227 N Spencer Ct

Salt Lake City, UT 84103

$3,599,999F

660 bd · 484.0 ba · 13,866 sqft · Built 1916 · MultiFamily · Active · 69 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,440/mo
• Mortgage (P&I): −$18,879
• Tax + insurance: −$6,066
• HOA: −$0
• Vac / Maint / Mgmt: −$932
• Net cashflow: $-21,438/mo
• Annual: $-257,252/yr
• Cap rate: -0.83%
• Cash-on-cash: -25.44%
• DSCR: -0.13
• 1% rule: 0.12%
• Cash to close: $1,008,000

Investor read

• This is a 2 × 3-bed/1-bath units multifamily listed at $3.60M. Condition is rated good.
• At list price, monthly cash flow is $-21k ($-257k/yr) — negative. Per door: $-11k/mo.
• To cash-flow at today's rent, offer at most $498k (86.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $444k (87.7% below list).
• It's been on market 69 days — a 6% lower offer ($3.38M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $444k (87.7% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $25k of loan paydown is wiped out by about $108k of value loss. Plan a longer hold.
• 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: Ensign School (math 67% / reading 67%, grade B+, #15 of 585 statewide, top 3%, 313 students, 13% FRL); Clayton Middle (math 47% / reading 50%, grade C-, #35 of 138 statewide, top 26%, 634 students, 24% FRL); West High (math 33% / reading 60%, grade D-, #38 of 171 statewide, top 24%, 2,600 students, 51% FRL) — zoned schools average 29% FRL vs 57% district-wide (28 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 54% at this address vs 34% district-wide (+20 pts) — the actual schools serving this property are materially stronger than the Salt Lake District average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: flood insurance adds $66/mo; built in 1916 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.6%/yr); 205 active listings in the ZIP; 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.
• Climate carrying-cost: severe flood risk; major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• At $4,440/mo this rent would consume 63% of the median local household income ($84k/yr) (locally 1273% 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?
• It's been on market 69 days. Have you received any prior offers? Is the seller open to a 88% concession, seller financing, or rate buy-down credit?
• 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?
• Built in 1916 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.