3 Key Things to Consider When Purchasing Your First Income Property.
I have a lot of clients who are interested in investment and income property in Park City and Deer Valley. The idea of having a business venture in such a beautiful area is appealing to so many. Those who love to ski, mountain bike, hike, golf, fly fish, you name it, Park City is just a great place to be.
The first question I ask investors to think about is if they plan to hold on to the property for a number of years. Much of the gains realized will be from appreciation, depending on the location. I don’t recommend quick flips. The Park City real estate market is pretty steady but there is always more risk with a flip. Why not hold onto the property for a number of years and enjoy using it on occasion? Remember why you were attracted to Park City in the first place.
Secondly, are you willing to do a remodel? If you are purchasing a rental income property, the nicer your accommodations the more rental income you can derive. Hire a licensed contractor and be smart about where to spend the money in a remodel. I can certainly help. With years of property management experience under my belt, I know what guests are looking for and I know what sells.
Third, location, location, location. This advice is always the best. The money you may save by purchasing farther away from the ski slopes can easily be made up with the higher rental income achieved from a remodeled ski in ski out or walk to ski property. Where would you want to stay as a guest? As close to the slopes and Historic Main Street Park City, as possible, right? As Park City grows, life is easier if you can walk to skiing, hiking and biking trails, dining and drinks.
And finally, absolutely and always, speak to your accountant and financial advisor about owning investment income property and the benefits of 1031 exchanges. Please give me a call for more information about more lucrative areas of Park City and Deer Valley income properties.