Ogden Utah.....Is it worth it?

[Shaun Walker]

Ogden Utah....Is it worth it?* (It won't let me correct my typo in the title)

My wife and I just spoke with a lender and got pre-approved for a loan. We are planning on purchasing a duplex and living in half of it. The only place we can really afford in Utah is Ogden. I have been watching the MLS and some other sites for a while now and have seen some good deals come and go. We even went up there (from Orem, a 1.5 hour drive) to see some units and get a better feel for the community. It just seemed really slummy and dangerous in general, we even saw a drug bust at 3 in the afternoon! For those of you who own rentals, multi-family or otherwise, how do your units perform? do you have a lot of tenant problems? tagging problems? Drugs?

Is Ogden really a up and coming market like Zillow claims? https://www.zillow.com/blog/hottest-markets-2016-1...

We are anxious to get started and we want to stay in the state for now. Should we take the plunge and move to Ogden from happy Utah valley?

Just to get some key word alerts going: Weber County, Roy, South Ogden , North Ogden, Layton, Weber State University, Harrisville, Clearfield.

[Ryan E.]

If you saw a drug bust in the neighborhood where you are looking to live then you don't want to live there. Ogden is like anywhere...there are good neighborhoods and bad. I've been in plenty of the bad areas of Ogden and it feels like I'm on set of The Walking Dead. Certain areas of Ogden has big problems with drugs and gangs. I would stay away from those areas personally, especially if I was planning on living there. 

[Katie Stone]

Personally I would never live in or have a rental in Ogden. South Weber? Yes. Layton? Absolutely. Even Perry or Brigham city, but not Ogden. I have never lived there but the crime rate is higher, the city seems run down (however the previous mayor did a great job with the city's appearance etc). There is a reason Ogden is more affordable. Hope I didn't offend anyone from Ogden. Just my own opinion :)

[Tobias Falzone]

Ogden definitely has a stigma from years past, and central Ogden varies from street to street, but the long term prospects are very good. A cohort of young energetic professionals has come into the city. The city govt is pouring $ into downtown and developers are putting in nicer buildings. The city is paying landlords to lower density in central Ogden, which in the long term will alleviate many of the petty crime concerns that aren't any worse than SLC. Population increases & lower supply bode well for Ogden.

[Angela Clough]

I agree with Ryan, there are good neighborhoods and bad neighborhoods.  I lived in a four-plex on 29th and Madison, which is in one of the highest crime areas, but also an area that Ogden City leadership is working hard to redevelop.  I lived there for a year and a half, while working at the Main Library of the Weber County Library System on 25th and Jefferson.  I walked to and from work safely.  Ogden has a lot of good things happening, and a really active community that is working hard to make it THE place to be and live.

If you are concerned at all, be sure to hire a realtor who lives and/or works in Ogden.  He or she will know which areas to avoid, and which areas are the better investment.  

[Caleb Rigby]

@Shaun Walker, what areas were you focused on in Ogden when you went up there? 

[Shaun Walker]

@caleb I am just looking at anywhere that has a duplex under 200K. 

The one we looked at was at about 700 E 21st street, it is now off the market.  

This is the one I am the most interested in at the moment: https://www.utahrealestate.com/1459186

It is close to the high school I believe. 

@Tobias Falzone what area is considered "downtown"?

[Shaun Walker]

does anyone have any thoughts on the article posted at the top?

Are homes in ogden appreciating as much as zillow claims? 

[Charles Doehler]

Is the beauty of this site to bring in more competition?  No, I don't think you should try Ogden.  Flipping in Orem sounds much better.

[Samantha Magina]

I'm fascinated, I'm a CPA so I only know Ogden as a major IRS location mailing center.

[Tobias Falzone]

@Shaun Walker  West of Washington between 21st and 26th is where I would peg the downtown core, with 25th st. being the highlight.  A lot of nice newer development in that area.  The areas between Washington and Harrison is the central areas that have been historically stigmatized.   East of Harrison is pretty nice an quiet.  More south towards Weber state is also a nicer area.  If you want to see nice houses in the middle of that area, check out the 2500 block of Eccles.  Beautiful old victorians lovingly upkept.  Don't get me wrong, there are a lot of houses in disrepair, but I think Ogden has all the indications of a turnaround in the medium to long term.

