All Forum Posts by: Bryce Till

@Bill Gulley Ha! just buy and hold. Would look for a year lease.

I'm not that worried about financing the deal at this point. Was planning to put 20% down.

BP!

I have this area I think will be a great area in 10 years. Close to down town in my city, new public transportation (trains) and new corporate business like Target, Walmart, Wendys and Lowes have new business in the same area. The area has a nice urban feel to it. New boutique coffee shops and restaurants. Lots of apartment building development.

Anyways, I find a listing in this area for about 1/2 the usual price, great pictures the whole place redone, wouldn't need any work. I think! "This is my first deal!!!".

Details are:

SFH 3 Bed 1 Bath

Listed $114,000

Purhcase Price $100,000?

Rent $900 to $1100

The catch is the house is on a busy street and across the street from a strip joint! It is also squeezed in the middle of a BBQ restaurant (good food) and a large warehouse. By the way, in my area, numbers like this are REALLY good.

I like the deal I am just worried about finding responsible tenants that are willing to live so close to a strip club. Im trying to think of the potential tenants and Im not sure who they would be. Not a family or young professionals. Would have to be a single blue collar male?

Anyone have any experience with properties not necessarily in a bad neighborhood, just next to a bad business?

Do you take a deal with good numbers and great long term potentials but risky tenants?

Appreciate your ideas

James! Welcome, If you do start whole selling place me on your buyers list.

Good luck and welcome to BP!

Jacob G,

Thanks for your comments. Considering your comments what area or strategy are you implementing in SLC to find deals?

Regarding the duplex, I live in a condo down town and sub lease one room. I pay about $600 cash out of pocket for all my housing expenses (mortgage, cable, utilities etc), not a bad deal.
I'm not really interested in moving into a new duplex. but would love a deal that rents for 1800 and sells for 220k. I just haven't found one.

Thanks,

Bryce

Thanks for the responses.

Jon, I would manage the property myself. I have yet to find a property here in SLC area that even comes close to 6% cash on cash. I'll discuss that more later in this post.

Josh and Rafael, Im going to find the answer to all of your posts and come back to this forum.

George, thanks for your comments. In the SLC area this is the first deal that I have even really been able to consider. Granted, I have only been looking through the classifieds and MLS but I have yet to find a SFH that would even meet the 1% rule. I would prefer to find a SFH. However, the numbers just don't make sense in my surrounding areas. Take a two bed two bath in the Sugar House Area. Best case scenario I get $1800 a month rent. Putting my purchase price at $180k. The two bed two bath is going somewhere from 250k to 300k. Homes in Sandy/Layton that rent for $1200 are going for $200k+

If this doesn't work I will give direct marketing campaign a shot. However, after looking in the SLC market for several months now I'm starting to wonder if in the SLC area prices are just too high, with rents too low.

Here are the deal details 1 bed 1 bath condo. 800 sq feet. The unit doesn't need any updating. Best part of the condo is location. Great location, I've lived in the area for 7 years. Pretty confident in the $ rent amount and limited vacancy. Price 80k Closing costs 2k 20% down Cash out of pocket $20k Mortgage 62k Taxes $1200 HOA $170 Rent $900 50% rule - $450 HOA $170 Taxes $100 Mortgage $350 Profit (loss) ($170) Considering this is my first deal I like the fact that the purchase price is relatively low, the maintenance should be manageable with it being a condo, and the property is within minutes of my primary residence. So, with the above numbers this deal leaves me with $320 a month for expenses. This deal is profitable with 30% going to expenses. Do you do this deal? Thanks you for your opinions!

Thank you all for you comments.

I have been away as I have actually just finished my first DIY in my current residences. I did new paint and laminate flooring, it went well but as you would have guessed took longer than expected. I did laminate flooring from LumberLiquidators and installed it myself. Looks great and I have heard it should hold up pretty well.

@Jason Fraser and @Ken Fricke thanks for your comments. I will give Melody a call and also have plans to join the SLCREIA

Since this post I have continued to scour the internet for deals on classifieds and on the MLS and I haven't even come close to finding a property that comes close to the 2% of 50% rule.

I had one lead on a 1 bed 1 bath that asked $65k, the numbers worked until I found out an offer had come in at $102K

Looks like I'll need more networking and more creative ways to find motivated sellers.

Starting to think the SLC market may just be too high right now for easy deals.

Dear BP community!

Really excited for my first post on this great site. I'd like to start with a quick background, explain what knowledge I have and then ask for everyone's help on finding my first deal!

Background:

I am 25, live and work full time in Salt Lake City, UT. I currently live in a condo that I bought last July.

My 5 year real estate goal is to buy and hold enough SFHs that are all fully financed that generate passive income of $1500 a month.

Experience:

My real estate experience is the property that I live in which I sublease a room and used an agent to buy. Additionally, I have listened to every BP podcast out there and spent some time of the forums. I come from a finance and investing background and know the very basics on real estate valuation (2% and 50% rule) I have lived in SLC for 7 years and have a basic idea of what rents will be.

My First Deal:
I am leaning towards buy and hold SFHs rentals within an hour of down town SLC. However, I am not sure the best strategy to find a property where the numbers make sense. So far through classifieds, MLS and every other online free resource I haven't found a deal in the 1-2% range where the numbers work.

So, Do I...

1. Direct mail delinquents?

2. Go after short sales?

3. Drive for dollars?

4. Continue to view the MLS?

5. Ask an Agent?

Unfortunately, I'm not sure I have time for all of these. I need to specific and targeted on how I spend my time finding my first deal! Let me know what you would recommend.

Thank you,
Bryce