All Forum Posts by: Nik Krohn

You can still find single families that cashflow $800/mo. I have one under contract even in this market. I purchased one last year that had a MIL and it cashflows $950. Prices have gone up which is why this new one will only cashflow $800 but they are pretty identical. And that is with usimg MACU 10% investment prop down payment.

Maybe change your search perameters?

@Ryan E. Yes the last one I just bought 3 months ago was in Saratoga. I have another one on the same street under contract.

A good investor can buy in good & bad markets.

@Jim Huish It depends on where you want to buy. I am in Utah County and you can buy a SFR for $300k. I see multifamilies but they don't make sense for me and my goals at the moment.

I have not looked up in Ogden or in southern utah but my guess is you will have to go to one of those sub markets. Make sure it is an area where you are really familiar

Keep telling everyone the Utah market sucks! Keep them out of my goldmine.

I have purchased 2 homes and have 1 under contract. 1 of the homes was in Indiana which looks good on paper but does not even come close to how my UT homes are doing.

If I could do it all over again, I would probably not invest out of state again. The utah market is great

why don't you take it easy? No need to make it more complicated. just live off the 18K per month and save your cash flow and keep buying properties cash. and when you want a big payout when you're close to 70 sell off a portion of a properties as needed. You could also hold the properties in definitely and pass them on to your children inside a trust.

Originally posted by @Ryan E.:

I'm not affiliated with MACU...basically you can do 10% down, no PMI, min credit score of like 740 I think, interest rate is a bit higher than normal. You can use his loan twice. I'm not exactly sure but I think the loan limit is 440k or 420? Pretty cool program.

I actually just spoke with a contact there at MACU recently and I think it is a credit score of 720.

I have used it for purchasing cars cash and home down payments. Even in Real estate you need reserves, they will count the cash as your reserves

Not all whole life policies are created equal. The policy type that I am in favor of is the Whole life policies with the PUA rider in it. 

I get a guaranteed 6% whether I have taken a loan out or not. I dont think that getting a lower interest rate than a bank is why you would want to get insurance. 

Maybe look into Ohio National or MTL. I have policies with both and have had them for 7 years. It was always a bit tight but I look at it as forced savings

Thanks @Rebecca Belnap & @Sam Levin

What are homes renting for out there these days? 

Our current home in SS is 3800 finished Sq Feet with 6 bedrooms (+1 bonus) and we feel like it could rent for $2200/mo

The investment properties will likely be 1800-2500 I would imagine. What kind of rental range would you guys suspect? 

PS - Thanks again - You guys are awesome

Wow guys! I love waking up to seeing all of the comments on the thread :P

@Yuki Inui Thank YOU for some great info. I have not actually thought about building a home as an investment property. Is it possible to purchase from a home builder (We have DH Horton in SS and several other builders) while they are mid build and still get the 50% bonus depreciation? Or do you have to build from the start?

I definitely do want to have a newer home since we plan to hold for many years.

Thanks @Amy Kendall & @Justin Hammond for the feedback too. Its always nice to hear others who are confident in a growing Utah market.

• What kind of cash flow do you guys expect to find with newer home builds? 
  
• Price per square foot seems to be so much higher then when I last purchased 5 years ago. Should that even be a metric that I use to consider for investment property?

We will be putting between 20-25% down on the next 2 homes so that alone should make the hose cash flow positive. In the past we could always try to find a deal that was 15-25% below market. Having looked lately, those dont seem to be around much anymore.