All Forum Posts by: Jenny Billings

Thanks everyone for your input. As it turns out, I have met all but one of the tenants and none of them are miners. So that adding another plus, I am moving forward with the purchase so long as financing etc go as planned. I'll send updates as they are available.

HI

I'm new here to BP and loving all the info and advice. 

I currently own 3 rental properties in Salt Lake County Utah (townhouse, duplex, condo) and I am looking into bigger and bolder RE. I am under contract on a 6 plex in Price Utah and need some advice.

After crunching the numbers fairly conservatively I come up with an annual cash flow of 7,896. this is an average ROI of 20%! WHOA right? I've run several different scenarios and I cannot get this looking worse than 2% ROI and that's with a 36% vacancy rate which would mean this town had gone ghostal.

This number includes all management and maintenance being done by a property manager. So basically I sit back and collect a few extra hundred bucks a month from my office 100 miles away. 

Here is where I'm stuck.....This particular area has a not so diverse economy. Their main source of income and jobs is in coal mines and other natural resources. They are the county seat of that area but that's not saying much. The population is about 8400 and staying steady. Employment comes from either the mines, government, a local extension of a College University or a local hospital. This town has not suffered a lot of economic downfalls or hardships, but has not and does not grow very quickly. I expect to gain very little if any appreciation on the property.