All Forum Posts by: Tyler Ruff

Context: I'm a new investor looking to buy my first property in 2020. I'm shopping in SL and UT mostly but recently expanded my search to Ogden and have some dumb questions.

1. Why is the price / sqft so much lower in Ogden compared to SL or UT counties? I'm seeing deals on Redfin and zillow in Ogden that look WAY better than anything in SL or UT counties. Why is that? What am I missing? It seems the margins are way better.
2. Those of you who own in Ogden, what's your vacancy rate? Are the quality of tenants different from SL or UT counties?
3. Why is no one buying up these houses that seem to have great cashflow?
4. Any noteworthy prop management companies in Ogden I should look at?

Thanks in advance! 

@Skyler Smith Thank you for the information, and the offer. I think I wanna stick closer to home for now though. I will continue my education and piling up my savings :)

@Amy Kendall Good questions, haha. I think it would have to be an incredible deal you would probably want to snatch for yourself to get my wife and I out of this house... Fully admit it's a comfort we're kinda unwilling to give up as we'll be expecting our first child soon! Yes, even finding a 1% test-passer is proving difficult. I'm looking for a BRRRR home within 50 miles of Lehi. I'm patient and can wait 6 months to find the perfect first deal if I have to— I'm excited but not so excited that I'd pull the trigger on an okay deal. Still not confident in my own ability to even know what an 'okay' or 'great' deal would be in Utah anyway...

Holy wow thanks for the fast responses guys. 

There is a pad rent of $400 a month, which answers the question about the home and land being combined. 

@Steve Vaughan my original post says it's a 1984 mobile home
I just found out they don't allow renters either and they prefer a cash purchase so @Skyler Smith you called it re: financing. Suddenly this isn't a deal at all. Some of you may be chuckling. Hee haw.

Ok. Well ¯\_(ツ)_/¯ still a lot to learn. I'm patient! I've texted a few agents letting them know I want to acquire my first rental property and I get the feeling saying this is scaring them away... because I'm just another wannabe investor. Trying to target podcasts/webinars for working with Agents if you're new... got any helpful links?

Sounds like mobile homes aren't all that great for new Utah investors in late 2019. I'll keep looking though. Does anyone here have renters in mobile homes in the SL or Utah valleys? A 5 min google search doesn't answer whether or not it's legal/illegal at a state level...

I'm interested in finding a BRRR home. I used to flip houses as a contractor apprentice and am not afraid of bigger jobs. Seems like without access to the MLS I need to find a good agent.

Also a disclaimer— I'm not at all attached to this ^ property or anything else I've seen— I guess I wanna know if I'm thinking the right way and doing the right kind of math. I've lived in the city where the property is for several years and know the area fairly well... I just know nothing about mobile homes. 

Okay. I read Brandon Turners book on rental property investing. I've been scanning zillow and zillow rentals for starters and using the "50% test" to quickly rule things out. In Utah right now prices are kinda crazy and nothing seems like it will cashflow on day 1, even using a "30% test". Here's what I found:

• Mobile home listed for $45k. 3beds, 2bath, 924 sqft.
• I can see similarly sized APARTMENTS and HOUSES in the surrounding blocks listed for rent at around $1k/month— but no other MOBILE HOMES for rent. Maybe there's a reason?
• Planning to put 20% down, making the mortgage $36k, bringing the payment to $200/month
• Home was built in 1984. Listing says new roof and appliances and "owner will provide a flooring allowance". Shed and all contents are included (lawn mower, yard equipment, etc)
• Been owned by the same guy for 20 years. Says he's not open to seller financing :(
• Using the "50% test" described in Brandon's book, that makes for half the rent being saved for all expenses.

So, check my rough math? what am I missing? 

• $700/month, all expenses paid
• Rent for $1,000 means $300 cashflow on day 1, right? Wrong?

Thanks in advance for looking and for your advice!

Damnit I missed this! Please do let us know the next time you come to Utah!

Just bumping this post +1, I'm an aspiring investor with the same question. Are there local places we should be looking for bank-owned sales? Just the MLS?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $296,000

This is our current residence. It's a 2018 new construction home and we love it. 2400 square feet, 600 of which is in the unfinished basement. Wife does not like the idea of house hacking but is "open to it because it makes financial sense". It's that comfort-sacrifice ratio we're still discussing. Backyard is not finished.

Mortgage is $1,550 including insurance and tax.

What made you interested in investing in this type of deal?

We wanted to stop being renters and buy our first home to live in!

How did you find this deal and how did you negotiate it?

We had been driving around the areas we wanted to live in every day after work and finally saw a sign "new homes starting in the mid 200's" and so we pulled over and ended up locking in a lot that very night!

How did you finance this deal?

We went through a mortgage broker who was referred to us by a coworker and friend. He's incredible and gave us a way better deal than any of the local Utah credit unions including UCCU who are usually the lowest.

How did you add value to the deal?

I'm not sure if this counts but we chose upgrades, colors, floors and other things based on what we thought would increase resell value. We added a fireplace, trendy black and white exterior theme colors, etc.

What was the outcome?

Well, we love our house but would love to start building passive income! The home building (and buying) process wasn't as scary as it was cracked up to be. We got through it just fine and had a great experience. I have since been bitten by the passive income bug and am looking for my second property!

Lessons learned? Challenges?

Ask everyone you know who has built a home for any upgrades they which they would have done. Best upgrades I'm SO GLAD we did:

Double shower— there's just something very special about being able to comfortably take a long shower with your spouse...

Garage sink. This is huge for me as I do all the auto repairs and maintenance on our cars and house.

Fireplace. Nuff said.

Extra lights in the garage.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We did not have an agent helping us buy, so this was a great bonus because that cash went towards our closing costs. We have no experience working with an agent.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $296,000

This is our current residence. It's a 2018 new construction home and we love it. 2400 square feet, 600 of which is in the unfinished basement. Wife does not like the idea of house hacking but is "open to it because it makes financial sense". It's that comfort-sacrifice ratio we're still discussing. Backyard is not finished.

Mortgage is $1,550 including insurance and tax.

Hey Casey, I'm here in the year-old communities being built all over Eagle Mountain (near Saratoga Springs) in Utah County. I'm brand new to this forum and to real estate. Will send you a connection.