4 Major Tips to Buying a Rental Property

Park City Utah is a great place to consider a rental home. Vacation property, house or a condo are all great options in this vacation destination. From ski-in and ski-out condos to luxury mountain homes. 4 Major Tips to Buying a Rental Property

The interest in purchasing rental property has increased in recent years. It is said that this is partly because of a jump in inflation in the price of homes, historically low-interest rates, and a larger number of millennial-aged buyers choosing to rent instead of own property.

Real estate is now becoming the American favorite long-term investment purchase according to a recent study that was conducted by Bankrate, investing in real estate has been consistently ranked as the top choice for investment since 2012 in America.

Should you purchase a rental property? Some real estate experts say it is a very good investment as long as you do your homework and determine that it really is a viable investment for you.

Here are some things to consider when buying a rental property

First, determine if purchasing an investment rental property is the right investment for your personal situation

There are many TV shows out there that sensationalize and romanticize the idea of becoming an investment property owner. They make it look like fast and easy quick money; like a lucrative investment. To make the most of a rental property however it requires very solid knowledge of your financial situation and the rental market in which a property exists as well as expert knowledge of the area’s landlord and tenant laws.

It is also a good idea to determine if you have enough time to become an actual landlord or enough money to hire the most reputable and trustworthy of property managers. Several people get into the rental business without realizing exactly how much work it takes and that it is more of a long-term wealth investment.

Determine whether you should purchase with cash or finance the property

Some financial experts will advise that you should only get yourself into the rental business if you can pay all cash for the property, but there are some that say financing the purchase could still be beneficial. When purchasing a rental property, you will need to decipher if the income will able to easily cover the cost of financing the property.

In some cases, financing a property more than pays for the mortgage payments itself will earn you double investment credit with the benefits of paying off a loan while keeping your cash in your pocket.

Find an amazing location

Just because a home is empty and available doesn’t mean that it will easily be turned into a rental. The best location of a rental property is the one where appreciation is high and there is easy means of finding a responsible tenant. In some cases going for a property that you know will have an optimal appreciation, if you plan to hold onto it for several years, will be the better way to go.

Make sure you have a budget for the unexpected

There are several expenses that can pop up with owning a rental property. If you do not have a reserve of funds to take care of any of these needs you could find yourself in a very sticky situation that may cause you to be in financial turmoil. Experts advise that landlords should have about 20 to 30% of the rental income kept in a rainy-day fund for maintenance and emergencies that may happen at the property.

Additional: How to find the right contractor for a construction project

Rental properties can be an amazing and excellent investment when you approach it in a very businesslike and professional manor, and are extremely realistic about the laws and expectations as well as the slow income growth over the long term.

Contact my office below for more information on rental properties in and around the Park City real estate area.

Related: 5 Things to Look for in a Golfing Community

46 Properties
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$1,550,000
Neighborhood: Shoreline
3
Beds
3F11/2
Baths
3,030
Sq.Ft.
2023
Year Built
2
Days on Site
12300269
MLS
All Pre sheetrock options included.Buyer can still select all the Finish options.Call and set up a time to come in or just stop by we would love to show you how great Shoreline is.All photos are of...
$969,000
Neighborhood: Heber City
5
Beds
3F11/2
Baths
3,656
Sq.Ft.
1998
Year Built
2
Days on Site
12300270
MLS
Beautifully landscaped open floor plan rambler with unobstructed views of the Heber Valley and surrounding mountains, including Mount Timpanogos! The property behind is designated open space and the...
$1,325,000
Neighborhood: Blackstone Flats
2
Beds
1F13/4
Baths
1,160
Sq.Ft.
2019
Year Built
3
Days on Site
12300248
MLS
This modern ground-level unit is perfect for a year-round residence or seasonal ski getaway. It offers an expansive living space with tall ceilings and large windows which allow for tons of natural...
$1,525,000
Neighborhood: Blackstone Flats
2
Beds
1F13/411/2
Baths
1,160
Sq.Ft.
2019
Year Built
3
Days on Site
12300249
MLS
This contemporary ski condo is located on the top-floor of Blackstone Flats. It is offered turnkey and features an open floor plan with spacious living area, high ceilings, expansive windows allowing...
$4,500,000
Neighborhood: Resort Center
4
Beds
4
Baths
2,713
Sq.Ft.
1985
Year Built
3
Days on Site
12300231
MLS
This is a unique opportunity to own the incredibly rare 4 bedroom ski in/out presidential suite at Park City Resort. The unit features amazing ski run views, two primary suites, 4 full bathrooms, 4...
$50,000,000
Neighborhood: Colony At White Pine Canyon
6
Beds
2F63/431/2
Baths
17,567
Sq.Ft.
2022
Year Built
3
Days on Site
12300255
MLS
Presenting ''Monitor's Rest'', winner of the distinguished Robb Report Best of the Best award for 'Best Amenities'. Nestled mountainside at the base of Monitor Bowl on Park City Mountain Resort, this...
$1,695,900
Neighborhood: Shoreline
3
Beds
2F13/411/2
Baths
3,161
Sq.Ft.
2022
Year Built
3
Days on Site
12203723
MLS
Dont wait!. Start enjoying your amazing Shoreline home now.The home is fully finished with every bell and whistle imaginable. Dont take my word for it stop in to see for yourself.
$950,000
Neighborhood: Silver Creek Village
4
Beds
3F11/2
Baths
2,782
Sq.Ft.
2022
Year Built
3
Days on Site
12300257
MLS
Amazing new single family home in Park City's latest master-planned Community, Silver Creek Village. **Includes finished basement! Built by premier builder, Hillwood Homes, this well-designed home...
$764,000
Neighborhood: Red Pine
2
Beds
2
Baths
1,080
Sq.Ft.
1979
Year Built
3
Days on Site
12300261
MLS
Excellent opportunity to own this remodeled Red Pine condo at the base of Canyons Village at Park City Mountain. This fully furnished condo has plenty of room for all and sleeps up to 10 with 2...
$408,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
338
Sq.Ft.
2020
Year Built
3
Days on Site
12300262
MLS
This Amazing Studio TOP FLOOR with ski mountain views where you can feel the energy of the Ski Mountain. This condo sleep 4 people comfortably.The YOTELPAD is conveniently located in the heart of...
$7,495,000
Neighborhood: Elevation At Canyons Village
5
Beds
5F21/2
Baths
4,923
Sq.Ft.
2024
Year Built
3
Days on Site
12300263
MLS
Elevation at Canyons Village is (6) townhomes with direct ski access to Canyons Village at Park City. Owners and their guests will enjoy full access to Hyatt Centric amenities, shuttle and...
$2,500,000
Neighborhood: Ridgepoint
3
Beds
1F13/4
Baths
1,632
Sq.Ft.
1985
Year Built
3
Days on Site
12300265
MLS
This beautifully renovated 3-bedroom villa is located in the Ridgepoint development at the top of Deer Valley Resort. Enjoy the majestic mountain and ski run views from this quiet and tranquil...
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