1314 E Crandall Ave

Salt Lake City, UT 84106

$789,000D

6 bd · 5.0 ba · 3,015 sqft · Built 1983 · MultiFamily · Under Contract · 9 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,367/mo
• Mortgage (P&I): −$4,138
• Tax + insurance: −$625
• HOA: −$0
• Vac / Maint / Mgmt: −$1,127
• Net cashflow: $-523/mo
• Annual: $-6,275/yr
• Cap rate: 5.50%
• Cash-on-cash: -2.84%
• DSCR: 0.87
• 1% rule: 0.68%
• Cash to close: $220,920

Investor read

• This is a 2 × 3-bed/3.0-bath units multifamily listed at $789k.
• At list price, monthly cash flow is $-523 ($-6k/yr) — negative. Per door: $-261/mo.
• To cash-flow at today's rent, offer at most $697k (11.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $537k (32.0% below list).
• Only 9 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $537k (32.0% below list) — sets the bar for 1% rule.
• In year one you build about $84k of equity ($5k loan paydown + $79k appreciation (10.0% local appreciation)).
• Location reads 75/100 on livability (#64 in UT, #3,994 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, housing A; Watch: cost of living D+, crime F.
• Salt Lake District (urban): math 30% / reading 37% proficiency, ranked #65 of 80 in UT (top 81%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Highland Park School (math 47% / reading 50%, grade D, #193 of 585 statewide, top 33%, 493 students, 17% FRL); Hillside Middle (math 44% / reading 46%, grade D, #43 of 138 statewide, top 33%, 555 students, 29% FRL); Highland High (math 21% / reading 54%, grade F, #76 of 171 statewide, top 45%, 1,980 students, 30% FRL) — zoned schools average 25% FRL vs 57% district-wide (32 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents soft (-0.5%/yr); 197 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 4,970 units permitted in Salt Lake County in 2024 (1,963 in 5+ unit buildings).
• Salt Lake County population projected at +37% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 17 sale attempts since 30y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 2, paydown + projected appreciation supports a ~$136k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• At $5,367/mo this rent would consume 63% of the median local household income ($102k/yr) (locally 1046% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.