Should I buy this home or not?

[Jacob Delano]

So the home is 815 E Rowley Drive, Millcreek It, 84107.

https://www.redfin.com/UT/Millcreek/815-Rowley-Dr-84107/home/91668698

I am under contract at 380 with 5 of closing costs paid by seller. The original home is the right half of a twin made in the 50's (1080 sq ft 3 bed 1 bath). The 2 story condo added onto the back is 25 years old (2 bed 1 master bath) with a massive kitchen for all 5 bedrooms to share. My plan is to rent rooms until I eventually resurrect the old kitchen and wall off the two units (which are on separate HVAC) and add a laundry room to the newer build so that both units have all the basics.

The red flag with this home is DOM of 80. I think as an investor which is my goal this makes a lot of sense once it is a mother-in-law. It had enough parking and even an extra land lot to do whatever I please with. Lots of my friends are telling me to buy a home I really want to live in instead. This isn't my first choice of area, but I think I could cash flow in SLC from the start renting rooms. A lot of management work I know, but it will pay off I believe.

I'm posting because I'd like another investors view of my situation. I can command at least $500 in rent per room with a mortgage under $2000. The high school and middle school are subpar, but I think the SLC demographic of working professionals would rent this property room by room and as a mother-in-law down the road when I convert it.

The home doesn't lend itself well to single family, but for a first time home buyer/investor I think it lends itself very well to a Multifamily rental.

Thanks in advance for comments and thoughts! Happy Halloween 🎃🎃!

[Jeremy Davis]

@Jacob Delano I live right down the street!

That being said, I wouldnt bank on successfully renting it out by the room. That area is more considered Murray in my opinion, and not enough demand for college or younger people that want to rent a room. If you were sugarhouse, avenues etc, youd have a better chance, but usually only college kids or "not so reliable" adults rent rooms. If you were to rent a room with other strangers, would you choose Murray?

It's not impossible for it to work, it w pi told just be a lot of management and higher than average vacancy percentage