Buying an expensive home in Utah

[Aaron Knoll]

I'm interested in getting into SLC area real estate investment, and would greatly appreciate advice from those who know the area. 

1. Is now a bad time to buy in the SLC market, in general?

2. I have an offer on a nice 5800 sq ft house in Olympus Cove for $480k which probably needs $50k of work. It currently rents for $3k / mo but that could go up. It seems like a reasonably good buy to me, but I note the rent is way below the 1% rule. Also, I'd have to finance this by mortgaging my current home in Sandy (which I own in full, worth $320k). Other homes in the neighborhood go for far more ($600-700) for less square footage -- I suspect this one stayed on the market because it had an odd basement and needed some work, but the fundamentals look good. 

I'm getting it inspected next Tues and want to know if I should back out, or if that seems like a good deal?

Thanks if you have recommendations!

-Aaron