property management for small MFR (under 50 units) and SFR. I'm happy to chat more if you want to connect.

Jon

Yes, all unpaid rent and late fees from prior months can be put on a 3 day notice.  You should always apply payments to fees first and rent last as it is easier to evict on unpaid rent than anything else.  You can certainly evict on any amount unpaid, but it's a cost/benefit decision as attorney and filing fees for an eviction are typically $350.  We are well versed in this space and if we want to discuss further, please reach out.