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Updated almost 7 years ago on . Most recent reply
![Stephen Hall's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/888556/1621505034-avatar-stephenh105.jpg?twic=v1/output=image/cover=128x128&v=2)
Good Buy? Getting Cold Feet!
Hi All,
I am new to RE investing. We recently moved out of our first home in Lehi and bought two new properties in American Fork. One home is our primary residence (that we already live in) and the other is our first rental property that we are set to close on at the end of this month (it's a new build that we designed). The closer I get to closing, the more nervous I get.
Being a brand new home, I don't expect to have issues finding renters or having many expenses, but after setting aside ~$150/month for expenses/repairs/rainy day, I am really only banking on appreciation and mortgage pay-down. Is this a stupid plan? I always read on BP about how people are cash flowing crazy amounts, but I just don't see how you do that in Utah unless you are putting 50% down or have the right network to find under-market buys.
This is all part of a passive, long-term retirement strategy, but I only had to put a small amount down, so I can still technically back out up until closing for a relatively small loss. Thoughts?
Most Popular Reply
![Blair Poelman's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/155720/1621419944-avatar-bpoelman.jpg?twic=v1/output=image/cover=128x128&v=2)
I wouldn't back out of the closing if I were you. I'm in the middle of a townhouse build at $220k with a bunch of little upgrades - started in November. Same floor plan in the same puny little development is now selling at $250k before upgrades. If nothing else, you may be able to flip the thing pretty much immediately and at least get yourself a little bump on it.
Generally speaking, we are NOT a cashflow market, but don't get too discouraged about the cashflow situation here in the UC. Positive cashflow above 5-6% in Utah County with SFR's is really, really, really tough to get. So if you are getting more than that you are better than most of us, or it means you have tons of cash and little or no debt service, or it means own free and clear, or it means you're an amazingly efficient developer or builder, or maybe the real estate gods have shined down upon you and led you to a killer deal that is getting you more money than almost everybody out here right now.
There are cashflow deals out there - just very few and far between, at least for now.