There are 3 main ways to invest in Cache Valley Real Estate:
Property Appreciation using “Leverage” to get high ROI
Rental Income – Be an Owner creating positive Cash Flows
Fix and Flip – Buy a beat up property at below market falue, fix it up and sell it for more than the improvements.
Everyone who owns real property is in this way an investor. We buy a property and “leverage” our cash by getting a mortgage loan. Over time property value appreciates at a rate exceeding inflation. The problem is that we can never predict when, and by how much our property will appreciate. Property tends to appreciate more when interest rates are low and demand for housing is strong. Unlike other parts of the Country, Cache Valley has not appreciated at such phenomenal rates. In my not so expert opinion, I think real estate will continue to appreciate at a healthy 5 to 6% annually. Nevada, Arizona, California, and Colorado real estate, have all recently appreciated at phenomenal rates and are now “over priced” housing markets. This will only add to growth and increased demand of housing in Utah and Cache Valley. This year alone most of Utah has seen significant pricing hikes as many areas have turned into sellers markets. Cache Valley hasn’t hit this point yet, but it may be happening soon.
One reason many people want to move to Cache Valley is for the scenery and open space. This demand will only continue, yet the supply of land will not. The value of land here will always appreciate in the long run.
35% of Cache Valley Residents Rent. A good rental investment will create positive cash flow and appreciation. Cache Valley has a plethora of duplexes, triplexes, four plexes, and commercial properties that can produce income. When investing in rental properties it is important to take in consideration property taxes, insurance, repairs, and vacancies. Investing in rental properties obviously requires more hands on work and repair than other investments. Investing in rental properties is nice because you benefit from great tax breaks, price appreciation, and you can supplement your monthly income with rental income. In my opinion, it is not the best time to invest in residential rental income. With the recent construction of many new apartment complexes, there are presently high vacancy rates on many rental units driving rent prices downward. This trend could very easily lower the market value and price of multi-family properties, and it is hard to have positive cash flow when your units are vacant. It very important to consider zoning laws when investing in rental properties.
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Fix and Flip
This has been an increasingly popular trend spurred by television shows on TLC and Home and Garden. The objective is to buy a foreclosed, or not so well kept house at a low price; then update it in a way where the improvements will add more value than the improvement cost, and resell it for a profit. Because housing is so affordable in Cache Valley this is hard to do successfully. But it is possible when you can get a super sweet deal on a house or have some mad craftsman skills. Super sweet deals are most often found on foreclosure homes. As a full time Realtor and real estate investor I come across “deals” quite often. If you would like to be put on my list to notify you of any potential rehabbing deals please fill in this form.