All Forum Posts by: Doug Quist

Got an email yesterday that said:

     "New Members Near Salt Lake City   
    There's a total of 16 new members on BiggerPockets who are within 100 miles of you."

Which is where I live.  I click on the link/button labeled "Meet Members New You" and get NOTHING!

TOTALLY LAME!

Quote from @Don Spafford:

Hey @Doug Quist we're always here to help with any of your needs in East Idaho. It was great to meet with you and your son.

Agreed.  Fun and tasty to meet.  :-)

Seems like not much action out that way.

I'm interested in connecting with someone who has done a subject-to deal in South East Idaho in the last couple years.

I'm under contract to buy a house where the sellers were pretty "motivated" to sell.  They lowered the price a couple times and then I offered another 6.9% below that and we have a deal.

I suspect they have a mortgage at 3.6% based on when they last got financing and I REALLY would love that rate, so much that I'm open to re-doing the deal much closer to their most recent listing price if I can get the house subject-to the existing mortgage and give them cash for the difference.  Happy to pay the realtors the commissions, etc.

I'm looking to connect with anyone who has done a subject-to deal in SE Idaho, or if not there, at least in Idaho.  Thanks!

Quote from @John Karg:

Just in case, you might want to first check with the seller if their mortgage is assumable. Most conventional loans are not, but FHA, VA and USDA loans are. It's certainly a much simpler and safer way of doing things.

Will do.  Good point.  I just assumed (yeah, I know) it wasn't since, as you've mentioned, most loans aren't.

I've never done a SubTo deal, but I'm thinking about proposing it to a seller in Idaho. Any tips, tricks, cautions, etc. related to this state? I have a STR in Idaho near Yellowstone, but this would be an investment property or someplace for a member of my family to live.

I'm going to be buying a house in Rexburg, Idaho with my daughter and son-in-law and was looking to connect with any locals.  After a year, might partner with them for another house and then rent the first, then do it again when my SIL graduates.  Thanks!

Quote from @Stuart Tollison:

Just recently relocated to Salt Lake City from Indianapolis for my job. 

Thanks in advance for any insight!

Welcome to the area.

We moved here from CA when my father started his fight with cancer in 2020, which he lost in less than a year.  My wife, though she knew the area and went to college here, wasn't sure she wanted to move back, but she is loving it and happy to be away from the congestion of the Sillycon Valley.

We started buying a condo for students in 2007 and just prior to COVID lockdown, sold it and 1031 exchanged it into two fourplexes.  Since we have bought condos, more fourplexes, a SFH and a duplex.  We stopped in last 2021 to allow for a pause / stabilization and are now doing some build-to-rent.

I feel this is, now, a harder market to get great cashflow, but we have seen good appreciation and good rent growth, so eventually more cashflow will come.

Happy to meet up for a Diet Coke and chat.  I'm in the Salt Lake Valley and, again, welcome to town!

Quote from @Carlos Ptriawan:

Quote from @Doug Quist:

Quote from @Osazee Edebiri:

Quote from @Doug Quist:

My old house went from $4M to $5M in the three years since we moved, but my portfolio that I purchased with the net proceeds has done WAY better both due to better appreciation coupled with leverage and it is cash flowing as well.

Wait your OOS portfolio has performed better than one South Bay Area house that appreciated 1 million dollars in 3 years?

Wild statement. 

I feel like that seems to justify buying a property in the Bay. Many people knock buying in California, but when we go through these forums I hear so many people say they used proceeds from selling property to create solid performing portfolios in other states. 

We bought a $1.75M house in the South Bay in 2008. Did a massive remodel that added 800 sq ft in 2016 which cost approx. $750k and then sold it for $3.9M Zillow says it is now worth about $4.9M. That was great, but VERY expensive to "get in". Of course, we started with our original house in 1995 at $500k, traded up a few years later, traded up a few years after that before we got the final house. The CA has was 25% LTV, so not much leverage.

I checked your number and this is where it gets really interesting, so basically a $2.5M house in 2010 era, but in 2023 is "only" $3.9-$4.9M :-)
In dollar value it's incredible, but in term of gross IRR it is like only 7%-8% IRR. I guess most luxury homes in bay is almost hard to exceed 4M price level LOL.

Typical San Jose house that was 300-400k in 2009 , is now 1.1-1.2m in 2023 so it's more like 16-17% IRR. 

But yes your execution is perfecto. Congrats !

For a more pure IRR calc, you'd need to take the 2008 purchase at $1.75, add another $20k invested to remodel a bathroom in 2013, add another $750k investment in 2016 and then the sale at $3.9M in late 2020.  I won't run the numbers mostly because I didn't buy it for IRR, but bought it for the awesome cul-de-sac, the 1/3 acre lot, great schools, quiet neighborhood, SWMBO wanted a swimming pool and a place to live for my family.  Oh, the orange tree was sweet (pun intended) too.

Quote from @Carlos Ptriawan:

Quote from @Doug Quist:

Not quite sure why @Carlos Ptriawan feels that a landlord for multi-family is more of a headache than being a landlord for a single family.  I have six fourplexes, a duplex and a single family.  The single family has been more hassle for me.

in bay area if we purchase multifamily, we have to follow city regulation and rent control that's very restricted. The same rent control etc doesn't apply for SF.  Also SF appreciation has lot more appreciation than MF.

 Understood.  That is why I will never buy property in CA again.  I've sold all my properties and all my businesses and look forward to never file another CA tax return.  I think 2024 will be my last year.

Quote from @Quinell Dixon:

I have a property in Salt Lake City that I am wanting to rent out. I am going to be relocating to another state and I want to know how I can understand how to analyze and see how I can rent my property, and I want to buy another property to live in and see if I can afford to do both. Any calculators, software, or anything that can help me do this task? 

Agreed you should use the BiggerPockets calculator and since you already own it, you should have a good handle on the expenses.  I'd expect insurance would go down a bit since you won't have personal property in the house (be sure to REQUIRE the tenants to get renters insurnace).  For rents, BiggerPockets can help or you can contact a few property managers in the SLC area to understand both what they will charge to manage it for you and what they feel they can rent it for.

I'm currently looking at a seller-financed deal in Utah Valley and have asked my property manager to estimate rents plus I'll use BiggerPockets rent estimator and compare.  I'll probably go with my PM's estimate since they are already renting several doors for me already.