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Updated over 3 years ago on . Most recent reply
Anyone actually buying rental properties in Utah and cash flowing
My wife and I have flipped homes in Utah along the Wasatch Front for a few years. We were never able to find a home that we could just BRRRR, due to lending requirements vs income, or lack of ingenuity / knowledge. Since then we've bought a home and are hacking it. Basement ADU covers our mortgage in our 2019 build. We now are in a position that we could possibly buy, but I'm looking all over Idaho (because we have family there and are familiar with it) and not finding but analyzing lots of on-market properties.
My question is, how on earth are people buying in Utah and getting any decent cash flow? My dream for years has been a 4plex I could drive by and check on without necessarily managing it, but I'm not seeing how people can rent for $1200-1500/unit and pay $850-950k for a 4plex and still manage to cashflow in any decent kind of way? Like there's a 4plex my wife and I used to live in in Pleasant Grove. It's not for sale. But the zestimate on it is 875k, the rent income estimate on BP is 1375/mo per unit. 2br 1ba 1100sq ft units. With 5558 % repair/capex/vacancy/pm it's only cashflowing $300/month ($299). https://www.biggerpockets.com/...
Are people okay with these numbers? I'm really curious. Is it just me that this is too risky? How could someone like me with gross income of roughly 6500/month possibly get a deal in an area like this?
Most Popular Reply
I think in most cases, people are buying now for appreciation. Which I think is very risky. People can put a large down payment to make it "cash flow" but the ROI would be low, and for me, not worth it. The only other way to make it work is a house hack. Or maybe with a BRRRR. But I'm with you, I prefer cash flow at this point in my path. Once I have a large amount of passive income, then I can look for maybe more appreciation. I'm currently exploring other new, innovative options for a low-cost, high-quality new construction option. If it works out well I just may start building everything new.