Utah Investors - Are you buying properties on 15 yr mortgages?

[Jeremy Baxter]

Hi all! While listening to last weeks episode on "7 paths to financial independence," I really liked the concept of buying one property each year for the next 15 years and putting them on a 15 yr mortgage and taking a draw on the equity once they are paid off as a sort of tax free income. Rinse and repeat. My question to you experienced Utah investors - are you able to find (create) a good enough deal in our market that will cash-flow or at least break even (considering all maint/vacancy/capex/mgmt costs) on a 15 year note? If so, I would love to hear the "deep dive" sort of details, or as many as you are willing to share. I am a new student to the art of real estate investing and have only been living in Utah for 11 months, so I still have a lot to learn about our market. Thanks in advance!!

[Drew Whitehead]

With market prices being so high, I've shifted my focus from rental properties to flips for the time being. I can buy houses low enough that I can make up the margins in flipping and selling but I can't make those same numbers make sense for rentals. I tend to have a higher expectation of return on my rentals and I don't want to break even or even have a small percentage of return. 

I'm closing on two flips next week and one of the ones that I am selling turned out fantastic. I didn't even have to list it on the MLS so I was able to save $40k in realtor commissions. That being said, before taxes I am netting $180k on one house. The next one should be roughly $120k and so on. The margins are there if you do it right and with my architect background I am able to bring unique and custom design to these houses that buyers have expressed as a 'breath of fresh air from the traditional flips'.

That is what I am seeing at least. My 2 cents...