What are you investing in?

Question

Hi all,

Last year I was able to flip a house, but mostly Iv been investing out of state (or house hacking) since Iv found it difficult to find deals in SLC.

However, this year I want to focus more on local deals and try to get deeper into the market.

My main focus is flipping, but I’d be interested in BRRRR deals, or anything I can value add too. Even commercial interest ls me, as I’m starting to want to tackle bigger deals.

My experience with interest rates, rent to price, and sellers was that generally getting deals here was very difficult. But I’d be curious to know if my fellow investors have been able to find success, and if so, where?

Or perhaps you are all experiencing similar issues?

As for myself, Iv been considering trying to develop SFH here, where I could focus on multiple houses at one time. But that may be unrealistic.

Thanks for your insight.

Jason Allen · Answer

Have you considered investing in Columbus, Ohio? There are an abundance of opportunities here meet or exceed the 1% rule.

Carl Davis · Answer

Creative finance deals are really the best way I've seen other investors do it.

That or house hacking. Obviously with house hacking you may not move for a few years though unless you're adding units.

David B. · Answer

Hi everyone —

Thank you for your responses. However I should have been more clear as I think there was a misunderstanding.

I am asking what specifically — if anything — investors are making deals out of in SLC area, not generally in the US.

I am flipping pretty heavily out of state and I buy a lot of off market deals (all value add). But I’d really be interested to hear what investors are making pencil here in Utah, as I have found it pretty hard to source anything here. Prices are high, rent is low, and there is a fair amount of competition. So curious if any other investors have found a strategy that is working for them in SLC market specifically.

Sorry for the confusion. Thanks again.

Account Closed · Answer

Thank you for posting this! It's difficult to find people focused on Salt Lake and surrounding areas here on BP. AT least for me. I'm learning from the conversation you started here and I really appreciate it.

I'm a new investor from Midvale and working towards small multi family properties in the Midvale / Sandy and surrounding areas.

I hope to talk more with you and wish you great success.

Doug Quist · Answer

I'm in Sandy and have been investing along the Wasatch Front for a number of years, but haven't really bought a property since Nov 2021 when I purchased my last fourplex in Payson.  I have six fourplexes, one duplex and a single-family.  I am building two more fourplexes (Surprise, AZ) and Ogden,  UT and partnered with a buddy on another fourplex in Ogden.  This month I'll partner with my daughter on a Subject To deal in the SL Valley.I've looked a several seller-financed properties both SF and small MF but the sellers are unrealistic about pricing and I have no interest in a negative carry.  On would have been negative by about $1k a month (SF) and the other negative by about $2k a month for a fourplex.  No thanks!

Chris Seveney · Answer

@David B.

Mortgage note investing

Not correlated to interest rates

Can provide steady cash flow

Can buy older loans with low loan to value

Alecia Loveless · Answer

@David B. I don’t know anything about SLC but I second looking for value add off market deals.

My agent brought me a property that was soon to be listed last year and the listing agent just sat on it and sat on it and 8 weeks went by while he showed it to me and a bunch of people but never listed it. Finally I made a full price offer based on the price he said he was going to list it at and the listing agent pitched a fit but the offer was accepted. He was planning a bidding war and screwed himself over.

Now 10 months later the building has doubled in value with proper maintenance and management.

Value add off market is your best play for big gains in an over inflated market.

Wale Lawal · Answer

@David B.

It's interesting to learn about your real estate investment experiences and your intention to concentrate more on Salt Lake City (SLC) local transactions. It might be difficult to succeed in a market as competitive as SLC, but there are tactics you can do to improve your chances of securing lucrative deals:Networking: Developing connections with nearby wholesalers, investors, real estate brokers, and other specialists in the field can yield important information and access to off-market transactions. Join investment clubs, go to local real estate events, and use internet resources to make connections with other members of the SLC real estate market.Market Research: To find communities and property types with potential for value-adding possibilities, do in-depth market research. Seek out locations that are undergoing gentrification, development, or expansion where property prices may increase over time.Creative Financing: To fund your local deals, consider unique financing solutions including partnerships, seller financing, or private loans. In order to obtain homes in a competitive market, be open to investigating various financing options.Off-Market Deals: Take the initiative to look for off-market deals by using internet resources, direct mail campaigns, or money-driven searches to locate motivated sellers who might be willing to sell their homes for less than market value.In the end, success in the SLC real estate market comes from perseverance, understanding the market, and being flexible enough to adjust to shifting circumstances. You may raise your chances of discovering lucrative possibilities in Salt Lake City by making the most of your prior expertise, networking with local experts, and being aggressive in your deal-finding efforts.

Bob Stevens · Answer

Continue buying, keeping some and flipping Anything in my market where the net cap is 20% ish based on cash purchase.  I have one of my guys walking a duplex today, All in should be 75k, rents will be 900/900 so about 14k- 15k NET income so 20% ish. I may keep

All the best

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