8812 W 3100 S

Magna, UT 84044

$745,000D-

9 bd · 5.1 ba · 1,560 sqft · Built 1930 · MultiFamily · Active · 173 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $5,516/mo
• Mortgage (P&I): −$3,907
• Tax + insurance: −$676
• HOA: −$0
• Vac / Maint / Mgmt: −$1,158
• Net cashflow: $-225/mo
• Annual: $-2,697/yr
• Cap rate: 5.93%
• Cash-on-cash: -1.29%
• DSCR: 0.94
• 1% rule: 0.74%
• Cash to close: $208,600

Investor read

• This is a 3 × 3-bed/1.7-bath units multifamily listed at $745k.
• At list price, monthly cash flow is $-225 ($-3k/yr) — negative. Per door: $-75/mo.
• To cash-flow at today's rent, offer at most $705k (5.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $552k (26.0% below list).
• It's been on market 173 days — a 12% lower offer ($656k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $552k (26.0% 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 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: Pleasant Green School (math 14% / reading 17%, grade F, #554 of 585 statewide, top 95%, 445 students, 56% FRL); Cyprus High (math 11% / reading 33%, grade F, #150 of 171 statewide, top 88%, 2,709 students, 47% FRL).
• Watch-outs: built in 1930 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 209 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 22y 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 8→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• At $5,516/mo this rent would consume 73% 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

• 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?
• It's been on market 173 days. Have you received any prior offers? Is the seller open to a 26% 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 1930 — 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 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?