Utah Market, Incentives, Tax Breaks, Grants, Etc

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Utah Market, Incentives, Tax Breaks, Grants, Etc

River Luce
Real Estate Agent · Scottsdale, AZ · Member since 2020 · 15 posts · 3 votes

Good Afternoon Bigger Pockets,

With all of this extra time from Covid-19 I have made it my goal to listen through every B.P. podcast and learn as much as I can. Yesterday I listened to a woman speak about a grant she was given by her state to help buy homes in her area. Because I've never heard this method used before I imagine it probably is only used in very distressed markets. Making it not viable for a large majority of investors. It did however get me thinking about trying to find more creative ways to finance through potential State and Federal programs. 

My Girlfriend and I are planning to relocate at the beginning of 2021 and see Utah as I viable option. I have heard great things about multiple markets their and see it as a good investment area. We have looked all over the state at places such as Ogden, Logan, Provo, Vineyard, Payson, and a few other cities. 

I would love to hear from Utah based B.P. members on your thoughts. Are there any programs you know of or have heard of that would be useful for a first time house hacker coming to the area? 

At the moment the option that appears to be most beneficial to us is applying for an FHA loan. On the other hand I know that many standard loans are starting to offer even lower interest rates the the FHA.

Any thoughts, help, or advice would be greatly appreciated!  

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Lindsay Wolfgramm
New to Real Estate · Salt Lake CIty · Member since 2020 · 8 posts · 4 votes
6y

Hello, I'm a newbie!

We've started looking in these areas (north UT/SL county) as well with the FHA option for our first hack. It's been super competitive in this hot market with these low rates. We're pretty set on finding a multi for our first investment, does anyone know of any areas of pre-con builds in the coming months that aren't in the millions?? We understand these are hard to come by, and quickly picked up. We're willing to wait a bit.

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  • Stefanie Jensen
    Real Estate Agent · Ogden, UT · Member since 2017 · 57 posts · 165 votes
    6y

    @River Luce

    If you decide on Ogden, you should call me. This is a market I specialize in. I’ve lived here forever and I know the ins and outs of every neighborhood. I live here and invest here. I just helped another BP investor pickup a fantastic house hack property. There are opportunities, you need to come checkout your options. Ogden is a great spot in Utah for outdoor enthusiasts and non Mormons. We have great nightlife!

    0Reply
  • Stefanie Jensen
    Real Estate Agent · Ogden, UT · Member since 2017 · 57 posts · 165 votes
    6y

    @Stefanie Jensen

    Checkout the Ogden city website. There is a program called “ own in Ogden”, see if you qualify.

    0Reply
  • Cody Steck
    Residential Real Estate Agent · Salt Lake City, UT · Member since 2014 · 156 posts · 50 votes
    6y

    Hey River, I'll throw in my 2 cents.

    I am a bit biased, having grown up here, and now investing and selling real estate in the area, but ultimately I see the Utah market overall continuing to have very strong growth. Depending on why you are coming here (job, recreation, family, other, etc.) can help you determine what area/city you decide on. 

    I personally believe the Utah/Salt Lake county will see the most growth, especially the northern end of Utah county where the tech corridor sits. There are multiple very large developments set to go in, in this area, and the population in Utah county is expected to more than double from ~600k to 1.3M in the next 30 years. 

    That being said, the market, home, and financing type you decide to go with entirely depends on your own strategy and criteria. I have house hacked 4 times (still doing it) and I have done a conventional loan on all of my transactions. If you are planning to hold the home for the long term, conventional is usually better if you can swing it. The interest rates can still be VERY competitive compared to FHA.

    Hope this helps!

    1Reply
  • Nik Krohn
    Investor · Woodland Hills, UT · Member since 2016 · 84 posts · 31 votes
    6y

    There are a lot of great flipping opportunities in the Ogden area. I strictly stick with Utah county as I know it well. I agree with Cody that northern Utah county is a money maker. We have several rentals there. The cash flow is about $750/850/mo per door for me (self managed). As good as the cash flow is, the appriciation is better :)

    1Reply
  • Becca Summers
    Real Estate Agent · Highland, UT · Member since 2015 · 407 posts · 272 votes
    6y

    Are you a first-time homebuyer? I know of an awesome loan that's only $1,000 down and conventional backed. I personally invest within 40 minutes of my house so I can drive by all my properties in an emergency if necessary. I really like the Utah market my vacancy rating is basically zero only time it spends vacant is if I was slow on transitions. It has good cash flow and the appreciation is fantastic. When you're talking Utah County there's a definite price break on rental rates between Springville South and Provo North which you'll need to account for when running the numbers.

    0Reply
  • Lindsay Wolfgramm
    New to Real Estate · Salt Lake CIty · Member since 2020 · 8 posts · 4 votes
    6y

    Hello, I'm a newbie!

    We've started looking in these areas (north UT/SL county) as well with the FHA option for our first hack. It's been super competitive in this hot market with these low rates. We're pretty set on finding a multi for our first investment, does anyone know of any areas of pre-con builds in the coming months that aren't in the millions?? We understand these are hard to come by, and quickly picked up. We're willing to wait a bit.

    2Reply
  • Logan M.
    Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    6y

    I would do a 5% down conventional loan. Most other programs have some type of strings attached. The truth is first time home buyer programs are typically not just for first time home buyers but is based on ownership within so many years. You can get different types of loans like Utah Housing 0% down but I would only do that as a last resort. You may also want to look into some local credit unions because they can be very competitive. 

    The other thing I will add is that most of these programs have income limits and they usually base it on the number of people living in the home. With two people the income requirement will be really tricky because it may end up being more difficult finding a home within the income requirement limit. That is usually where you run into issues. One little trick I have found on the more affordable side are condos that can't go FHA because typically they are a lot cheaper and then you come in with a grant which makes up almost all of your downpayment. That also sets you up to have a potential rental in the future with little to no money down that you might not have to repay. Doing this on a single-family home would be really hard in Salt Lake or Utah County, not sure about up North though.

    1Reply
  • Ray Loveless
    Investor · Highland, UT · Member since 2018 · 70 posts · 23 votes
    6y

    @River Luce for me the cash cow if utah is Tooele.  Where else can you get a property at the midwest price and have the appreciation of Utah (I believe that county was the one of the highest if not the highest appreciating county in the state last year). I'd be interested in other's thoughts on this.
      My Brother, @David K. Loveless, a cpa in the area was able to get into a owner occupied rental(if you live in it for a certain number of years) with a government grant but I don't have all the details.  You'll have to reach out to him.  Good luck.

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