All Forum Posts by: Tyler Vargha

Hi, 

I have been doing house hacking and being a landlord for the last 5 years and am trying to set myself up for my second property right now. The plan is to house hack it as well, buy a third property just for myself, and then use the first and second properties cash flow to fund a down payment for the fourth property etc. My question though is what is considered good CoC and cash flow for Salt Lake County? I'm mostly talking about the east side or better neighborhoods. My current property has a 9% CoC and a $1,000 Cash flow (SFH with mother in law). What percentages seem like a good deal for you in the Utah area? Other info on current property: 3.25% interest rate, 3,400 SQ ft, purchased last year in April.

So what would you say is a good CoC and cash flow amount for a duplex or SFH right now in Salt Lake County?

This is what my CPA is telling me so I'm just trying to see where he's coming from and what we can do to clarify that it's 100% a primary residence and shouldn't be subject to the long term capital gains because my understanding was also that living in a house hack for 2 of the last 5 years was considered a primary residence any way that you look at it. 

Hi, 

I am wondering if you house hack a house (single family and renting basement with separate entrance) and then sell the property and move into a new property that is also your primary residence, is the sale considered as a rental property or as a primary residence property. Is the only way to be exempt is through the 1031-exchange in this case or does it follow normal exemptions that couples can right off for capital gains? 

Hi, 

I recently purchased a property with 15% down for $525,000 in the Salt Lake City Utah area, still have a remaining $50,000 in cash and have the property appraising for $550,00 at time of purchase as-is. It is my intention to use about $25,000 to fix up the property (there are some core updates that need to be made such as new roof, hvac etc.) and to make it a healthy cash-flowing property for a top/bottom layout house to two different renters. My estimates are that within a year, this property will be in the low 600's. This house is 3200 sq ft. with the top being 1900 sq ft (3bd 2bth) and the bottom being 1300 sq ft (2bd 1 bth). Everything will be in great shape and the neighborhood is great with tons of rapid appreciation going on here. 

My main question is about my exit strategy and getting funding for a second place. At the moment, the mortgage rate is $2,200 and should be around $2,000 after having the property appraised again and removing the PMI. The downstairs unit will rent for roughly $1,300 and the upstairs should rent for $1,700, leaving me with a gross profit of roughly $1,000/mo. My regular W-2 job makes $65,000/yr.

What would you suggest to do in order to expand my portfolio that would allow me to hold onto this first property and have a way to fund a second property in the near future (less than 2 years from now). If needed, I would be ok with moving into one section of the new property to help secure financing. 

Makes sense. Thanks for clarifying

@Salvatore Lentini, my biggest concern is figuring out how to grow from one property to many. I have 100k cash that I will have available to spend in a market that is selling homes in the 250-350k range for Single Family Homes and I'm trying to get a goal of making $100,000/year (55 units or so making $150+ cash flow/month) in cash flow doing rentals. I am struggling to figure out how to find the right property that will allow me to move in (we will be selling our primary residence, so we will need at least one unit for ourselves), fix it up, and then be able to refinance in a year and move out to get another unit.

I am looking at purchasing a SFH and renting out a MIL with a separate entrance in salt lake / utah county. Is there a legal way to live in half of the house for a year, move out, and then rent the top and bottom as two units? I would be assuming here that there is already sufficient parking for both.