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

19 Properties
Page 1 of 2
$850,000
Subdivision: Willow Ranch
2
Beds
2
Baths
1,176
Sq.Ft.
1979
Year Built
1
Day on Site
12104651
MLS
If you crave privacy this unit has it. Located on the main flood, an end unit and on a cul-de-sac, this unit has two decks that walk out into a park like setting. There is nothing else to see from...
$470,000
Subdivision: Park West/Hidden Creek
1
Beds
1
Baths
592
Sq.Ft.
1976
Year Built
1
Day on Site
12104650
MLS
Located within Canyons Village at the base of Park City Mountain, this ground floor unit has been nicely updated. The kitchen is fully equipped with stainless steel appliances, tile flooring, and...
$1,300,000
Subdivision: Fiddich Glen
3
Beds
1F23/411/2
Baths
1,752
Sq.Ft.
2016
Year Built
2
Days on Site
12104649
MLS
Beautiful townhome with unobstructed views of Deer Valley Ski Resort off 2 decks and patio - large open space in front of the unit - views will remain protected! Unbeatable location - close to...
$2,295,000
Subdivision: Silver Springs
4
Beds
3
Baths
2,764
Sq.Ft.
1980
Year Built
3
Days on Site
12104647
MLS
A great opportunity for family living in the desirable Silver Springs neighborhood, move-in ready. Great open concept plan, plenty of natural light, two decks and large patio. A great room with...
$199,000
Subdivision: Utah Area
3
Beds
1
Baths
1,032
Sq.Ft.
1951
Year Built
4
Days on Site
12104639
MLS
Storybook-worthy remodeled home with a large open yard. Come home to this clean and bright rambler. This home includes a new roof, appliances, fixtures, tile, paint and more. Must see to appreciate!
$1,899,000
Subdivision: Wasatch Front Ar 58
3
Beds
2F11/2
Baths
3,266
Sq.Ft.
2021
Year Built
4
Days on Site
12104641
MLS
Welcome to your Mountain Retreat in this newly built Custom Home! This beautiful luxury home is in Utah's iconic Big Cottonwood Canyon just minutes from World Class Skiing, Mountain Biking, Hiking &...
$450,000
Subdivision: The Hamlet
3
Beds
2F11/2
Baths
1,543
Sq.Ft.
2002
Year Built
4
Days on Site
12104642
MLS
Corner unit backs to open space, wood laminate floors on the main level, solid surface counters, updated wood cabinets, stainless appliances, gas fireplace, freshly painted interior, and new carpet...
$2,350,000
Subdivision: Ecker Hill
6
Beds
5F11/2
Baths
6,753
Sq.Ft.
1991
Year Built
4
Days on Site
12104644
MLS
This amazing home is secluded in the trees with beautiful wooded and mountain views in an Upper Pinebrook cul de sac like none other. The home has stunning architectural details through plus large...
$1,700,000
Subdivision: Red Ledges
3
Beds
3F11/2
Baths
2,419
Sq.Ft.
2022
Year Built
5
Days on Site
12104619
MLS
The newest neighborhood at Red Ledges, built by Red LedgesHomebuilding, is the Village Center Cabins. This neighborhoodwill consist of 17 three bedroom cabins. The cabins are stepsaway from the...
$1,095,000
Subdivision: Summit Park
4
Beds
2F11/2
Baths
1,848
Sq.Ft.
1991
Year Built
5
Days on Site
12104620
MLS
Located upon 0.31 wooded acres is this beautifully updated property in the mountain setting of Summit Park, Park City. Boasting a comfortable, open floorplan, views toward the Uinta Mountain Range,...
$2,495,000
Subdivision: Benloch Ranch
5
Beds
6F11/2
Baths
5,015
Sq.Ft.
2022
Year Built
5
Days on Site
12104621
MLS
Highlander Model: Introducing the 1st vertical development phase at Benloch Ranch, a master planned community of more than 2,300 acres along Highway 32, just south of the Jordanelle Reservoir,...
$6,400,000
Subdivision: Aspen Camp
5
Beds
3F23/421/2
Baths
7,456
Sq.Ft.
2016
Year Built
5
Days on Site
12104622
MLS
This stunning, custom, 5 bedroom plus separate office Promontory home is an entertainer's and family dream! Situated on 1.12 acres, the home offers a bright and open floor plan featuring views of the...
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