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

82 Properties
Page 1 of 7
$3,495,000
Neighborhood: Red Ledges
4
Beds
4F11/2
Baths
4,484
Sq.Ft.
2023
Year Built
2
Days on Site
12201966
MLS
NEW CONSTRUCTION Rambler in Red Ledges. This stunning new construction home has an anticipated completion date of May 2023. Located in the private community of Red Ledges, this home sits on a 0.77...
$800,000
Neighborhood: Empire Coalition
2
Beds
2
Baths
899
Sq.Ft.
1982
Year Built
2
Days on Site
12201967
MLS
*Ready to own in one of the most convenient locations in town? Look no further. Equipped for immediate owner or renter use, this adorable corner unit, Old Town condo provides the perfect opportunity...
Open 5/30
4328 Frost Haven Rd Park City, UT 84098
$2,850,000
Neighborhood: Frostwood Villas
4
Beds
3F11/2
Baths
2,623
Sq.Ft.
2019
Year Built
2
Days on Site
12201969
MLS
This beautiful townhome is ideally located in the Frostwood Villas neighborhood in Canyon's Village with close access to skiing and all the attractions and amenities of the Canyon's Base Village. The...
$1,075,000
Neighborhood: Brook Hollow Village
3
Beds
2
Baths
1,678
Sq.Ft.
1996
Year Built
2
Days on Site
12201970
MLS
Beautiful free-standing townhome in coveted Brook Hollow neighborhood. This home is steps from hiking and biking trails, acres & acres of soccer fields at Ecker Hill Middle School, shopping, dining,...
$729,000
Neighborhood: Pine Creek
3
Beds
2
Baths
1,264
Sq.Ft.
1996
Year Built
2
Days on Site
12201971
MLS
This 3-bed/2 bath condo has charm, character, and a garage! Nine-foot high ceilings and large windows on all sides let in the natural light from theeast, south, and west. Aspen trees and green spaces...
$2,895,000
Neighborhood: Trappers Cabins
3
Beds
1F13/411/2
Baths
2,208
Sq.Ft.
2008
Year Built
2
Days on Site
12201974
MLS
Bring only your golf clubs, skis, bikes, and instantly enjoy all that exclusive Promontory offers. This TURN-KEY 3 bedroom 2 1/2 bathroom Trappers Cabin is offered on a FULLY FURNISHED basis and...
$979,000
Neighborhood: Victorian Village
2
Beds
1F13/4
Baths
793
Sq.Ft.
1985
Year Built
2
Days on Site
12201427
MLS
Prime Location with a short walk to Park City Ski Resort, Old Town, shopping and world class restaurants. This is the besthome in the Victorian Village Condos. Home comes completely furnished. (see...
$1,150,000
Neighborhood: Cobblestone
5
Beds
3F11/2
Baths
3,939
Sq.Ft.
2006
Year Built
2
Days on Site
12201975
MLS
This elegant custom Cobblestone home sits on a corner lot, with a wide-open view of Mt. Timpanogos. Vaulted Ceilings and a thoughtful open floor plan allows living on the main with your master, guest...
$909,500
Neighborhood: Heber And Daniels Area
6
Beds
1F21/2
Baths
2,428
Sq.Ft.
1982
Year Built
2
Days on Site
12201977
MLS
Cozy rambler in the country on 1 acre! 6 bedrooms with a wood fireplace, wood stove, nice bright kitchen and oak-look laminate on the entire main level. Oversized garage that can fit extra cab trucks...
Open 5/28
75 S Center St Wallsburg, UT 84082
$649,000
Neighborhood: Wallsburg
4
Beds
1F13/4
Baths
2,650
Sq.Ft.
1970
Year Built
2
Days on Site
12201978
MLS
The wrap-around porch with views of the mountains, large yard/trees and sound of Spring Creek to the South of the property invite you to come home and enjoy the peaceful feeling of the Wallsburg...
Open 5/29
288 N 200 E Heber City, UT 84032
$550,000
Neighborhood: Other(Areas 23-41)
2
Beds
1
Baths
1,327
Sq.Ft.
1910
Year Built
2
Days on Site
12201980
MLS
A Charming cottage in the heart of Heber City, this 1 bedroom, 1 bath on the main floor also has a 20x20 upper area that could be another bedroom with an attached large 15x15 storage/closet area....
Open 5/28
831 N Explorer Peak Dr Heber City, UT 84032
$17,500,000
Neighborhood: Red Ledges
7
Beds
7F41/2
Baths
20,905
Sq.Ft.
2020
Year Built
2
Days on Site
12201982
MLS
Perched on top of the most prominent ridge in the gated Red Ledges community and featuring one of the most magnificent views in all of the Mountain West, this estate has been designed by...
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Post a Comment