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Updated over 4 years ago, 04/05/2020
Investing in Provo, Utah
My wife and I plan on purchasing our next investment property in four to six months, and we are looking to invest in Utah. Provo, Utah has caught our eye. I was wondering if anyone has had any success investing in the Provo area. If so, please let me know if there is anything about the market that we should keep in mind while evaluating deals.
Also, we would like to start building our team, so if you are a realtor/lender/property manager in the Provo/Salt Lake/Park City area, please feel free to message me. Many thanks.
Provo is a fantastic area to invest! The population is expected to double in the next 15-20 years. There is a large number of students needing rentals due to BYU and nearby UVU. A lot of tech companies are moving to the area as well.
I have heard great things about Reeder asset management if you are looking for property management.
Seems like Multi units go at a premium in Salt Lake, Utah and Davis county. However I still see them cashflow day 1 for the most part.
There are some properties with legal ADU units already in place in Provo. You also have an opportunity to add them in some areas such as A overlay zones. Otherwise Provo can be known to be strict on renting mother in law apartments unless owner occupied.
- Cherie Orellana
Thank you, @Cherie Orellana! I really appreciate the helpful feedback.
@Jacob Fedechko - Provo is an incredible market like @Cherie Orellana mentioned in her post with some great information. What kind of investment property are you looking for? Are you looking for 2-4 units, or SFR, or 5+ units? Are you looking more for cash flow or for appreciation? solid cash flow is a little harder to get in the Provo market, but I really think the market will appreciate well. The population is growing a ton, jobs are plentiful and the economy in Utah is really diverse. I am not an agent or anything, but I run numbers on apt deals a lot and if you ever have any questions about anything you are looking at in the provo market I am local and would be happy to give any insight I have. Good luck in your search. It really is a tremendous market!
Thank you, @Casey Christensen! Your feedback was very helpful. For our next deal, we are primarily interested in a SFR or 2-4 unit in a nice area, and we are willing sacrifice some cash flow for better appreciation (assuming that cash flow is still positive). I think we will be ready to invest in 5+ units in another year or so. Will definitely reach out in the near future!
Hi Jacob, I hope you don't mind my jumping in on your post! I'm interested in this market too!
Be my guest!
Hi Folks,
I am local to Utah and don't live too far away from Provo. As mentioned above, it is a great place due to tech companies moving into Utah and close proximity to BYU and Utah Valley University. If there is anything I can do to help, please let me know. I only have one rental property but looking to acquire three this year. Maybe I can help you and you can help me learn some tricks of the trade? :)
Cheers,
Thomas M.
Hi Jacob,
I recommend avoiding aspen ridge property management. They manage a lot of properties in Provo and provide poor customer service.
Thanks for the tip, @Mitchell Hosford!
I'd actually recommend you avoid Provo itself. There are better deals in the surrounding cities with less zoning issues. The company I run manages 1,200 rental units from north Salt lake down to the south end of Utah County and out to Park City--everything from small condos to larger complexes--so we've been fortunate to see a good sample of returns. Provo has the BYU premium, so the cap rates are much lower and there is intense demand for investment. I prefer Pleasant Grove, Springville and a handful of other cities that still get good rental rates but stay under the radar so don't trade at such a premium. The reason the above posters are upbeat on Provo is really more a reflection on the Wasatch Front in general. The Wasatch Front is made up of several counties in and around Salt Lake and has seen incredible growth. You can get the overall stability of Utah County with better deals if you make sure to expand beyond Provo. The changes in the area are mind blowing: Utah's Last Ten Years
Super helpful. Thanks, @Jeremiah Maughan!
I would second what Jeremiah said. I would look at the markets south of Provo (Springville, Spanish Fork, all the way down to Payson). These are still developing cities and the growth is pretty amazing. Provo is older and the zoning is a headache. Orem is much easier to work with, just as an example.
Overall, Utah County is growing like crazy with the tech startup scene as well as larger companies that continue to invest in talent here (Adobe, Microsoft, Oracle, Cisco, etc.). I think we'll continue to see strong appreciation here for buy and hold investments.
Best of luck!
Interested in Provo as well as Orem. Thanks for all the input everyone. I'm looking into a student housing house hack for my daughter who will be going to school in the fall. Could be BYU - could be UVU...the applications are in, just waiting to hear. I like the market and know the area a little from my days as a student at BYU, but some things have changed. ;)
@Jacob Fedechko I'm curious what drew you to the Utah - Provo market from NJ? I'm also local to Utah, and have been considering investments here but the cash flow numbers haven't been working out with the initial properties I've evaluated. Granted, I'm still pretty new to RE investing so looking for cash flow over appreciation, but I'd love to hear your thoughts as well as anybody else here who has insight into our market.
Based on the trends I have been following (social/political/economic/growth), it seemed like one of the best places to invest (and live) for the foreseeable future. I have not run numbers on specific properties, but I am confident that good deals are out there. Building a team now to help.
@Jacob Fedechko There's a lot of truth to what Jeremiah said. It's easier to find deals outside of Provo. I wouldn't automatically rule Provo out, as there are always deals in any market. Provo can be especially good with off-market properties. I've helped a good number of clients purchase on-market or off-market multifamily deals this past year in Provo, as well as surrounding areas. 10%+ cash-on-cash return deals (our typical minimum) can be easier to find in Springville, Pleasant Grove, Vineyard, American Fork, and those cities tend to have more favorable zoning. For example, most areas in those cities allow for 4 singles per unit (if that's your rental strategy) whereas Provo and Orem properties/zones allow for just 3 singles per unit. Feel free to reach out - I'd be happy to discuss strategy, or walk through local zoning. Be happy to share the rental property calculator we use as well.
@Tyler Jackson I’d be interested in checking out that calculator! My wife and I travelled through Provo on our way to Havasupai for the hike. We had to stop and take pictures of the town, we were literally blown away by the place. Super interested in getting my foot in the door since I too have noticed the trends with the market and projections of appreciation. I will be following this thread closely!
@Timothee Brzozowski sure thing, send me a DM and ill share it!
Jacob I'm up just north of SLC, but you have a worthy goal! My team has a STELLAR 1-4 Unit investment property loan solution requiring only 15 percent, with no MI, up to a 4 unit. Just launched it last month, and it's ready to go. I'll shoot you a message and would love to connect.
Hey @Jacob Fedechko,
guess I'm a little late to this post, but perhaps my delay could actually come in handy. Can you share some of your interesting findings regarding investment opportunities in the Provo-Orem area?
I myself looking to invest in the area, but still haven't got far with mapping it. Any tips, info or referrals would be much appreciated.