Vernal Utah

[Amanda Boshard]

My husband and I are looking to buy our first duplex or fourplex. We have been looking in utah county, Utah, but we also have seen some properties in Vernal Utah. Im wondering how the market it for rentals in the basin is? does anyone have any experience in that area? I know it use to be a really hot spot when oil was up. We are just thinking it could be a good time to buy when oil is down and hopefully it gets hot again, but I also don't want to have an empty fourplex. 

[Steve Olson]

Hi @Amanda Boshard.  I traditionally work in the triplex/fourplex arena here in Utah County.  For the most part, everything is going for about a 5 cap.  There are some new construction opportunities here that do better than that though.  I was in Vernal a few weeks ago on a fishing trip and couldn't help but look at the market.  You can typically get land cheaper there but you're exactly right about demand.  When demand is strong your property will be filled and life will be good.  But in a one dimensional economy when it's bad, it'll be really bad.  I saw this happen to a lot of investors who bought trailers etc up in North Dakota back during the shale boom.  Completely different market though.  It's okay to buy when oil is down...I've helped a lot of clients buy in Houston.  But you can agree that Houston is just a LITTLE different than Vernal LOL.  Much more diverse economy.