404 E 5600 S

Murray, UT 84107

$9,500,000D

1833 bd · 1872.0 ba · 34,170 sqft · Built 1969 · MultiFamily · Active · 297 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $77,314/mo
• Mortgage (P&I): −$49,819
• Tax + insurance: −$7,126
• HOA: −$0
• Vac / Maint / Mgmt: −$16,236
• Net cashflow: $4,133/mo
• Annual: $49,598/yr
• Cap rate: 6.82%
• Cash-on-cash: 1.86%
• DSCR: 1.08
• 1% rule: 0.81%
• Cash to close: $2,660,000

Investor read

• This is a 39 × 47-bed/48.0-bath units multifamily listed at $9.50M.
• At list price, monthly cash flow is $4k ($50k/yr) — positive. Per door: $106/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 $7.73M (18.6% below list).
• It's been on market 297 days — a 12% lower offer ($8.36M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $7.73M (18.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $66k of loan paydown is wiped out by about $285k of value loss. Plan a longer hold.
• Location reads 82/100 on livability (#29 in UT, #1,169 nationally) — a professional / high-income tenant draw. Strengths: commute A+, housing A+, health & safety A; Watch: cost of living C-, crime D.
• Murray District (suburban): math 37% / reading 43% proficiency, ranked #46 of 80 in UT (top 58%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Mcmillan School (math 52% / reading 60%, grade C+, #88 of 585 statewide, top 16%, 481 students, 27% FRL); Hillcrest Jr High (math 24% / reading 31%, grade F, #113 of 138 statewide, top 83%, 776 students, 39% FRL); Murray High (math 29% / reading 45%, grade F, #78 of 171 statewide, top 49%, 1,400 students, 24% FRL) — zoned schools at 30% FRL track the district average.
• Market conditions: Rents falling (-3.0%/yr); 230 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.
• 7 sale attempts since 8y ago; this cycle's ask has dropped $1.00M (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At $77,314/mo this rent would consume 1287% of the median local household income ($72k/yr) (locally 2149% 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 297 days. Have you received any prior offers? Is the seller open to a 19% 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 1969 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• Crime grade is D 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?