My options for a 6.5 bed 3 bath home for sale in nice Utah area?

Question

Hello everyone!I'm still new to real estate investing. I found motivated sellers who are wanting to sell their home in Utah. It's in a good area. It's 6 bd, an office, 3 baths and in good condition. It will need updating, cosmetic wise in most of the home. The roof and electrical plus hvac is all new. Also other updates have been done. They've had it for 5 years and do not want to lease purchase. They are selling it for 180,000 which is about what's owed on the property.I was thinking it would be a good flip into a triplex or duplex. what are my options as far as finding a buyer? Who should I target? Is it worth it?

Allen Sproul · Answer

There is a website Orem City publishes which provides a list of all the 'accessory apts' that are legal. http://orem.org/index.php/planning-zoning/accessor...Check to see if the address is on the list. From personal experience, it is quite literally near impossible to change zoning. In order to change from SFR or even Accessory Apt, you would need to be sitting on 1 1/2 acres of land and surrounding on all 4 sides by legally zoned, existing duplexes. Thes eare just 2 of the several requirements to change zoning.Having read through the city council meeting minutes when these rules were put in place, their goal was to control population density and increase owner-occupy properties, helping neighborhoods not get so run down and whatnot.Sorry for the long post. Just thought I would share what I have read and learned.

Jeff Rappaport · Answer

Let's start with a basic question - what is it worth? Have you done any comps on the property? The next question is would the sellers let you buy the property for what is owed on it? What I mean, would they allow you to buy the property with the debt that is already on it? What is the payment a month? What would it rent for? The big question is why would you want to convert it? I know you want to wholesale the property. You need to find out if it is really a deal or not. You can certainly email me and I can help you with it. Good luck!

Johnny Youssef · Answer

Thank you Mindy! I hope others would benefit from it!

Henrietta M. · Answer

find not

Kyle Kingma · Answer

Rezoning it might be difficult if it is a single-family area. Beware converting it without rezoning. Duplex and triplex will need two or three electrical meters and that'll be the trigger. Don't get too far into it without considering that the SF neighbors aren't going to be thrilled about a triplex rental next door with six cars parked all over the place. I'm here to help :)

Becca Summers · Answer

What is your goal and what is the sellers time frame? If you want to whole sale it is it a deep enough discount for a flipper? Or would you need an investor looking to buy and renovate? Or a retail buyer looking for a little renovation work? Or are you wanting to keep of yourself? There are tons of options with something that size.

Scott Bean · Answer

Hi, I live in Orem and invest in Utah as well. Not sure what the sq ft is, but That is a steal if there isn't anything fishy going on. Any liens? or other strings? Unless grandfathered in Orem does not allow you to turn a property like that into a duplex, triplex. You can turn around and rent it as a SFR, but as for duplex, etc. I'm afraid Orem won't allow it.

Jeffrey S. Breglio · Answer

my first question is a 6 bed, 3 bath home in a good area of Orem for $180K. Hmm. I'm a salt lake county investor, but that doesn't seem right. @Tim Mellor is spot on with the zoning. Very unlikely but you never know. For something like this, I'd recommend working with someone familiar with zoning, valuation, and that kind of conversion (if it's possible).Jeff

Tim Mellor · Answer

There is a really good chance the property isn't zoned for anything other than a single family residence. So unless it is in a neighborhood with a lot of other rentals, converting it probably wouldn't be easy. You would have to go to Orem City and request a variance to the current zoning. I would be happy to look at the county zoning to see what they have it listed as.I am an investor primarily and I also have my Realtor licence. Because I am an agent, I couldn't pay you a bird-dogging or finders fee, but if you are interested in partnering on a deal, I am very open to that. If that doesn't work for you, I also know other investors who might be interested and who are not agents.Please send me a message and I'll pull some comps for you.

Henrietta M. · Answer

Johnny Youssef's podcast was good. Honestly, you would have to be a very hard worker and very committed to go through with a few of his ideas.I really don't think I'm on his level or even that close yet. The hardest part for me would be the level of risk involved.