Park City Utah Turnkeys

[Caroline Siller]

Never done this before! Looking for an area I should focus my researching on: I want to invest in a turnkey rental property in Park City Utah. My friend is a real estate worker there and Im wondering if anyone has advice on that area? Has anyone purchased a turnkey near there? Is it a good cheap area? Thank you!

[Steele Dewald]

@Caroline Siller Park City can be a very profitable town for investment properties.  I personally own 3 investment properties in town and manage 6.  However, there are some things you need to be aware of before buying.

1.  If you do not secure good property management it will be a losing investment from a cash flow perspective.  You should try to find smaller management companies that charge no more than 25%.  I manage my client's units at 10% just to make the numbers work.  It is very hard to make money let alone break even on a unit if you are being charged over 25%

2.  If possible you should try to self-manage.  This is by far the most profitable route and not just because you're not paying a fee.  For some reason, the bigger property management companies in town tend to really underperform on income compared to self-managed units. Some properties are much easier than others to self manage so I would look for those.  There are people in town that you can hire to run over to the unit and take care of clients if you get in a bind.  

3.  Financing is crucial in Park City.  I have a lot of clients that are very excited about interest rates but the reality is that many condos in Park City are considered condo-tels which can make it very difficult to get decent financing.  With that said there are a few developments that allow for traditional financing and are still ski-in/out.  You definitely want to try and find those.

4.  Just to give you a feel for what numbers are possible for income on a self-managed unit with no owner use here are some of my numbers.

315K studio 44,381 gross 9,254 net

275k studio 44,485 gross 14,879 net

434k one bedroom 58,967 gross 19,862 net

I hope this helps,

Steele DeWald