All Forum Posts by: Logan McKay Zylstra

Hello! I am local and would be happy to help you with this issue. I sent you a connection invitation. 

Hey Matt! I'm in the SLC market so I understand the struggle. Obviously, cash flow is hard to come by in our market currently. Some of the rules used as a good rule of thumb are no longer feasible in SLC.

I would recommend continuing on your current path and keep getting additional properties under ownership. Utah is poised for a massive rent increase and even more appreciation. There are some other creative ways to increase rents around your property that are specific to each property.

Hope that helps.

Message me! The option I know about is a bit nuanced and easier to explain over a phone call. (Disclaimer- Not a mortgage broker, so I'm not trying to sell you anything haha)

Congrats! This is awesome news.

Inflation was just announced to be 8.5% (I think this figure is much higher). If we look at the last housing crash of 2008, we saw housing depreciate by 27% (differs depending on your source, I used statistics from the St. Louis FED), which didn't happen overnight and spanned about 4 years. If we divide this out houses depreciate by about 6.75%. 

If we look back to inflation of 8.5% last year, you are potentially losing more money last year than during the last downturn if you are holding onto cash.

While this isn't necessarily an issue for people who already have assets and are already wealthy, as their assets increased in value along with inflation. However, this proves to be a huge issue for the average American. Not only are they making less money than the year before if they didn't get at least an 8.5% raise this year (many didn't), but the bigger issue is that assets, namely homes, are more unaffordable. Inflation will only continue and rents are and will follow.

While the FED, has been extremely aggressive in raising rates recently, the government printed so much money during the pandemic that inflation is still inevitable. If you are waiting for the next downturn, stop. Take action today to get into your first home or investment property. If you keep waiting, things will only continue to be more unaffordable for the foreseeable future.

Following up, on your comment back to me. 

Deals with strong cash flow in the Utah market are not present, BUT if you house hack and decrease your cost of living I consider that a BIG WIN. Added bonus, think long term, rents are going to increase dramatically here in the next year which will then provide the cash flow that you are looking for.

Quick take: Anything worth doing is "hard". You'll see a lot of rejection, but I think the upside is there.

Best of luck Chad!

I think taking action is the most important factor in your situation. Also, it depends on what you are looking for cash flow, appreciation, etc.

With that being said, I love the Utah market and think it is easily one of the best markets in the country.

In the wake of rapid levels of appreciation seen all across the country, it has caused me to reflect on the state of the market quite a bit. Increasing interest rates adds another layer of complexity to that. My worries are that hyperinflation and wages will not be able to support these home prices will kick us into a very near recession.

I cannot speak on what is happening in the rest of the country, but being in the Utah market I do want to give my thoughts (and hear what others have to say). 

For those who are not familiar with Utah and Utah's housing market; historically Utah has been very affordable. However, in 2020 and 2021, we saw 19% and 28% (2nd in the nation) respectively. As it stands, cash flow is hard to come by in the Utah market because rents have not caught up to where home values are currently. While the continual exodus of Californians to the state only perpetuates increased home prices.

With that being said, in recent years Utah has been ranked as the #1 economy by various outlets. Led by the rapid growth of the tech industry (Silicon Slopes). 

With institutional investors scrambling to get a footing in this newly established market, I think prices will continue to creep up in the state. While rents will continue to explode to catch up to the current market conditions. With the possibility of the recent spike in interest rates kicking us into a downturn, I still believe that now is the time to take a calculated risk investing in real estate. Considering all, while I hope that this appreciation slows, I feel very comfortable in the Utah market and believe that it will fair well in a downturn and show continual upside in normal market conditions.

Disclaimer- I am not saying we are entering a downturn, just sharing my hesitations on the current real estate market.

For those interested in a Utah economic report, I have included a link below.

Gardner's Outlook

I am currently under contract in my first house hack in Provo, Utah. I was wondering if anyone knows of any tax credits or any other benefits that I can apply for?