Investing in Utah - townhome with no cashflow?

[Clark Cannon]

Hello BP community,

I am contemplating a purchase in Centerville Utah. I've found it difficult to find a property in a good area that cashflows in the first year. I am following a buy and hold strategy and slowly trying to build a portfolio for retirement. The property is a new construction townhome 4 bed 2.5 bath, 2 car garage with higher end finishes. I live nearby and would be self managing the property / doing most repairs.

My thought is that with continued inflation and undersupply of homes in Utah that the property will benefit from appreciation, have lower expenses (new construction), and strong rent growth (excellent location  near major shopping centers, stores, parks, and close to down town SLC)

Main concerns are that the property may not have much more room for appreciation since we are at all time high's in Utah now. The size of the property is (~1700sqft) which may set an upper limit on rent growth and the property not cash flowing in the first year or two. I'm stuck between deploying the 100k into multiple out of state properties with lower purchase prices, likely higher risk tenants, good cashflow and little to no expected appreciation or sticking with this.

I've done an analysis in the link below with 5% rent growth, and 2% appreciation.

I greatly appreciate the expertise of this community and welcome your thoughts!

https://builtbycw.com/communit...

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