[Jonathan Holdaway]

I own a 10-unit building on the 2400 block of Monroe Blvd. I have had very few problems in my building itself, even though it is in an area that Ogden City wants to classify as 'blighted' so they can get some federal funds to fix it up. There are a number of homeless wandering around in that area but with sensible security precautions they haven't been a problem for my tenants.

[William Hochstedler]

@Tobias Falzone is singing the same song I have for a couple of  years now.  

I believe that one of the many things that will drive appreciation and gentrification in Ogden is the continued unaffordability in Salt Lake, Utah, and now Davis counties.  Sunset and Clinton are the only towns in Davis county where you can buy anything for under $175K.  In fact, the existence of this thread points to the fact that both investors and residents alike are looking to Ogden for the value play.

Unlike Davis county, Ogden has a rich history with the accompanying architecture.  It suffers from 75 years of bad landlording and deferred maintenance.  But the ratcheting is definitely happening.  

Flipping is tough there because, particularly in central Ogden, most properties need to list for under $150K.  We are seeing these thresholds challenged.  But for the time being, even decent margins net small dollars.

I agree with Zillow that Ogden is one of the best buy and hold markets in the country.  And from that list, one of the least expensive.

One final comment is that, if you're going to be absentee, make sure you have a good local team in place.

[Dan Lukens]

@Shaun Walker, You will love Davis county!!! Really anything east of Harrison is a really good place live. Doing a house hack would be fine if you don't have any kids just because the schools are a little lacking. I really like Ogden, I agree with @William Hochstedler that the city had too many slum-lords and now the city is fighting its way back.

[Shaun Walker]

Well we have a verbal soft acceptance on a property in south Ogden (not too far from the university)! just wanted to get some feedback and advice from other Ogden/Utah investors.

Purchase price: 180,500 they are covering the closing costs.

Their previous rents were $850 (3 bed 1 bath) and 575 (1:1). We are planning on living in the 575 unit for at least one year and hopefully fixing it up so we could get 650 out of it once we leave. 

It is an older house, as with most in ogden. But it seems to be a much safer area than central ogden city. 

Here is the interesting part, there is a third illegal studio apartment in the basement as well. does anyone know how hard it would be to get the city to allow it to function as a triplex or could we (my wife and I, no kids yet) live in the studio as the owner-mangers and rent out the other 2? 

Any advice on Ogden "house hacking" and land-lording would be appreciated, especially since we are further in the process since last time I posted . 

[Shaun Walker]

Keyword alerts: Roy, Ogden, South Ogden, Davis, Weber, Layton, Clearfield, Northern Utah, Utah

[Tobias Falzone]

The city is actively working to get rid of these illegal units and actually paying landlords to decommission legal units around the city to decrease density and crime. You would probably have more luck integrating the space into one of the existing units for additional rent. Personally, I would push to find a 1% rule property in Ogden, but the areas around the university are better and probably have less ideal rent ratios because of the stability.

[Jonathan Mueller]

I agree with @Tobias Falzone that you should take that extra space and add it to an existing unit and raise the rent. I was looking into a duplex in Ogden that had the same thing and I spent a lot of time on the phone with the city and they were not interested in giving me a go ahead to make it a legal triplex. As the others have said, Ogden has great neighborhoods and not so great neighborhoods. You really need to drive the area to get a feel for the different parts of town. 

[Peter Pearson]

Great thread, I'm currently investing in Ogden myself and agree with the posts that say it's an amazing buy/hold market, they're completely true. Look at all that's being planned with the new northbound interstate going in. @Shaun Walker I see tons of potential in Ogden, let me know if you need any resources from the area.

[Alfredo Lara]

@Peter Pearson I am about to close on a property in Ogden.  I am looking to add a kitchen. Any leads on a good contractor in that area ?