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

101 Properties
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$18,500,000
Neighborhood: Park Meadows
6
Beds
3F33/411/2
Baths
11,106
Sq.Ft.
2015
Year Built
1
Day on Site
12301769
MLS
Nestled on the crest of Quarry Mountain, this extraordinary property offers more than just breathtaking views; it provides an intimate connection to the natural beauty that defines the region. The...
$1,900,000
Neighborhood: Wallsburg
6
Beds
4
Baths
4,578
Sq.Ft.
1997
Year Built
1
Day on Site
12301751
MLS
Come live in a Custom built home in the quaint little town of Wallsburg! 15.61 acres Mountain views looking over Little valley!! The home was built in 1997 by a builder that intended on occupying the...
Pending
1051 Station Loop Rd Park City,  UT 84098
$1,399,000
Neighborhood: Blackhawk Station
3
Beds
1F13/411/2
Baths
1,932
Sq.Ft.
2001
Year Built
1
Day on Site
12301168
MLS
Enjoy the Park City lifestyle from this 3BD 3BA home in Blackhawk Station. Close to everything Park City has to offer, with Kimball Junction just around the corner, and Historic Main Street 10...
$7,250,000
Neighborhood: Old Town Area
4
Beds
1F43/411/2
Baths
4,692
Sq.Ft.
2017
Year Built
1
Day on Site
12301773
MLS
Perched majestically above Old Town, this extraordinary Park City residence boasts 4 bedrooms and 6 bathrooms, offering a truly remarkable living experience. Spectacular vistas of the city and...
$681,000
Neighborhood: Fox Bay
2
Beds
1F13/4
Baths
1,028
Sq.Ft.
2002
Year Built
1
Day on Site
12301772
MLS
Time to start loving where you live. Welcome to this stunning condo nestled in the beautiful community of Fox Bay. This exceptional location offers a serene and picturesque mountain setting, perfect...
$4,000,000
Neighborhood: Shooting Star
3
Beds
2F13/411/2
Baths
2,114
Sq.Ft.
2006
Year Built
1
Day on Site
12301774
MLS
Ideally situated third floor unit at Shooting Star in Empire Pass at Deer Valley Resort. The unit has beautiful Deer Valley views and is located on the corner of the building with a wraparound deck....
Open 6/3
1231 W Wintercress Trl Heber City,  UT 84032
$1,195,000
Neighborhood: Black Rock Ridge
3
Beds
2F11/2
Baths
2,494
Sq.Ft.
2016
Year Built
1
Day on Site
12301776
MLS
Relax as you enjoy your unobstructed Park City and Deer Valley views in one of the most private townhomes in all of Black Rock Ridge.Whether your perspective is from the oversized covered outdoor...
Open 6/4
2344 Saddlehorn Dr Park City,  UT 84098
$3,000,000
Neighborhood: Bison Bluffs
5
Beds
4F11/2
Baths
4,331
Sq.Ft.
2008
Year Built
1
Day on Site
12301777
MLS
This exquisitely designed 5 Bedroom 5 bath home located in the very desirable Bison Bluffs neighborhood which boasts many full-time residents and a close proximity to trails. This 4331 Square Foot...
Pending
16 Lucky Star Dr Park City,  UT 84060
$5,250,000
Neighborhood: Bellearbor
4
Beds
4F11/2
Baths
4,143
Sq.Ft.
2004
Year Built
1
Day on Site
12301778
MLS
The spacious great room has double height windows looking west to the mountains and a wood covered vaulted ceiling, large stone, wood-burning fireplace all with a traditional elegance. The main level...
$1,610,000
Neighborhood: Rustler At Hideout Canyon
3
Beds
2F13/411/2
Baths
2,902
Sq.Ft.
2013
Year Built
1
Day on Site
12301377
MLS
Check out all the wow this home has to offer... Views Views and More Views. , built-in shelves for each of the closets, including the pantry, Dual zone heating and air conditioning, tankless water...
$1,299,000
Neighborhood: Midway
5
Beds
3F11/2
Baths
4,197
Sq.Ft.
2003
Year Built
1
Day on Site
12301779
MLS
This lovely Midway home is situated on a shady, fenced lot above the Heber Valley floor in the quiet neighborhood of Alpenhof Estates (no HOA here!). Convenient Main Level living with two bedrooms...
$1,125,000
Neighborhood: Valley Hills
7
Beds
3F11/2
Baths
5,050
Sq.Ft.
2000
Year Built
1
Day on Site
12301780
MLS
Enter this spacious 7 bed/3.5 bath Valley Hills home through the beautiful entryway past the formal dining room or luxurious home office and into the great room with its vaulted ceiling, gas...
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