7337 W Louden Dr

Magna, UT 84044

$3,850,000D+

480 bd · 400.0 ba · 5,399 sqft · Built 2020 · MultiFamily · Under Contract · 78 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $37,975/mo
• Mortgage (P&I): −$20,190
• Tax + insurance: −$4,318
• HOA: −$2,731
• Vac / Maint / Mgmt: −$7,975
• Net cashflow: $2,762/mo
• Annual: $33,142/yr
• Cap rate: 7.15%
• Cash-on-cash: 3.07%
• DSCR: 1.14
• 1% rule: 0.99%
• Cash to close: $1,078,000

Investor read

• This is a 20 × 24-bed/20.0-bath units multifamily listed at $3.85M. Condition is rated excellent.
• At list price, monthly cash flow is $3k ($33k/yr) — positive. Per door: $138/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $3.80M (1.4% below list).
• It's been on market 78 days — a 6% lower offer ($3.62M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $3.62M (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $27k of loan paydown is wiped out by about $116k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#65 in UT, #4,367 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, housing A+, cost of living B; Watch: amenities F, health & safety D-.
• 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.
• Zoned schools: Lake Ridge School (math 13% / reading 14%, grade F, #566 of 585 statewide, top 97%, 422 students, 59% FRL); Scott M Matheson Jr High (math 18% / reading 22%, grade F, #128 of 138 statewide, top 93%, 1,081 students, 51% FRL); Cyprus High (math 11% / reading 33%, grade F, #150 of 171 statewide, top 88%, 2,709 students, 47% FRL).
• Market conditions: 207 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.
• 5 sale attempts since 2y 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.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $37,975/mo this rent would consume 504% of the median local household income ($90k/yr) (locally 384% 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 78 days. Have you received any prior offers? Is the seller open to a 6% 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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• 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?
• 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?