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

40 Properties
Page 1 of 4
$1,300,000
Neighborhood: Black Rock Luxury Condos
2
Beds
1F13/4
Baths
1,278
Sq.Ft.
2021
Year Built
1
Day on Site
12203973
MLS
The Black Rock Luxury condos are the perfect location for a mountain escape. The resort is conveniently located whether you want to enjoy water sports at Jordanelle, take a scenic tour of the Unita...
3
Beds
2
Baths
1,406
Sq.Ft.
2022
Year Built
2
Days on Site
12203960
MLS
The highly anticipated arrival of the Sawmill Condos have arrived. Come see your new home in the beautiful Sawmill community. Featuring 9' ceilings with plenty of space in the open living area. Large...
$637,000
Neighborhood: Wasatch Front Ar 58
3
Beds
1F13/411/2
Baths
1,783
Sq.Ft.
2019
Year Built
2
Days on Site
12203961
MLS
Welcome to this amazing townhome with excellent opportunities for short and long term rentals, and perfect for any small family. It has been meticulously loved, maintained, and upgraded by owners to...
Open 9/28
6605 W 2200 Park City, UT 84098
$595,000
Neighborhood: Crestview Condos
2
Beds
3
Baths
1,458
Sq.Ft.
2001
Year Built
2
Days on Site
12203962
MLS
This 2 bed, 3 full bath condo offers a spacious, light filled living area, gas fireplace, oversized deck with great views of the Wasatch Mountains, large vaulted master bedroom and an open loft...
$699,500
Neighborhood: Wasatch Front Ar 58
2
Beds
1
Baths
2,567
Sq.Ft.
1950
Year Built
2
Days on Site
12203963
MLS
Location, Location, LocationLocated in highly coveted Sugarhouse. Access to University of Utah, ski resorts in Little and Big Cottonwood Canyons along with easy access to I-80 to Park City Resort....
Open 9/28
7415 Brook Hollow Loop Rd Park City, UT 84098
$975,000
Neighborhood: Brook Hollow Village
3
Beds
2
Baths
1,750
Sq.Ft.
1996
Year Built
2
Days on Site
12203964
MLS
This light & bright home in Brook Hollow Village offers the best of both worlds - the privacy of single family home living with no shared walls, as well as the ease of condo living in a managed...
Open 9/28
1415 Lowell Ave Park City, UT 84060
$2,100,000
Neighborhood: Resort Center
4
Beds
2F11/2
Baths
1,463
Sq.Ft.
1985
Year Built
2
Days on Site
12203965
MLS
Rare 4 Bedroom ski-in / ski-out condo at Park City Mountain Resort - just steps from Park City's ski slopes, ice skating rink, summer trails, and free bus line to Main St. This 2-story, fully...
$2,000,000
Neighborhood: Payday
3
Beds
3
Baths
1,756
Sq.Ft.
1972
Year Built
2
Days on Site
12203967
MLS
This stunning & highly desired upper floor Payday townhome is ideally situated to provide an abundance of natural light while offering splendid mountain & golf course views. The property was fully...
$1,150,000
Neighborhood: Timberlakes Area
6
Beds
3F23/4
Baths
3,658
Sq.Ft.
1988
Year Built
3
Days on Site
12203940
MLS
Amazing and unique property located on a tree lot in upper Timber Lakes with an ADU (non-conforming). Ultimate outdoor enthusiasts dream! Snowmobile directly from your garage! Access to all outdoor...
$715,000
Neighborhood: Grassy Creek
3
Beds
2F13/4
Baths
1,990
Sq.Ft.
2002
Year Built
3
Days on Site
12202934
MLS
Come see this great family home in an established neighborhood in the Kamas Valley. Expansive lower level family room, two car garage, well maintained yard that features a greenhouse and hot tub....
$1,600,000
Neighborhood: Oakley
6
Beds
3F13/411/2
Baths
6,476
Sq.Ft.
1982
Year Built
3
Days on Site
12203946
MLS
Meticulously maintained and built like a fortress, this vintage ranch home is perfect for your HGTV dream home renovation. It is sited on a huge, private lot, with breathtaking views of Hoyts Peak....
Open 9/28
2348 W Red Pine Rd Park City, UT 84098
$8,900,000
Neighborhood: Timberwolf Estates
4
Beds
6F11/2
Baths
7,490
Sq.Ft.
2013
Year Built
3
Days on Site
12203947
MLS
Rarely does the opportunity present itself to own a private, ski-in, ski-out, architectural gem in Timberwolf Estates, adjacent to Canyons Village. This masterful design by Michael Upwall and...
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