Salt Lake City

[Alex Chau]

Hey guys,

I am interested in investing and building a team in Utah Salt Lake City. I know I should do my own due diligence (which I will), but before I do, i wanted to ask any experienced investor from the area if you think the market there is starting to level out and etc. Any help would greatly be appreciated.

[Rebecca Belnap]

@Jeff Rappaport is the most experienced investor who has replied to you yet.  He is one of the investors I listen to.

We are having a slight leveling, but inventories are still low.  There are bidding wars on most single family properties that are even close to habitable for anything under $300k in most areas.  As a general rule in Salt Lake County, the east side is more valuable than the west side with pockets occasionally breaking that rule.  For Utah county it is the North cities being more valuable than the South. This summer looks strong and even rising interest rates are barely slowing the growth.  

My main concern is seeing that a lot of clients are using cosigners and coborrowers to qualify for houses and are having trouble qualifying based on their own incomes. Considering that DU allows a 57% back end ratio with good credit, this could spell trouble down the road.