Offer accepted on a 4-br, 2-ba home. Is it a good investment?

[Eli Etzioni]

After putting 2 unsuccessful offers in on single-family homes in the Salt Lake City area, my third offer was accepted on a house in the Wallace Heights neighborhood of Sandy, Utah (south of Salt Lake City).

Here is a link to the MLS listing: https://www.utahrealestate.com/1782294

My goal is to purchase a property as a long-term investment and rent it out. I'll be occupying one of the rooms for the first few months.

The house appears to be in good condition, although we will see what the inspection uncovers. There is unfinished basement space that could be renovated into another bedroom and/or bathroom, eventually. Here are the basic numbers:

- Price: $455,000 (5% down payment of $22,750 not including closing costs)

- Monthly payment: $2,142.01 (includes principal & interest, property taxes, and homeowners insurance)

- Estimate of monthly rental income: $2,400 (bedrooms should rent for avg of $600/month individually, or I may find a family/group willing to rent the whole house)

Here is a financial analysis with vacancy assumptions and a maintenance reserve.

I would be so grateful for opinions from some more experienced investors: Does this seem like a solid long-term investment? Or, did I get a bit too loose with my analysis criteria, wind up with something mediocre, and should I walk away while I still can?

Lastly, if anyone reading this knows the Sandy, Utah area and particularly the Wallace Heights neighborhood, any advice would be welcome.

Thank you!

[Andy Jenkins]

You got under contract in this crazy SLC market. That's a success in itself! If you're looking to hold on for the long term, you should enjoy some great appreciation. The Northern Utah market is booming. People are coming here from all over the country and there are hardly any homes being built. Supply and demand.