A Guide to Investing in Park City & Deer Valley Real Estate
Investing in Park City, Ut real estate is one of the oldest and most popular asset classes for the wealthy and wise. Most new investors in Park City have multiple properties in different areas of the United States or World and rent their properties on a short term basis with light personal use. It is common for investors and developers in other areas of the united states to purchase properties here in Park City.
Below we will discuss the different types of real estate investments and you'll learn more Park City real estate investing.
The Best Short Term Rentals Areas in Park City
The search for investment properties around Park City usually starts around Park City Mountain Resort (Old Town), Deer Valley Resort Area, and The Canyons Village. A large portion of these areas allows for short term rentals, also known as nightly rentals, and the best chance for the highest return on investment via rental income.
There is a premium when purchasing and renting ski-in-ski-out properties and allow the investor to maximize profits of the peak ski season. Old Town also allows for property owners to get higher rents during the Sundance Film Festival. In my experience, many of the owners in Deer Valley do not rent their properties on a short term or long term basis but sometimes they may offset some of their costs of ownership by renting their property during the peak times of Christmas, New Year, and Presidents Day.
The Different Types of Investment and Rental Properties in Deer Valley and Park City, Ut
The Park City MLS allows for properties to be labeled seven different ways which can be seen below. The best way to search for properties is by using the IDX map search or neighborhood page. The map search allows you to select your price point, type of property, and many other features such as area or nightly rentals.
The general rule of thumb is the closer you are the resorts the higher your gross rental revenue. The nightly rental number is only as accurate as the listing agent puts the information into the MLS - search all properties and if you have any questions feel free to reach out to me to discuss the options.
Homes: When investing in Park City homes, it should be noted that they may or may not allow for short-term rentals. The location and proximity to the ski resort will play a large role in the property value and rental possibilities.
Condos: Condos for sale can be found throughout Park City. The homeowner association fees tend to start around $350 per month and work their way up to over $50,000 per year. The HOA fees will be subtracted from your gross revenue so it is important to pay attention to the fees when you are considering purchasing a Park City condo. The HOA fees can also add value to the property by keeping the property in good condition which makes it easier to rent.
Townhouse: Townhomes can stand alone in your real estate search but they are also pulled in within the condo search. Townhomes tend to be larger than condos and possibly live more like a single-family home.
Vacant Land: If you are considering purchasing land for sale in Park City you will be looking for appreciation. This speculative play may reap large rewards but you will not have rental income during your time of ownership. There is also a possibility that the land has HOA fees, typically lower than a property with a home on it, but HOA fees are worth taking into consideration.
Commercial: Commerical real estate in Park City tends to be office buildings. In Park City, commercial real estate is marketed much like our luxury properties and many of the properties for sale will be on the Park City MLS and this website. I strickly work residential real estate but work with several commercial real estate agents that can help provide the real estate expertise that you're looking for when buying commercial property.
Fractional: Fractional ownership is structured much like a timeshare but you actually own the property and not a piece of paper. While there are some investors that prefer fractional ownership I personally tend to shy away from the property type because of their lack of liquidity and weak appreciation. I'd rather have full ownership of a smaller condo and more control over when I'm able to rent or use the property.
Multi-Unit: This is a new property type in the Park City MLS and our area doesn't provide many multi-family or multi-unit properties. There are several multi-unit properties that sell each year.
Items to Consider when Buying Park City Investment Properties
Much of my business is from second homeowners and they are very similar to investment properties. Park City investors are looking for a turn-key vacation rental where they can own it from another state and not worry about issues that may arise. When you work with me you'll have all the tools you need for an easy remodel, designers, property management, and a full overview of the Park City real estate market.
Derrik Carlson has personally owned, managed, and raised financing for many of his own investment properties. This information is reliable but it is not, in any way shape or form, investment advice.