Tuesday, December 06, 2005

Cedar City Real Estate

Well it has been almost a month since I last posted so I thought it was time for me to add more investments considering all the ones I posted have long since sold. First I would like to address this notion of the bubble bursting. While it sounds dramatic in reality it will be more like a balloon slowly deflating if it happens at all. I tend to think that Cedar City Real Estate will be protected because we are experiencing a high growth rate that will sustain the prices. Of course it will have to slow down but that is a good thing. Slowing down is a far cry from the bubble bursting. Cedar City is already about 30% lower then St. George prices. That combined with the fact that most of the people buying new homes in Cedar City are paying with cash I think will protect Cedar City. Ok enough of the Doom and Gloom. Lets get to the fun stuff.

The first development property I wanted to show is a big one. It is 70 Acres of Prime High Density acreage. It is already zoned for 24 units per acre. It is ideally located in Fiddlers Canyon so it would make for a great Upscale Apartment or Upscale Condo complex. These are both things Cedar City is in Desperate need of. In fact if someone wanted to do high quality condos with upgraded appliances for around 250k-300k in a gated type community I believe I would have them sold out before they completed them. This property being that it is located in the prestigious Fiddlers Canyon area would be ideal for this.

The Second property I have found that would be a steal for a developer would be the Hunters Glenn Subdivision. It is already plated and approved for 275 .25 acre lots. The seller wants to gross around 11 million but would be willing to look at all offers. $40,000 dollars for a paper lot then add around 20-25k for improvements for a total of about $65,000 dollars per lot. Across the street in Equestrian Point selling .25 acre lots for close to $100,000 dollars a per .25 acre lot. So you see the potential to make a lot of money is still there.

The last property is more for the lower end investor. On 95 North 700 West (across the street from SUU and the LDS institute building there is a home for sale for $219,000. It is currently 3 bedrooms 1 bathroom with a half finished basement. It could easily be converted into a 5 bedroom 2 bathroom income property. Currently in Cedar City the average room rent is 300 dollars per room + utilities. So if you bought this for 215ish and put another 25,000 dollars into finishing the basement with a bathroom and converting the second family room into 2 or 3 good sized rooms you could easily obtain a positive cash flow. This doesn't include the all the tax advantages you would gain from the property.

I hope this advise helps and if you just want to search the Iron County MLS for yourself check out my personal website at http://www.cedarcityonline.com