1012 S West Temple

Salt Lake City, UT 84101

$875,000B

16 bd · 16.0 ba · 2,000 sqft · Built 1897 · MultiFamily · Active · 47 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $14,056/mo
• Mortgage (P&I): −$4,589
• Tax + insurance: −$681
• HOA: −$0
• Vac / Maint / Mgmt: −$2,952
• Net cashflow: $5,835/mo
• Annual: $70,016/yr
• Cap rate: 14.39%
• Cash-on-cash: 28.90%
• DSCR: 2.29
• 1% rule: 1.61%
• Cash to close: $245,000

Investor read

• This is a 4 × 4-bed/4.0-bath units multifamily listed at $875k.
• At list price, monthly cash flow is $6k ($70k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($14k rent vs $875k).
• It's been on market 47 days — a 3% lower offer ($849k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $849k (3.0% below list) — sets the bar for market timing.
• In year one you build about $3k of equity ($6k loan paydown + $-3k appreciation (-0.3% 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: Liberty School (math 12% / reading 12%, grade F, #572 of 585 statewide, top 98%, 391 students, 100% FRL); Clayton Middle (math 47% / reading 50%, grade C-, #35 of 138 statewide, top 26%, 634 students, 24% FRL); Highland High (math 21% / reading 54%, grade F, #76 of 171 statewide, top 45%, 1,980 students, 30% FRL).
• Watch-outs: flood insurance adds $66/mo; built in 1897 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.8%/yr); 63 active listings in the ZIP; 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.
• 3 sale attempts since 3y ago; this cycle's ask has dropped $74k (8%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-0.3% appreciation + 2.8% rent growth), your $245k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$55k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• At $14,056/mo this rent would consume 232% of the median local household income ($73k/yr) (locally 557% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 47 days. Have you received any prior offers? Is the seller open to a 3% 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 1897 — 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?
• 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?
• 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.