All Forum Posts by: Aaron Knoll

Hi Brittany -- I'm interested in buying and holding nice A- properties that can cash flow. Particularly in areas near the U, Holladay, Sandy and Draper. If you have any completed flips in good areas, or for some reason the home isn't quite ready for the MLS, drop me a note!

Really good areas: Upper Avenues, Foothill, Harvard/Yale, Federal Heights, Olympus Cove, east Holladay, Emigration Canyon

Good areas: anything east of 1300 E with a few exceptions, 9th and 9th, Sugarhouse, West Capitol / downtown, Millcreek, Cottonwood Heights, Sandy, Draper
OK areas: Murray, Taylorsville, South Jordan, Riverton/Bluffdale/Herriman, anything in the Great Mormon Beyond (Utah and Davis counties), Liberty Wells in downtown

Bad areas: West Jordan, Midvale, Rose Park (despite what people say), anything west of State St. and north of 3300 S

Really bad areas: South Salt Lake, West Valley City

For investment: cap rates pretty much suck across the board, but deals can be had. What sort of properties are you looking for?

How close to the University would you like to be? What's your budget? Year lease or short term?

I might be able to rent you a ~2200 sq ft single family 4/2 for $2400, in the Foothill area right next to the University (assuming we close on time!). I can also do short term-lease (3 months then month-to-month) for $3600/mo.

I also have a 3k sq ft 4/3 in Sandy, right next to the Cottonwood Canyons and ski resorts, for $2k/mo / $3k short term, with walkout deck, views and hot tub. Availability TBD.

It can be done, with a few caveats. The biggest problem is that a lot of nice, large homes are in great neighborhoods with high-end tenants, but those high-end tenants are relatively rare and the house can sit vacant for a while. Also, high-end tenants can usually afford to buy and are just waiting for the right circumstances -- thus it's uncommon to have leases longer than a year anyway. In contrast, for lower-end properties a lot of my tenants would rent just as a matter of course, and ended up with a tenant staying in my house for over 5 years. 

My tip: for these larger high-end properties I've found that short-term leases work better, and I can charge more. But of course it's more risky, and requires you to more actively manage your property. Vacancy is bad, period. The purpose of investment property is to make you money!

I'm going to try and make this... would be great to meet some other SLC investors and get/share advice!

Does anyone have recommendations for good contractors / handymen in SW Utah? 

I'm looking at a property that needs wallpaper removed, ceiling tile replaced with drywall, possibly electrical. Thanks for leads!

Very nice to meet you Cole. Where are you looking to invest? If it's around the Cottonwood Canyons area, I might be able to help out. 

I'm considering vacation/investment property in southern Utah and could use your advice. What sort of cap rates do you see in the vacation rental business? What do you do for remote property management? Do you use airbnb, vrbo, etc? What are your strategies for "buying right?"

Thanks!

Whoops -- by "recapture" I actually mean "get a check back from the IRS for the depreciation I should have claimed"... not sell my property and have to pay depreciation recapture!

Can anyone recommend a good accountant? 

To make a long story short: I landlord for 5 years without realizing depreciation was non-optional. I'd like to file an IRS 3115 this year to try to recapture at least some of that, if possible...

Thanks!

Hi Ron,

Thanks for this. 

I think you're right. If the auction has been scheduled, it de facto belongs to the bank and there's nothing I can do other than win the auction. I'm not sure what the occupant's situation is, and did not pry (mostly out of respect). He mentioned HAMP, and only said he would call me back if things did not work out with his attorney. But by then it would probably be too late anyway.

It would be great if I could have the owner sell the home to me for X which would be the outstanding balance of the mortgage plus 5% (assuming those numbers work), do the title work and pay off the bank myself. But obviously that won't work if the bank owns the property. Does that approach only work for pre-foreclosure properties?

I'm learning this as I go, trying to figure out what sort of deals can be made with underwater owners. 

It sounds like I need a lawyer and a friend at a title company.