3199 S 540 E Unit 1-4

South Salt Lake, UT 84106

$1,350,000D

15 bd · 9.0 ba · 3,600 sqft · Built 1964 · MultiFamily · Under Contract

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,829/mo
• Mortgage (P&I): −$7,080
• Tax + insurance: −$1,051
• HOA: −$0
• Vac / Maint / Mgmt: −$1,854
• Net cashflow: $-1,156/mo
• Annual: $-13,870/yr
• Cap rate: 5.27%
• Cash-on-cash: -3.67%
• DSCR: 0.84
• 1% rule: 0.65%
• Cash to close: $378,000

Investor read

• This is a 5 × 3-bed/1.8-bath units multifamily listed at $1.35M.
• At list price, monthly cash flow is $-1k ($-14k/yr) — negative. Per door: $-231/mo.
• To cash-flow at today's rent, offer at most $1.15M (15.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $883k (34.6% below list).
• Only 0 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $883k (34.6% below list) — sets the bar for 1% rule.
• In year one you build about $144k of equity ($9k loan paydown + $135k appreciation (10.0% local appreciation)).
• Location reads 71/100 on livability (#88 in UT) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, amenities B; Watch: employment C-, schools F, crime F.
• Granite District (suburban): math 26% / reading 32% proficiency, ranked #69 of 80 in UT (top 86%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: Rents soft (-0.5%/yr); 195 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.
• 2 sale attempts 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 ~$232k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• At $8,829/mo this rent would consume 104% 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?
• Built in 1964 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?