All Forum Posts by: Mercedes Smith

Hi everyone! I'm considering purchasing a fairly high-end condo in a resort town. It is a two-story condo with two bedrooms and two bathrooms. Downstairs (450 sq ft) is one-bedroom with attached full bathroom (along with a balcony that has a hot tub). Upstairs (800 sq ft) is one bedroom, one bath, living room, laundry, full kitchen, another balcony. Both upstairs and downstairs bedrooms and living room have great views.

It's occurred to me that by adding a door to the interior stairs (the units would share a very small interior entryway before entering their specific unit) that I could make this into two separate STR units when preferred: a studio downstairs (I'd add a mini-fridge and a microwave perhaps) and a proper one-bedroom with full kitchen upstairs. (Or leave the separating door open when booked for a two-bedroom.) There would be no alterations to the exterior entrance of the condo. I feel like I'm doing something illegal, but I can't find a rule against it.Has anyone DONE this?

Seems to me this option of splitting the condo and essentially renting two one-bedroom apartments could make more money, and  be more flexible, than only renting it as a two-bedroom, however, I don't want to go through the expense of adding the interior door, mini-fridge, microwave, etc if you think it may not pay off. Thoughts?

(On a personal note, my husband and I are buying partly because we want to stay in the condo ourselves from time to time when it's not booked. STRs in this area rarely generate much cash flow, though the area is appreciating fast. I realize this is mostly an appreciation play and yes, we have adequate reserves if another Covid-level event strikes. Yes, STR are allowed in this building and there doesn't seem to be anything in the HOA rules to prevent my idea.)

Thanks in advance.

Yeah, the boilerplate language is not helping you. Get a contractor out there to give you a quote on correcting the problem. My guess is that it's not terribly expensive to correct. Good luck!

I'll chime in about finding deals off market -Anyone in the SLC/Utah area feel like most of the wholesale deals they get emailed to them are priced almost as high as the MLS?

One of the best ways to build equity fast is to live in a multi-family property and if FHA is the best option for you, take it! With only 3.5% down on a 4-plex you'll be building 4x as much equity as you would living in a single family home. This can be a great way to get started so that after a year you can move your equity into bigger properties. Good luck!

Given the very low levels of meth found -average of level 2.9, I think we can assume meth was only smoked there. My understanding is that actually cooking meth, i.e. a meth lab, would test between 50-100. I don't see how I could be sued if legally I do not have to disclose once it's remediated and if I can literally prove it was remediated to <1 which is the legal limit and recorded as remediated with the county. Please if anyone has more knowledge than me, correct me if I am wrong.

The insurance issue is a good question, I will look into that, thanks!

Hi everyone, I have a condo under contract that just tested positive for meth. 8.3 over 3 samples, so relatively low contamination. Where I am in the state of Utah, once you have remediated the meth you no longer have to disclose it to anyone -not when you sell, not to future tenants. Once it's remediated the case is closed. 

My inspector tells me the biggest worry (besides the obvious cost of remediation and rehab!) is that the neighbors will talk. But with a condo in a C class neighborhood that has almost no owner-occupants, is that really a deep concern? And with future proof that it has been fully mitigated and certified meth-free by the county, it seems I would be protected?

First initial quote for mitigation (by a company recommended by my inspector) for these relatively low contamination numbers and the unit being only 850sq ft is about $5,000. The carpet and blinds would all have to be replaced, but they were getting ripped out anyway. It's also possible the remediation itself could destroy the laminate flooring, stove, furnace, and warp some or all of the cabinets, but my inspector says the odds are usually that only one appliance gets destroyed by the process. 

What do you guys think? It's an 850sq ft 2 bedroom, 1 bathroom that's in a slowly gentrifying neighborhood 5 minutes drive to downtown Salty Lake City. The management company tells me the building is a quiet community that rarely presents problems. The grounds are well kept and while the unit itself is dirty and rundown it is not in terrible disrepair.

Has anyone else in Utah (or another state where you don't have to disclose once it's mitigated) dealt with a similar situation? I am hoping this is an "opportunity" to get a lower price, but if its a total nightmare please tell me! Thanks!

I'm also interested to hear what the cost to build per sq ft ended up being? Thanks.

The higher up the mountain you are, the less inversion. You'd have to move to Park City to escape the inversion entirely, but even living at the top of the foothills in SLC  (i.e. the top of the Greater Avenues or the foothills along the east side, like Olympus area or near the Natural History Museum) will enjoy less smog, though those areas are generally VERY expensive (1M and up usually).

This particular case is for owner occupied. They insist they have the lowest rates in Utah for rental properties as well.

Yes, I'm refinancing with them right now. Call them up and see how you feel. Talk to one of the older gentlemen (Arni, not Morgan).