All Forum Posts by: Nick Elg

@Tate Siemer, you are a stud. Way to go for the big projects. 

I know one of the largest developers in Silicone Slopes and he has been doing 50/50.. Another guy I know pretty well is doing 50/50 too. 

Their perspective is they want to be 100% hands-off and get a return on their capital. Finding and Managing is 90% of the work so you should be compensated fairly too! 

@Jason Pehrson

Hey, we are just painting a 12 unit in Roy. The company is in Murray and was very affordable. We had three estimates and two were at like 14k but this company came in at 8k . 

I'd be happy to let you know how it goes with them. We are starting on the 30th due to the rain that is coming. Send me a message and we can connect and share notes. 

@Daniel Later

I am from bountiful too, so I had to reach out! 

Do they need to be in Ogden? I can refer you to the attorney we have been using. They are in Utah county but can help from wherever. He knows Utah law and can help from any location. Send me a message if I can help, I'd love to connect sometime!

@Jonathan Escobar I will send them to you! 

What do you mean house hacker podcast?

If someone was going to house hack and incorporate the repairs into the mortgage it would decrease cash flow.. but would be absolutely necessary in certain situations. 

It really depends on the deal. You could find a great deal because the property is in really bad condition and incorporating the costs would allow you to get market rent and market value for less than buying it turn-key. 

@Jonathan Escobar

I know two lenders that do 203k loans. If you are interested I would be happy to share those. 

We have 3 tenants month to month and one more recent. When we bought the property, the owner was paying for all utilities even though it is separately metered. 

Is there a time period of notice we need to give the tenants before having them start paying their own utilities?

Thank you for your help!

BiggerPockets!

I am managing some properties in Utah and an owner across the way from us(identical 4-plex) has added bedrooms to each unit and is getting additional income. He must have decreased the size of the living room which could work but wouldn't leave much or any room for a living/common area. 

Would anyone be willing to share some before and after photos of your room conversions?

Kind regards,

@Matthew Miles

That makes sense. Very nice strategy!

I think the numbers would make sense if you did rent out both. I know some people who do rent out top and bottom on mother in law units which city zoning might not allow that. I know provo is cracking down on rental units in Provo so make sure to check with the city before doing so. 

@Matthew Miles

And it can be very challenging to find good cash flow deals in Utah but we really specialize in helping people create more value and get higher returns from their properties than most are able. 

Average returns you will be looking at 4-6% Cash on Cash . We try to get 8%. 

Hope some or all of this has been helpful. 

@Matthew Miles 

Matt, I work for the couple that was on Bigger Pockets 288. We are based in Provo/orem and we currently have 30 off market deals. I have info on the first half that I can send you if you are interested?  Send me a message and I'll email you the list. 

I also have some good contacts for lenders, contractors, and agents that can help. I am an agent myself but I am happy to share whatever knowledge and resources I can with you. 

As for your analysis. I think you did a good job from what I can see. I think due to the age of the home you will experience some deferred maintenance and repairs. I think the loan costs would be a touch higher and the interest rate could be higher. 

The income on the listing says they are getting $1,100  for the accessory dwelling unit so I am unsure how your expected income is $2,200? Maybe you are thinking about renting the whole house or something? I can be available to chat anytime if you need help on the Utah market!

I am looking forward to talking with you. 

Kind regards,