In Park City, Utah, the tourists outnumber the locals 75 to 1. The area has incredible ski conditions in the winter, as well as gorgeous summer weather that rarely gets above 90°F. The incredible snowfall makes resident ski resorts, Deer Valley and Park City Mountain, extremely popular.
Even if you don’t dig winter sports, the tourism attention – plus the fact that the city hosts the Sundance Film Festival every January – has made this mountainous community a paradise for anyone who loves good food, celebrity spotting, and a wide variety of entertainment options. All these amenities have made this vibrant resort town the ideal location for a rental property investment.
Whether you live in town or just love to visit, buying rental properties in Park City is a great way to take advantage of the more than $500 million tourism dollars that come through this incredible city every year. It’s a big step, but there’s no need to be afraid! Today, we’ll guide you through all the things you should consider when securing an investment property in this mountain paradise.
1. Explore the Ins and Outs of Investment Properties
Before diving into the market, take a deep breath and make sure the challenge of owning a home that you don’t live in full time is something that appeals to you. Whether your goal is immediate cash flow or diversifying your investment portfolio, make sure your end goal is clear. To gain some valuable perspective, speak to some local landlords or Airbnb hosts, and ask if they’ll tell you about their ownership experience.
2. Make a Budget
Any investment with as many advantages as the rental business comes with a cost. Before you head in to consult with pros to sort out your financing, you’ll need to get your own financial house in order. Sit down and figure out how much money you can save for a down payment, how much you’d be comfortable spending on repairs, regular maintenance, property taxes, and all the other expenses associated with property ownership.
3. Check Out Financing
Before you start the search for a home, you’ll need to get prequalified so you know how much financing is available to you. Homie Loans™ is a great place to start when you’re looking for homes for sale in Park City. Don’t settle for an interest rate that will cost you thousands more than you should be paying in the long run!
4. Study Up on Buying in Park City
Park City might not be large but there are distinct neighborhoods that each come with their own advantages. Before you buy, take some time to evaluate each neighborhood. When you’re looking for rental properties to buy in Park City rather than a family home, the criteria may be a bit different.
The Old Town is fantastic for walkability which is why many rentals are located there, but if you’re trying to attract a longer-term renter, a larger family home in the Aerie or Prospector neighborhoods may be a better choice. It’s also a good idea to check out the typical prices in each neighborhood, and compare them to your ideal budget.
5. Turn to a Pro for Help
When you start looking for a home or investment property, you’ll quickly realize just how many people are involved in the buying and selling process. In most traditional real estate deals, the buyer and seller are represented by separate agents who may take up to 6% of the total transaction as their fee. Then there are the other professionals: inspectors, appraisers, title officers – the list goes on. If you don’t have a central hub for your real estate transaction, it can be difficult to keep track of who you’ve hired, as well as the fees they’re owed.
6. Find a Turnkey Property
If you’re not looking to put a lot of work into an investment property before putting it out on the market for renters, look for a turnkey property. This type of property is ready for rental immediately and typically doesn’t come with any of the issues found in fixer-uppers. You’ll likely pay more upfront, but you won’t have to worry about supervising repairs or upgrades. If you live out of town but still want to buy in Park City, this is a great option.
7. Start Small
If you’re new to the rental market and you’re eager to get started, it’s tempting to jump in with a multifamily property, or one that needs some upgrades. If you’re looking for increased revenue or fun DIY projects, these might seem appealing.
However, if you’re just beginning the journey of figuring out how to buy a home in Park City, there’s no reason to rush. Start small, with an Old Town condo or a less-expensive family home away from the hustle and bustle of the city center. You can always flip the property and buy a larger rental later on, or add to your portfolio once you’re more comfortable.
Use Homie for an All-in-One Solution
Purchasing an investment property is an exciting milestone. With so many people joined by their shared love of the outdoors, great food, and physical hobbies like skiing, mountain biking, and snowboarding, Park City is an exciting and welcoming community.
When it comes to the actual purchase, buying with Homie can make your life a lot easier. Our easy-to-use service lets you browse homes, schedule tours, and talk to agents with just one click. You’ve gained the expertise and gathered together the capital, so we believe that you should get to keep all the equity, too. That’s why we’re giving qualifying buyers up to $5,000 back when you use us as your buyer’s agent. Start searching for your next Park City property today.