All Forum Posts by: Yuki Inui

@Ryan Hutchins 

I would suggest working with an investors agent (preferably someone who works at a brokerage that focus on investment properties and avoid ones that are just residential agent, because the amount of up-to-date/freshest information and the wide range of network/connection necessary for not just finding the best deals but also helping you with the exit strategy, tax saving strategies, etc really changes the entire outcome of your investments) who has great in-depth market knowledge, experience in making successful investments themselves, holds high level of integrity, honesty and loyalty. Someone who can answer questions or concerns that you have, and have solutions for them (or connection with the best local experts and other agents in the area who can better help you)  

Signing up for their newsletter or FB page is a great way to stay apprised on any new listings or pocket listings (if they offer it that is). But I would say that the best way is to connect with them, pick their brain whether you decide to work with them or not, and let them know exactly what you're looking for and why. They might have a strategy that you have not encountered before, or have a new/unknown information on the areas or type of investment properties that you haven't thought to explore before :)

@Ryan Hutchins

Yep they are all sold out, and their pre-con new Fourplex development in Herriman is getting extremely hard to get hands on unless you are a returning client.

Since we work so closely with the listing broker (just to clarify, @Sam Levin and I aren't FIG listing agent. we just work in the same brokerage, so our focus is more on the buyers interests and are not married to FIG products) and have access to the in-the-loop off market deals, we have a couple tricks that we use for our own investment and we share with our clients for these brand new multi-family that are already sold out though (it's not pre-con purchase so doesn't require 25% down construction loans, or 18 months of waiting period) 

@Casey Christensen

Does the calculation on this property sample in CF that you mentioned that has $200+/mo rent and 6-7% COC include operation cost such as property taxes, insurance, HOA fee, PMI, and move-out cleaning/maintenance reserves? Just wondering because COC is a good metric to use on some properties, but I personally do found it to be that useful when comparing old properties with new construction, because they are not apples to apples.

Also if you didn't include the OC in on the pro forma I sent you on the townhomes you are going to go look at today ($271K purchase price), the COC ratio jumps up to 13.6% and positive cash flow of $400/mo with the 10% down investment laon, just FYI.

Please see the comparison below:

Brand new (pre-construction) Townhome Pro forma with all OC included:

Brand new (pre-construction) Townhome Pro forma with all OC NOT included:

It is possible to lower the down payment even more by using sellers concessions (rolling the closing cost into the loan, so it will affect the cash flow).

Do you have a pro forma / property info (MLS report) on this CF property that you mentioned that you would like me to take a look at?

Sorry it looks like I hit submit by accident before I was even done. Yes @Ryan E. is correct (thanks for filling in!) except for the price for Fourplex is actually now up to $725K+ because of the increased cost of framing and land. Duplex is $385K+ but may already be all spoken for. FIG is great, I work with them and live in a Fourplex they built in Provo. We are But it has become almost unattainable very quickly... it is literately a blood bath right now. If you are a returning client you would have a better chance. The resale of these fourplexes are being traded around $850K today, duplex for $460K+ (we sold ours for $477,500 a couple months ago. We didn't buy it pre-con but bought it right before completion for $417k. We are rolling the proceed into another builder's condo in Vineyard and a townhouse in Lehi using 10% down investment no PMI loan. Also thinking about making a move on one in Herriman before everyone else catches up... hopefully we can before the next price increase)

No that is just the do

@Vera Herlihy

Sorry if it was confusing, but that is what the down payment would be with 25% down (and the purchase price isn't concrete). Their HOA is really great and very accomodating, and they are there to make sure that the entire development will equally be well maintained so they can keep renting the properties for the top dollar. But if that's not what you're looking for then maybe it's not a good match for you :) Most new developments have HOA, including Single Family Homes. The renters love not having to mow the lawn themselves (it would probably be different if they were homeowners), that the community they live are clean and maintained, and have access to the amenities which most new developments do. So from the rental investment stand point, especially if you are doing a remote investment, it is a good set up as long as it is an HOA that is good (such as the ones in Day Break communities, super strict HOA rules and restrictions for rentals)

@Vera Herlihy

Unfortunately this particular builder only builds singles (condo, townhouse and single family). The scarcity of the multifamily developments that are available for individual investors is EXTREMELY severe down here. The only pre-con multifamily that we know of is VERY hard to acquire right now because of the rapidly increasing demand. Hard to qualify for the minimum 25% down construction loans required, so ball park initial upfront cash before the construction starts (which is when you close) is duplex $110k, Fourplex $210k with 25%. All the duplexes they are building in Herriman are in the first phase, which is happening in a matter of weeks if not days, and they could all be spoken for, possibly the 2nd phase as well (there is a very long list of people who couldn't get into the last couple projects waiting for this release) and it's look Although there might be an opportunity for a resale duplex, triplex or Fourplex that surface off market, which runs around 6-6.5% cap rate. You can't use the 10% down for these resale because the market value of existing duplexes is at least $450K today (we just sold ours that completed in February for $475K) and the price limit for 10% down is $420k.

If you're going for a multifamily that's older and cheaper, I wouldn't advise it, for many reasons. I would buy 2 brand new turnkey townhomes in the areas like Herriman or Lehi, using 10% down. If you wanted to you can liquidate one of them and get a brand new multifamily, but with an old multifamily you can't liquidate partially. 

@Kate Weinberg

The file I uploaded is really blurry... sorry about that. Just send me a colleague request and I will send you the pdf if you like.

@Rachel M. 

So just to clarify, 10% down non owner-occupied loan has a limit of $420K purchase price. Assuming that you are interested in buying something new rather than old multifamily, I can say that it is perfect for buying a condo/townhome/single family homes that I mentioned earlier in this thread. The pre-construction multifamily deal that I know of (and I believe to be the only line of products there is in Utah County/Northern Salt Lake County requires 25% down construction loans, which could be a little difficult for some people to qualify for and come up with the downpayment needed. 

Having said that, here are the details on those single unit rentals (condo, townhouse and SFH) using 10% down (or any kind of loans):

• It only takes total $3K up front before the construction starts ($1K earnest money upon signing the purchase agreement and reserving the unit/lot. $2K for construction deposit within about a month from signing the contract)
• No additional payment needed until the remainder of down payment is due at the closing upon completion (so 10% down payment of purchase price minus $3K)
• Construction period: 6-7 months
• Comes with 1 year builders warranty

This program is great because it doesn't require PMI, which usually cuts into the cash flow greatly.

Here is the breakdown and list of available properties in Herriman and Lehi:

I hope this helps :) I'm sure everyone here thinks I'm such a geek lol

Hi @Dan Mead

My partner @Sam Levin and I specialize in helping investors find new construction properties (both single and multifamily). We are based in Provo and focus on the Silicon Slopes proximity, but we deal with southern/northern Salt Lake county as well. Is there any specific reason you want to invest in West Valley area? Do you live in the area and wanting to self manage? Check out our posts/profiles and see if we could help you in any way.