1612 S 500 E

Salt Lake City, UT 84105

$724,900D

8 bd · 4.0 ba · 2,950 sqft · Built 1929 · MultiFamily · Under Contract · 121 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,787/mo
• Mortgage (P&I): −$3,801
• Tax + insurance: −$596
• HOA: −$0
• Vac / Maint / Mgmt: −$1,215
• Net cashflow: $174/mo
• Annual: $2,091/yr
• Cap rate: 6.58%
• Cash-on-cash: 1.03%
• DSCR: 1.05
• 1% rule: 0.80%
• Cash to close: $202,972

Investor read

• This is a 2 × 4-bed/2.0-bath units multifamily listed at $725k.
• At list price, monthly cash flow is $174 ($2k/yr) — positive. Per door: $87/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 $579k (20.2% below list).
• It's been on market 121 days — a 12% lower offer ($638k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $579k (20.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k 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: Hawthorne School (math 63% / reading 66%, grade B, #23 of 585 statewide, top 4%, 362 students, 22% FRL); Hillside Middle (math 44% / reading 46%, grade D, #43 of 138 statewide, top 33%, 555 students, 29% FRL); Highland High (math 21% / reading 54%, grade F, #76 of 171 statewide, top 45%, 1,980 students, 30% FRL) — zoned schools average 27% FRL vs 57% district-wide (30 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 49% at this address vs 34% district-wide (+16 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: built in 1929 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+3.9%/yr); 98 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.
• 8 sale attempts since 20y 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.
• At $5,787/mo this rent would consume 70% of the median local household income ($100k/yr) (locally 873% 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 121 days. Have you received any prior offers? Is the seller open to a 20% 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 1929 — 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.
• 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?