Quackenbush Realty - Serving Provo, UT and surrounding communities

While working and investing in the BYU market the past several years, I�ve noticed several different things.

I�ve noticed that that condos near campus have appreciated very well. I just talked to a friend who bought a Jamestown condo (approved for 4 and on condo row), for $129,900 two years ago, and a few weeks ago had someone come to his door and offer him $162,000. Now that�s appreciation!! However, the strange thing about condos on condo row is that they don�t cash flow. Apparently investors are banking on appreciation. On the other hand, condos farther from campus seem to cash flow nicely, but haven�t appreciated as well.

Although most duplexes/fourplexes near campus cash flow better than other investments, most of them are older homes that haven�t been maintained well, so you have to consider deferred maintenance when considering investing in one. I always recommend getting an inspection on any older home whether that is a professional inspection, or one the buyer does personally. Give me a call for the name of an inspector I really like.

I�ve also noticed that if you buy a multi-unit near campus and put some money into it and maintain it well, it should appreciate nicely. I bought a duplex in Provo and painted it, put tile in it, and pulled the carpet out and sanded the wood floors and sold it 1� years later for $30,000 more than I paid for it. Not bad.

Investment note: Property near campus generally has seen appreciation between 3-5% annually.

When considering buying any investment, there are three main elements of value to consider.

These are:

1) Square footage: Square footage is defined as livable space. Obviously, a home with more livable space is going to be worth more than one with less. A garage is not considered to be livable space.

2) Location: When you�re purchasing a home, it�s important to find a location where the homes are in the same economic condition. Generally, it�s wise to buy a home in the nicest neighborhood you can afford. A smaller home in the nice neighborhood you can afford is generally going to become a great investment.

3) Condition: Obviously, the condition of a property can affect its value a great deal. The age of a home should be considered and may affect its condition. Another thing to think about is that the condition of a home affects the marketability more than anything else when you decide to sell.