Investing in SLC/Provo - Building a team

[Nate Waters]

I have researched several areas and I have narrowed my focus to 3 potential markets. One of those markets I would like to explore more is the Salt Lake City to Provo, Ut corridor. I'm interested because:

• Identified as a favorable city for millennials
• College towns
• Up and coming tech center
• Good job growth - Provo
• Good job growth - SLC
• Stable and growing rents over the long term
• My family loves to visit Utah - (I invest for lifestyle and return - why have one when you can have both!)

I am a buy and hold investor that is looking to learn more about the area and build a team. I am interested in buying B or C properties in A or B areas (value-add opportunities) - SFR and Multi's.

What should an out-of-state investor know before jumping into investments in the region? 

Should I focus more in the Provo or SLC area? If SLC, what are the areas to avoid?

Any suggestions for investor focused agents? good property managers?

Thank you in advance for any information and contacts you choose to share!

[Becca Summers]

@Nate Waters great questions I can tell you've really done your research.

What should an out-of-state investor know before jumping into investing in Utah: We are cheap but lack of supply has pushed rent rates up so the rental market pricing is not inflated. There are a lot of luxury style apartments being built in the area to help with the demand and I think once they are all done there rent prices will drop which will affect the B class rental prices. Something that a California person wouldn't find "getto" a local wouldn't live in. When I work with buyers I always ask where a buyer if from when they are giving me their wants and need because my local born and raised buyers think the "getto" is really just areas that a home owners can't afford to upkeep their homes, they are still considered safe but scare the local buyers away. Where buyers from out of state know what a real getto is. With that said I would say there are only a few areas in Salt lake that are heavy in crime which I would avoid. 

Provo has it's benefits as the pricing is lower that SLC but the rent rates are also lower than Salt lake. Lehi  and American Fork are great areas as they are close to Salt Lake but cheaper than Salt Lake. If you can afford anything on the East side of I-15 in Salt Lake that area has more demand but a lot of renters are having to go to the west side to get the right rental vs purchase price rates.  

I hope that helps.