1150 S 400 E

Salt Lake City, UT 84111

$990,000C-

16 bd · 16.0 ba · 1,676 sqft · Built 1910 · MultiFamily · Active · 132 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $9,469/mo
• Mortgage (P&I): −$5,192
• Tax + insurance: −$988
• HOA: −$0
• Vac / Maint / Mgmt: −$1,988
• Net cashflow: $1,301/mo
• Annual: $15,615/yr
• Cap rate: 7.95%
• Cash-on-cash: 5.92%
• DSCR: 1.26
• 1% rule: 0.96%
• Cash to close: $277,200

Investor read

• This is a 4 × 4-bed/4.0-bath units multifamily listed at $990k.
• At list price, monthly cash flow is $1k ($16k/yr) — positive. Per door: $325/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 $947k (4.4% below list).
• It's been on market 132 days — a 12% lower offer ($871k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $871k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $30k 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: 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 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+1.4%/yr); 81 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.
• 5 sale attempts since 8y ago; this cycle's ask has dropped $200k (17%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: major flood risk — expect insurance premiums to compound above CPI over the hold.
• At $9,469/mo this rent would consume 215% of the median local household income ($53k/yr) (locally 1448% 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 132 days. Have you received any prior offers? Is the seller open to a 12% 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 1910 — 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?
• 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?