All Forum Posts by: Nate W.

Choosing between two newly developed units in Utah. Breakdown:

• SALT LAKE COUNTY (near main I-15 freeway):
  • 2-bedroom: $220k (not including any other closing fees), projected monthly rent $1,600+, monthly HOA $100+, common/shared swimming pool.
  • 3-bedroom: $250k (not including any other closing fees), projected monthly rent $1,800+, monthly HOA $100+, common/shared swimming pool.
• WASATCH COUNTY (walking distance from local public high school):
  • 3-bedroom: $245k (not including any other closing fees), projected monthly rent $1,600+, monthly HOA $125+, onsite property management fee (screening, leasing, marketing, managing) $100/month, common/shared swimming pool and sport court.

The market in Utah is awful for rentals but I prefer it for my first investment. 25% down payment, 4.5% mortgage rate ($2,500 closing fees) and a $950 monthly payment. What am I missing or are there superior opportunities? I would also consider fix-and-flip opportunities but I don't realistically see the market offering good opportunities in that area. I prefer a newer unit so I don't have to hire property management the first few years and I don't have to really fix anything. I encourage ALL feedback! Thanks!

Great advice. Using a 50% Expense Rule all of these options are in the red. Where are we seeing better opportunities in Utah (or neighboring areas)? It seems to me the market is way too hot for rentals unless you invest a lot of time and energy in finding hidden opportunities? What about partnering with a fix-and-flipper (I assume it will be a similar result in a hot market)?

I appreciate all who have contributed their valuable insight! I have been looking into 30-year mortgages and it looks like at a 25% down payment I will be at 4.5% mortgage rate ($2,500 closing fees) and a $950 monthly payment. Assuming insurance, HOA and management fees, taxes, and more, this is certainly going to be close to break even. I wish it were a better market in UT for rentals unless I'm looking in the wrong areas. Where are we seeing better returns? I assume I shouldn't be looking at new properties and that it's too competitive in Salt Lake, Utah, and Wasatch Counties.

First investment property. Choosing between two newly developed units in Utah. 15-yr mortgage. Breakdown:

• SALT LAKE COUNTY (near main I-15 freeway):
  • 2-bedroom: $220k (not including any other closing fees), projected monthly rent $1,600+, monthly HOA $100+, common/shared swimming pool.
  • 3-bedroom: $250k (not including any other closing fees), projected monthly rent $1,800+, monthly HOA $100+, common/shared swimming pool.
• WASATCH COUNTY (near local public high school):
  • 3-bedroom: $245k (not including any other closing fees), projected monthly rent $1,600+, monthly HOA $125+, onsite property management fee (screening, leasing, marketing, managing) $100/month, common/shared swimming pool and sport court.

The market in Utah is not as prime as most markets but I'm choosing to stay here with my first investment. What am I missing or are there superior opportunities? I prefer a newer unit so I don't have to hire property management the first few years and I don't have to really fix anything. I encourage ALL feedback! Thanks!