New Investor - CAP Rate in SLC, UT
I'm just about to put in an offer on a 4 unit property in the Salt Lake valley. I've been looking for about 6 months and really like this property. Sale price is about $520,000; the gross income is $48,000; net income is $32,500, which gives a CAP rate of 6.2. It is a turnkey property and has been fully remodeled with long term leases in place.
Does anyone invest in the Salt Lake valley? Based on the properties I've looked at it seems that this is a good CAP rate for the area, but I'd love to hear the opinion of others in the area. This would be my first rental property and I want to make sure it would be a good investment.
On a related note, I was planning on traditional lending with a 20% down payment. Any other recommendations for a newbie? I don't want my first property to be a screw-up. Any help would be appreciated. Thank you.