All Forum Posts by: Sam Levin

Investment Info:

Townhouse buy & hold investment.

Purchase price: $472,000

Represented an investor client on purchase of brand new townhome with breath-taking view of Salt Lake valley (3 beds 2.5 baths, 2-car garage, 2,400 sq ft). We also manage this property for him now. This townhome is renting for $2,350/mo.

Investment Info:

Condo buy & hold investment.

Purchase price: $336,600

Represented out of state investor on purchase of brand new condo (3-bed 2-bath 1-car garage, 1,300 sq ft). We also manage this property for him now. This type of condos is currently renting for $1,950-2,100/mo.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $636,570

Represented out of state investor on purchase of brand new single-family home in Bluffdale, UT.

Thank you @Dmitriy Fomichenko !

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $3,450,000
Cash invested: $840,225

Representing an investor client in their build/pre-construction purchase of an 18-unit Apartment building. Today's property value exceeds 5M.

Investment Info:

Large multi-family (5+ units) commercial investment investment in Salem.

Purchase price: $4,296,000

Representing an investor client in their build/purchase of total 8-unit upgraded townhomes in Salem, UT. We also manage this property for him now.

Hi Armando. We've got brand new fourplexes in Salem (South of Provo) that are priced at a 4 cap and have many great features, including rooftop decks, cathedral ceilings, impeccable styling, many included upgrades, etc. Please let me know if you want to learn more about them. -Sam

 Long-term only. Until recently a person could buy a new build 4 BR townhome here with 20% down and get immediate cash flow, albeit by a thin margin. Now you need more cash down to be in the black, but who really cares about cash flow when it's the other stuff that makes you wealthy. The money they make at the same time through debt buy down, appreciation, and tax deferment into the property are the real win. Unless your working in a depressed market rents keep going up so you end up with decent cash flow after a few years. There's less/no possibility of getting rich quickly (although these last two years even stable plays like this have crushed it on appreciation) but you are getting there safely, easily, sanely, and reliably. You also never have to get your hands/clothes/car/life/wallet dirty with renovation projects.

Right up front, you have the civility and simplicity and predictable(ish) closing timing that comes with buying from a production builder, rather than trying to play musical chairs with other investors and the resale market. You get the big ticket item to depreciate, incl full depreciation of all of the new appliances etc in yr 1 assuming you know how a 'cost segregation study' is used. If not, you should google it. You get a year of full builder warranty on everything. The toilet is running? Call the warranty department, give them the tenant's contact info for access and forget about it. Most anything that will go wrong, if anything, on a brand new townhouse from a reputable builder will go at the start so you almost always get 5+ yrs of no maintenance hassles. You also get the intangible but very real advantage of dealing with tenants who can afford to be in the shiny new neighborhoods. I've managed a bunch of both types of units. Just from a prop mgt perspective alone, it's worth it to go with the premium new build.

I (almost) always buy new build directly from a production home builder, so it's always brand new um, everything, and a brand new neighborhood. This gets me a builder's warranty, many years of trouble-free operation, and most importantly high-end responsible tenants. While you can surely hit better cap rates and cash flows in a less desirable neighborhood, it's not worth the problematic tenants and repairs/renovations which all take time, energy, and money out of your pocket.

There's always that chance that it could work out well, but I'd say 9 times out of 10 you're going to have problems with that. Best to keep your tenants and your repair team separate.