All Forum Posts by: Douglas Larson

Hi @Alexander Schaaf

Welcome to BP. My recommendation is to listen to every BP podcast you can and search the forums for specific questions and terminologies. I think your plan to do some house hacking is excellent for a first investment. Many of us started that way!

I ran across this deal not far from you in W. Jordan and I wish I could bid the full-price, but its a HUD foreclosure and requires owner-occupant bidding first. If you're ready to make offers, consider this one: TRESSLER Rd.

Have fun and keep learning!

It's difficult to "find" a great rental or flip these days. You usually have to "create" a good deal by finding off-market deals or making low-ball offers until you get something or by raising rents as @Sean Tagge outlined above.

In SLC the only place for 1% consistently is the NW side of SLC. I've got a West Valley home that rents for $1275 that I paid $123k for and invested 5K in repairs. I also have 3 houses in kearns that rent for $1295 per mo and each of them was about 125-135K after repairs. All of these were REOs and short sales listed on the MLS. I just closed on one but the great deals are getting tough to find!

True multi-family properties that have decent cash-flow are tough to find, especially in the last year. I know several investors that buy SFR's with a basement entrance and create functional duplexes, but local ordinances often prohibit those and you run the risk of getting fined.

I generally stay out of Ogden but I wholesaled 2 homes up there to a buy&hold investor that loves N. Ogden and gets better than 1% on all of his rentals. I sold him a 3/1 SFR that cost him a total of $75K after repairs and he rents it for $950 per mo.

Have fun out there and let us know of your success! 

I also hear great things about Bank of American Fork and also Zions for construction loans. 

I have owned 3 improved lots in Santaquin, UT. Mine were in the Vista Ridge area. I sold them last year. For spec building, the numbers are a bit tighter down there because people tend to go there to save money. Will you act as the general contractor? Do you have a B100 license? If not and you go "owner-builder" you will have to move in for at least a few months to make it legit. If you simply build and put it on the market you can get in trouble.

"Flipping" can be a great way to get cash but you don't even have to incur the risk or do extensive repair work with a traditional flip. Before BP, I never would have considered wholesaling, but I have done 6 over the last 18 months and I have another 2 under contract. Some purists might not consider wholesaling a type of flipping but I do. You discover or create a great deal and sell it to someone else. I have actually closed on a few of my deals and done some clean-up before putting it out to other cash buyers. I can get just a bit more money sometimes for a house that doesn't have piles of dog crap on the carpet or old bathtubs in the front yard. Go figure! 

I have never sent out mailers or put up bandit signs or ads. I network at local REI clubs and talk to lots of agents. I have made about $8k on each wholesale. In the process, I have also found 3 more good long-term rentals for myself. Finding or making great deals is where it all begins. If you can develop that skill, the rest will come.

Have fun out there and keep us posted on your success stories!

 EXACTLY!!!!

Over the past 10 years I have leased a few dozen SFRs in several towns in Utah. I have also had rentals in Hawaii and California. I sometimes have one or two people mention a service dog but this spring I have 2 vacant properties and every other caller has a "service" or "therapy" animal . . . or three!!! 

All of these callers are quick to add that their "therapy cats" or guinea pigs or pit bulls have been "certified" by a vet or their physician. I understand the laws about discrimination against disabled people so I try to be absolutely fair about evaluating their applications compared to others. Still, if I clearly state that a property won't allow pets am I required to consider three "therapy cats" and a "documented emotional support pit bull" and maybe a seeing-eye hamster?

@Erica Nagle

Sorry to hear about the fun you're having. I am quite familiar with these "coaching/mentoring/bootcamp" outfits. Please listen to  from the archives . . . 

This company has a very lucrative relationship with all of the biggest gurus in real estate and all other kinds of personal and financial success. 

If a success guru comes to your town with a "free seminar," these are the people who call you later with "an opportunity to work one on one with a mentor," even if you didn't buy the course offered at the back of the room for a "today only special!!!"

You can get some attention by complaining with the BBB or Ripoff Report but trust me, the thing they fear most is being reported to the State Attorney General. You did the right thing with that! Keep after it!

Start with one or two and see what you think. If it's working then do more. I prefer a few rentals, a few flips here and there, a few wholesales each year and some land deals. I had 12 rentals at once in Utah just before the crash. I sold most at the right time and lost money on a few. I didn't default on a single loan but it was a stressful time. I came out of the tough times with a big net positive but you couldn't pay me enough to go back to that many headaches. I have a few rentals in management now and I manage a few myself. I delegate a lot better than I used to but I still think 21 doors would cost me my sanity!

Once you get a couple under your belt you will know if it's right to take on more.

Hi @Melissa Warnock

I don't live far from you. Draper is a tough market for buy and hold because cash-flow isn't great. You can find small, older homes in West Valley for 140K that need a little work but will rent for $1300 per month. In Draper you will occasionally find an old, small house and pay 200K+ and maybe get $1400 per month in rent. In the newer parts of Draper you will pay $350K and up for a home and rent will only be $1800 per month or so. If you are investing for long-term appreciation but monthly cash-flow is not a concern, Draper is a good bet. The schools are good and you will generally attract better tenants than the northwest side of Salt Lake. I am not an agent but I can recommend a couple good investor-focused agents if you send me a message.

@Chase Nye - I've been in Utah for over 11 years now and I'm pretty bullish on the single family housing market for the next couple years at least. ! My post is toward the bottom!

Have fun and check out the local . They are a great way to network and learn!

 Yeah, some clubs can be a pitch-fest and others can be just about good education, networking and making deals. I really like the lunch meetings and the Bigger Pockets local meet-ups. Have fun out there . . . and hold on to your wallet!