All Forum Posts by: Josh E.

Apparently no one is willing to recommend a good cpa in Utah? Wish I had one to recommend.

There aren’t many deals, but they are out there. I checked MLS every day for 3-4 months, and finally found a deal on a Duplex in salt lake that generated approximately 1100/month after all expenses. (Some creativity needed and a small remodel of approximately 5k on a 380k purchase price) I think you just have to see the property for what it can be rather than what it is, and jump on it fast. It’s not a slam dunk, but it’s a single. Maybe a double after a couple years of appreciation.

Welcome Taylor! Congrats on your first purchase. I took the jump 2 years ago and now have 3 duplexes under my belt, 2 in Utah county and 1 in salt lake. It's still a great time to get started! I also work at a bank and understand many of the different financing options available. Feel free to shoot me a message if you have any questions, and good luck in the future!

Seems to me it just depends on your experience, time, and capital constraints. Also depends on what your goals are. For example, if the goal is to create a portfolio of properties that will generate passive income, seems like the best option is to do phase 3, sell off 3 or 4 of the duplexes and keep the other 1 or 2 free and clear to generate your cash flow. Or even better yet, do cash out refinances on as many duplexes as possible to keep them for yourself. If your goal is to just create some cash, seems like phase 3 would also be the route to go. It will definitely take more time and effort, and you would have to weigh the costs of capital/leverage to fulfill such a time intensive project. How much will it cost to leverage this phase? How much is your time worth to you? Maybe the cost of borrowing to fulfill the project isn't worth the added profit on the back end? If you were just looking to make a quick buck, maybe phase 1 is your option? Nothing wrong with investing little time to generate a decent return, let other deal with the headaches that come with new construction. Seems to me though if you've gone this far, it would make sense to go to at least phase 2, getting those lots ready won't be THAT much more work compared to phase 1, and the cost to do so won't be that much leather, not nearly as much as actually building the duplexes. Difficult question to answer concretely, but these are the things I would be considering if I had this deal.

I agree with @nikkrohn. There can still be deals in Utah if you are constantly looking for them and are patient. After 3 months of looking I finally found another one and am under contract, once I'm able to stabilize it with new renters I'll post more about it.

Both very good points. I was originally leaning toward the 7/1 arm... now leaning toward the 30 year fixed.

Hey BP - I just went under contract for my 3rd large duplex in Utah, this one for 378,000. I have a choice in my financing: to do a 7/1 ARM or a conventional 30 year. My other 2 properties are on 30 year fixed. I have no idea if or when I will plan on selling this property I'm currently buying, but if it appreciates half as much as my other 2, I could easily sell it before 7 years are up and 1031 to something bigger. But not having the fixed amount for 30 years is a little unsettling considering I don't know what will happen in the future. Details: (with 25% down) 7/1 ARM - 3.625% rate, p&i 1292.91 30 year fixed - 4.25% rate, p&i 1394.65 So With the ARM I would save 100/month on cash flow, or 8400 in the 7 years of a fixed rate. After 7 years, the ARM can go up a max of 2%/year with a max of 9.625% over the life of the loan. So look into your crystal ball and let's talk about what you think rates will do over the next 10 years.

The answer will depend on what kind of tenant you want to have and the surrounding area. Similar to Aaron, in my area a 4/2 would probably rent for about 150-200 more per month than a 3/2. But if you are in a A- or B+ type area that values a master bedroom, 2 car garages, or other nicer amenities and people are willing to pay a premium for such a property, I would go with the 3/2. In most cases though, I would think the 4/2 would bring in more cash as a rental.

Chris Potter by the time I made an offer the next day, they already had accepted another offer from someone else. That's how it goes in the Utah market right now I guess.

Excellent, thank you all for your responses, I'll most certainly do that tomorrow. I appreciate your help!