All Forum Posts by: Yuki Inui

@Andy C.

Nice going! I know Bluffdale sold out pretty quick... I'd really like to get a couple townhomes in the new big Lehi Exchange community. Brady just informed me that they will be releasing phase 1 & 2 on May 10th.

You should talk to @Sam Levin about the property management. He manages his and his clients' investment properties and he's really good at what he does. The tenants absolutely love him.

@Nik Krohn

>I have not actually thought about building a home as an investment property. Is it possible to purchase from a home builder (We have DH Horton in SS and several other builders) while they are mid build and still get the 50% bonus depreciation? Or do you have to build from the start?

Yes, there are good quality builders like EDGEhomes that are building new in Saratoga Springs. We fell in love with the view of the valley and the lake from Edgehomes Talus Ridge community and almost built our dream single family home with them last year! (bought a Fourplex in Provo instead since it was more convenient for us to commute and self-manage) I know several investors who have built with them, and they're extremely happy with the quality. Our friend Brady Jex is an excellent consultant (kind of has the "good uncle" vibe and never pushes you to buy anything or to do something you're not comfortable, but very knowledgable and gives you valuable information and advice you need right when you need them) With Edge you can add an extra bedroom for $7K and raise the rent by $100, a great trick to create better cash flow. Their building time is around 6 months, and our experience at their design center in Orem was so much fun to say the least... (being able to pick your own materials and style is just so awesome... and their designer Matt is great to work with!) I also hear good things about D.R.Horton as well.

Looks like @Sam Levin beat me to your question regarding the bonus depreciation!

Here is a couple articles that talk about bonus depreciation

http://www.thetaxadviser.com/issues/2016/may/bonus...

http://www.nolo.com/legal-encyclopedia/50-bonus-de...

@Nik Krohn Hi Nik! Simple answer to your question "whether you should get in now" is yes. 

A friend of mine who is also an investor just built a house there and has a great cash flow and cap rate. The home prices are going up everyday, as well as rents. Whether to hold it for capital gain or income, I wouldn't hesitate to buy in Utah county right now. There is so many factors that make the Utah's rental market bullet-proof even if the market crashed. I would strongly recommend avoiding existing buying new construction for a few reasons, especially if you're intention is to buy and hold. 

1. Tax benefit - 50% bonus depreciation deduction on new builds purchased in 2017 (the % decreases to 40% for 2018 & 30% for 2019) 

2. Renters demographic - The majority of the renters here are young couples with small kids, tech savvy millennials (tech employees & university students). They tend to prefer a modern style home with newer systems. Hence higher rents, better quality tenants.  

3. No hidden surprises - No need for initial work or repairs.. I myself as an investor hate to own old homes as an investment. I value my time too much to be willing to stress over unexpected repair cost or something that could literately ruin my plan.

4. Easier to manage & cheaper to maintain. Insurance cost is lower. Utility bill is smaller. It takes less time and money to re-rent. Things don't break as often as older homes.

5.  New communities have amenities that established communities don't, such as new park, playground, pool, splash pad, etc, which the trend says millennials look for in a rental.

6. Investment Oriented - For example, you can increase the rent and increase the value of your property significantly by adding an extra bedroom for almost nothing. It works great for Utah because of the uniqueness of the renters demographic.

I would definitely recommend talking to @Sam Levin who is my investment partner and pick his brain. He knows the market extremely well, has strong connection with quality builders, lenders and is very honest and genuinely cares about fellow investors.

@Jarod Hall Hi Jarod, congrats on the Fourplex! I checked your website and love your style and modern design. I'm very interested in learning more about what you do. Is there anytime you can make time for a chat over coffee/lunch or a phone meeting with me and my partner sometime this weekend or next week?

Hi Todd, 

I work closely with an agent who specializes in new construction investment properties (mainly in Utah County and Salt Lake county) so I might be able to help. with a few good custom home and . 

A couple questions, are you looking for a single family home (or condo/townhome), or a multifamily? Is there a reason you want to build in that particular area (Davis county)?