I'm assuming it's in/near the Avenues or 9th/9th area? How much could you reasonably get in rent? I sold all my SLC rentals a few years ago when their values inflated to the moon - at current prices, I've seen nothing interesting in years.
If you want to live there and you're confident in your job security, go for it. There's a decent chance you can get a way better deal (though let's all hope not) in 6 months. There's also a chance that you won't.
Given your income, I'd personally just keep renting and wait/build up some spare funds. But this is at least half an emotional/QOL decision, which nobody but you can answer.
Forget the "hold onto it as a rental" idea, though, unless rents go through the roof in the next few years.
-W
I would imagine prior to current events I could rent the whole house for 1800 no problem (mortage is about 1600). Its about 10 blocks south of 9th and 9th. It has enough space for an ADU, or if I add kitchen to the basement I could have two separate units by the time I'm ready to move. Also has big fenced backyard that could be dog friendly which is often an issue for SLC renters. In 5 years with full recovery I would imagine rent would be at least current prices if not a little more. As you know, SLC home prices have sky rocketed, but rent has remained fairly affordable. In my own head if I were to "hold onto it as a rental", my thought is I would rent it with minimal to moderate return until its worth to sell at a much higher price. I can easily rent it to medical residents for 2-3 years at a time through my hospital and several coworkers do that which is very convenient. Also, the Mormon community have lots of kids, and native Utahns are generally quite attached to Utah, so I could definitely see Salt Lake turning into somewhere like Seattle or San Fran 20 years down the road (less geographic restraints will probably prevent it to some extent).
FINate, to answer your questions
1. Personally, yes it made sense. I had pretty cheap rent, but lived with roommates in a great location but somewhat dumpy duplex with my wife and roommate. In terms of wanting home ownership, I think it is hard to truly know having never owned a house, but it is move in ready and all the projects I hope to do will not be because I have to do them, but because I want to do them. Also, I do feel like owning a house will make Salt Lake City feel more like home rather than a temporary stop. I can also remain mustachian in that I can continue to get to work on either bike or bus which is a huge deal to me as I despise commuting.
In terms of emergency fund, yes I hope to increase this soon. I had been putting money aside just a few months before this house fell into my lap. Any recommendations on about what I should aim for?
2. At a price of 340k, I felt I truly got one of the last "good deals" in Salt Lake. Even with a 15% correction, I would say it would end up being a fair deal. I would say for the last couple decades homes here were undervalued from what I have heard, as Salt Lake was generally a moderate-sized LDS city, but the secrets out and tons of transplants are ending up here with the strong job market for healthcare, engineering/tech/software and extremely close access to the mountains. Until now, the market was definitely seemed to be to be overvalued, but there are so many solid middle class first time home buyers (and Californians) every house in the 370 to 400k range was getting multiple offers and bidding wars were bringing most houses up 30k from asking.
Ultimately I am probably going to go for it, I may have to suppress my desire to look at it as an investment property, but I do think it has a ton of potential. I am also concerned available listings will significantly decrease over the next 6 to 8 months as people wait for things to recover, but obviously that can only occur for so long before people are forced to sell if they are losing jobs.
