Hi all,
I've been looking closely at the different broad Utah markets and am curious to see if I'm on-target with any of my assumptions. I'm trying to get a general overview of each major area in Utah so I can start narrowing my search for a good area for house flipping and eventually for multi-family rentals.
The areas I'm most interested in investing are Ogden, South Utah County, the Provo-Orem area, and potentially Logan. Let me explain how I see each market so everyone can chime in/help correct me where I'm mistaken.
Utah County Pros: Orem is essentially bought up from a raw-land perspective so it's unlikely to be a bubble. High demand, limited supply. Provo-Orem area has lots of college students so rental rates are supposed to be great. If you can stomach the competition it seems to be a safer bet despite high prices.
Utah County Cons: Tons of competition. South of BYU is notoriously picked over. Good properties go fast and it definitely seems to be a seller's market right now.
South Utah County Pros: Cheaper properties and less competition. I've heard that South Utah County has good rental rates as well despite being a bit more rural. I've heard that South Utah County is commuting to Utah County for work in a way that is similar to how Utah County commutes to Salt Lake City. This gives the area a more positive outlook because despite being a bit more rural, there are still plenty of jobs. The area seems under-rated and under-priced currently to me.
South Utah County Cons: There are the normal cons that come with more rural real estate (appreciation is less, rental rates aren't as strong, etc.), but the area is supposed to be improving.
Salt Lake County: I honestly don't know much about the market conditions in Salt Lake City. You've got pockets like Sugarhouse that are booming right now and other areas that are a little more risky and run-down. I'd be interested to learn more about this area from anyone who is investing there currently.
Davis/Weber County: Similar to South Utah County - less activity and cheaper prices. I've heard Ogden is actually a very good market right now. I understand south Ogden can see some more difficult tenants and higher crime rates, but I've heard it's a great place to invest. From what I understand, the cash-on-cash returns in lower-income markets is better if you're willing to put up with the unique tenant and repair challenges.
I'm curious to see if you agree/disagree with my perspective. Again, I'm just trying to get a high-level perspective of what markets to consider in Utah and any direction is appreciated!
