Salt Lake Area Investing

[Andrew Schlessinger]

Hello BP Friends!

I'm a small investor in Baltimore, Md (4 rentals and counting!) and have a friend who is looking to invest in the Salt Lake City area, so I wanted to get a pulse for the rental market. He's not sure what type of SFH he's looking for, but he's constrained by finding something in livable condition, in a middle-income area.

I have lots of questions, but I guess I should start with a few basics:

1. What are some of the best middle-income areas to invest in (Ogden to Provo)?

2. What kind of investor purchase prices are you looking for SFHs?

3. Are you achieving the 2% Rule or better in these areas?

Thanks!

[William Hochstedler]

From what I understand, @Aaron Mazzrillo had a particularly bad investing experience in Ogden and has been vocal about it here on BP.

Ogden is, by most counts, the third most dangerous city in one of the safest states in the country. 

There is no doubt that Ogden has some problem neighborhoods.  And the tricky part is that these neighborhoods look largely the same as much safer neighborhoods because they are limited to only a few blocks scattered throughout the city.  It's not like the major metro areas where you can go through these neighborhoods and see readily apparent indicators of high poverty/crime areas (boarded up buildings, excessive loitering, etc)

This is why it's important to have someone who knows these areas on your team.  I've seen plenty of mistakes, even from folks out of Salt Lake who misjudge a property by using comps from two blocks away or not implementing appropriate property management strategies.

A final note:  Ogden's Good Landlord program prohibits renting to sex offenders and recent felons.  Some landlords elect not to participate in the program to get much higher rents from these people.  This may have been the case with Aaron's experience.