All Forum Posts by: Logan McKay Zylstra

@Tyler Vargha.  You are unlikely to find a duplex that cash flows. If you can house hack a 4plex, cash flow numbers will be better.

I love it. Good luck!

Connect with my brother, Brock Zylstra on LinkedIn. He’s been posting some interesting stuff on our market. Him and his team did just shy of a billion last year.

Due on sale clause is very unlikely as long as you are current on the payments. I have a lawyer I am happy to recommend for the contract.

With the appreciation we saw here, it is unlikely that your uncles house is worth less than the mortgage that is on it. In most cases, the seller retains the equity in some way.

For example:

Your uncle’s outstanding mortgage balance is 50k, but the house is worth 100k on the open market. 

Your uncle would net: 100k - 6k (realtor commissions)- 50k (mortgage payoff) = 44k

Couple of options from here, you would need a down payment of 44k, get a new loan for the remaining 44k to pay your uncle, you can do subject to and have a balloon payment set for 2-5 years when you can qualify, or you uncle wants to be generous/doesn’t want to hassle with selling on the open market and you walk into 44k of equity.

Hopefully this makes sense. Happy to walk you through the process or answer anymore questions.

If you are looking for cash flow, the Midwest is definitely the way to go. 

But I agree with @Conner Olsen

While you may not get the cash flow here, you will see more appreciation and rent growth. Another thing to consider is that you won’t be paying rent and living in the property. One of my clients just closed on a property and is breaking even while living in the home. When he moves out he’ll cash flow about $700-$800.

But again, if cash flow is your immediate goal, I wouldn’t recommend investing here.

Like Carl, I used Stringham. I would recommend them as you can go in person or online.

@Eli Hibbert

Hey man. With the current state of the market, breaking event is very hard to come by. You also have to factor in the 6.7% interest rate that we are seeing today. The better expectation is to try to mitigate your house expense. Look at the difference you’d be spending on rent vs house hacking. One of my clients was able to cash flow day one, but that took us months of searching so the deals are there, but expectations should not be there.

I was able to basically break even on my first house hack and then I lose about $1000 and my second house hack but now I break even between the two. I plan to move into a condo next and let the rents from my two duplexes cover the mortgage on that one.

Happy to walk you through my personal story and what my clients are seeing. 

I used a conventional loan for my first property and FHA for the second. All those points are valid. The first issue I was able to sidestep was by writing a letter talking about moving closer to my job, a step up home, and moving closer to family. The second was just able to benefit from appreciation here in Utah. Third, likely can be sidestepped using that letter and if your lender vouches for you just wanting to move.

Hope that helps

Amy, exciting stuff. Yeah, prices here have increased rather dramatically over the past 3 years. One thing to remember is that you can use 75% of rents in a 2-4 unit to qualify for the mortgage which would bring up what you are able to qualify for. With that being said, I don't think you would be able to qualify without a cosigner.

I know of a few pretty cheap apartment buildings in SLC where you could probably come pretty close to breaking even after renting out individual rooms. Just so you know, STRs are banned in SLC, (but it still goes on because of a few reasons).

Quick tip:

Provo and SLC are pretty far apart looking at mileage. While traffic isn't that bad definitely something to consider (coming from a native Californian). Places like Draper or Lehi are great middle ground if you want to be closer to the city, but working in the Provo area. Orem/Vineyard are awesome areas for young people as well.

Hey. I specialize in condos and have helped a few clients house hack in Salt Lake County.