All Forum Posts by: Steve Theobald

@Kyle Pierce  I have several clients who are not afraid of the $1M+ mark.  I may be able to hook you up.  I will see if they are okay having you call them and will then PM you.

@Account Closed, Becca has good info as always.  Even though my broker is a property manager, I don't get into the nitty gritty of landlording (I just help investors find good deals).  I know that you need to take a "good landlord" class with some cities, and I recommend reviewing the UAA - Utah Apartment Association website for more info:  Utah Apartment Association.  

All the prior comments are really good. Because of the growth of the past 6 years from when the Utah market bottomed in 2012, appreciation and principal pay down appear to be the only sane reasons to hold rentals in your portfolio in Utah - because compared to much of the rest of the country, the cash flow is lagging here. But for those with a longer term horizon, I have still been able to find a few SFR and Multi-family deals daily that work quite nicely on CoC and 10-year IRR. PM me if interested.

Hi @Ted Guzman. Great question! 1) Talk to your lender to determine your max purchase price. But make sure to include the income from your son's rent. 2) When talking to the lender, ask again about the debt to income ratio but this time include the potential rents from a single family residence (SFR), a duplex, a triplex, and a fourplex. This will challenge the lender, but he/she will manage! 3) Consider converting any retirement funds you have into self-directed funds so you can purchase real estate with them. 4) Let me (or another agent) help you find, negotiate, and purchase a property that has good rental numbers. Both SFRs and Multi's can be great rentals. 5) Manage this second one yourself to see first hand the complexity, but then plan on hiring a property manager for #3 and #4 after you get tired of whiny tenants. LOL. 6) Remember you are in the for the long haul and don't sweat any eventual market down-turn. Please PM me privately to continue the discussion.

Utah is a hot market and the deals are flying off the shelf.  How can you quickly know which rental deals have the best numbers each day before they are under contract?

I have the answer!  Each day I send out a list of the top SFRs and Multi's with the best rental numbers to those who commit to use ME to make offers. 

I estimate rents, look at all the pics to estimate rehabs, and do full-blown CMAs on all the deals.  

Am I nuts?  You decide.  But take advantage of it while I am willing to spend this time.

Here is a portion of today's SuperRentals list, sorted by IRR:

Be sure to connect with me here on BP and fill out my short questionnaire:  http://tinyurl.com/SUPERSteveHomes

I look forward to sending you my list.  

Enjoy!

Steve Theobald 

@Becca Summers Love the island idea.  But how could a bridge or road not interfere with boating?   Hmmmm.  Congrats on the $600k sale!!

@Becca Summers  that's really exciting info about FB and Eagle Mountain.  And I like how you said "growth is from going UP" down in Orem/Provo.  I have always wondered what we do in these boxed-in counties since the birth-rate and in-migration is probably not slowing anytime soon.   I have thought about draining half or all of Utah Lake, but that idea didn't go over too well with my wife, and I am sure that the Saratoga Springs lakefront dwellers would string me up.

@Chase Harmon  I am in Salt Lake.  I work mainly with investors.  Few agents have the experience and ability to let "the numbers speak" on a deal and not make it emotional (which is what is required for an investment).  I have been an investor myself since 2006.  I have done about 30 flips and just closed my 150th deal in 6 years as an agent.  I'd be happy to help you with both SFRs and Multi's, flips and rentals.  Please message me privately.

@Allan Anderton  Congrats on listening to every podcast.  Wow.  Also, I am impressed with how hard you are working on the down payment and thinking things through.  While not related to rentals, yesterday I heard about a new flip investor SELLER who had to bring $40k to the closing table upon resale.   Are you freaking kidding me?!!!!   This real estate business only works long term for those who engage their brains and factor in ALL costs and risks.  You have gotten some great advice from others in this thread, and you will succeed.  

By the way, I regularly produce a list of the best SFR and Multifamily rentals in Salt Lake and surrounding counties. The first pass is based on the "Gross Yield" which is simply the ratio of annual estimated rents by bedroom count divided by the sales price. The ones that float to the top MAY be good rentals. From there I estimate rehab costs and more. I'd be happy to share it. Let's talk.

Hi @Vinoth Amar

I grew up on the east side of San Jose (by Milpitas) but after meandering all over the USA, I have landed in Salt Lake.  I'd love to help you invest here.  (I do miss home!)

I think the next table answers your first question.  This is NO BUBBLE in Salt Lake.  We are #1 in the entire nation for job growth.

As you might have guessed, with stellar growth, the margins for investment properties are shrinking.  The rents are not going up as fast as the property is appreciating.  

Nevertheless, good deals are all around, especially if you find them yourself OFF market.  But as a Realtor, I love to find that needle in the haystack for my clients.  And I never hesitate to speak up if I would not want a deal myself.  Whoever you decide to use to help you in your quest must be a straight shooter.  There is too much at stake.

a. The debate between SFR and TH is ongoing. Both sides have valid points, and both work as investments. I work for Keyrenter Salt Lake Realty & Property Management, and most of our clients have SFR's. Some love the exterior maintenance the HOA provides for TH's, but of course, this is balanced out by the HOA fees. And those who live in SFR's seem to stay longer than those who are sharing walls or ceilings with other humans who party, fight, or stomp around in the middle of the night - just because! There are lots of things to consider for sure.

b, c.  ALL areas are going gangbusters right now.  Areas with affordable housing have almost doubled since the bottom in July of 2012.  The areas you mentioned are great, but it is important to remember that you are balancing RENTS with the purchase price and mortgage.  I can send you a list of what I think are some of the best rentals out there.

There are lots of great PM's out there, but I am partial to Keyrenter Salt Lake.  They not only do a great job, but I joined them partially because they are the owners of the national Keyrenter franchise and have close to 25 offices now.  This means they are constantly seeking to improve systems.  I like that.  The fee scales for most PMs, and KeyRenter is very competitive, between 8 and 10%.

Please message me privately to continue the conversation.

Steve Theobald