All Forum Posts by: Kim Gibson

  Sandy has a good reputation, the houses in the area will most likely appreciate over time.  Check roof age and condition, that's a huge expense ($15,000 +)  The HVAC looked newer so that's good.  The house looks like a flip, so make sure you get a great inspection, walk thru with the inspector.  You don't want to get a house that looks like a dream on the outside, but behind the walls is a nightmare.  Your cash flow numbers look a little slim for me, but if you are seeking capital appreciation over cash flow then that's not a problem.  

The best I can offer is to follow the steps wholesellers use to find off market deals.  Drive for dollars, look up the owner on the tax records, write letters, make phone calls.  If you do what no one else is doing you will get the results no one else is getting.  

If you can find a fixer upper- not a complete gut, you could get a 203k FHA loan, its like a construction loan so the bank will give you the financing to fix up the place. I would aim for a house with a basement apartment or mother in law. Live in the apartment and rent out the rest of the house by the room. I believe BYU changed the housing requirements, so single students can live anywhere, not just campus approved housing. This could be a great opportunity for you. I know Utah is a really competitive market, set your budget and dont get into something that depends on the renters to make the mortgage payment. Decide if you want to have students as your renters or families/single professionals and search accordingly. Utah county has lots of tech jobs and so you may be able to get more per room if you avoid the student rentals.

Also,  dont spend every last dollar you have for the downpayment,  have a reserve.  Homeownership can get expensive.  Lots of surprises.  When I bought I had a list of must haves.  Cheapest house in the best neighborhood you can afford.  All the right things wrong with it ( needs flooring and paint vs bad foundation and roof damage).  Buy a house someone else would want to buy ( think long term resell ability).  Buy a house no older than you, I know this one is hard...you may be able to push to 1980 and newer.  Then you avoid major updates/problems.

Good luck.

We have a BP Meetup next week, follow the link to the meeting info.

https://www.biggerpockets.com/...