Bountiful – Ogden, Utah Investment Properties

[Ashlyn B.]

Hello fellow Utah investors. I am wondering if anyone has been looking for multi-family investment properties in the northern part of utah. Bountiful to Ogden. It seems like I have looked at a bunch of places and NOTHING has been meeting the 1% rule.

I am new to investing, and I am just wondering if it is just a bad market right now? Or if there are better places to be looking? 

[Sean Tagge]

Hi @Ashlyn B.

From what I get form talking with many investors that I know we are in a very hot sellers market from Ogden on down. Home prices have surpassed pre 2008 market crash prices to put you in perspective. I have seen a couple investors purchase in more of the .7% to .9% rent to purchase ratio range and still cash flow and do pretty good with the investment property. 

You might just need to get creative. For example many places I see that are renting have the current rents way below market value. 

Example I just saw a property with mechanic garage listed as: Asking $185,000 for purchase. the rent for the house was $700/mo and the garage was rented $300/mo (thus .54% rent to purchase ratio). But after doing some research I saw the house could rent for $850/mo and the garage for $1000/mo (thus the ratio could be 1%!). So also be familiar with what rents are in the area and what you place you are looking at is and if it could potentially be raised. TIP: use rentometer.com to do this quickly. And also I always expect to never purchase at asking price and expect to negotiate back and forth down the purchase at least 10% or better! so know there is negotiating room in all of your deals just think of the asking price as a suggestion and not set in stone. 

Another Example. I purchased my duplex with current ratio of .66% I raised rents from $1,700 to $2,150 after making a few repairs (this got my ratio up to .84%) and getting the units up to par. 

Hope this helps