All Forum Posts by: Steele Dewald

Hi @Theresa Lanzdorf,

Typically management fees are based on a % of gross income. Some companies structure it differently but for the most part you'll see that.

I own and manage investment properties so feel free to reach out of you need help.

Best,

Steele

@Michael Kinsella thank you! Will have some updates in about 6 months.

Best,

Steele

@Dmitriy Fomichenko thank you! We'll see how it all works out. So far so good.

@Cody Benedetto I'm in the Park City market and I have started managing my clients properties at 10% to make the numbers work. The going rate for property management in Park City is 30-50% which makes it very difficult to cash flow at these prices.

@Rob Young I manage six rental properties and own three.  I am happy to share my numbers with you.  Depending on how the properties are purchased it is possible to see a 7-9% return on cash in the market right now.  

Steele

@Rohin Dhar I manage 6 investment properties and own 3 of them.  It can be very profitable if done the right way.  Message me, I am happy to share my rental numbers with you and give you a heads up on what to watch for.

Steele

Investment Info:

Condo fix & flip investment in Park City.

Purchase price: $585,000
Cash invested: $85,000

I bought a 1,100 sqft ski-in/out one-bedroom condo at the base of Park City Resort. Recently a two-bedroom sold for 760k. That two-bedroom is actually the exact same floorplan as the one-bedroom I bought only difference is that they added a bedroom. We are going to put about 50k into a remodel and add a bedroom and hopefully sell it in the 780-790k range in 6 months. If it is renting well on Airbnb we may hold it for longer.

@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

Investment Info:

Condo other investment in Park City.

Purchase price: $434,000
Cash invested: $43,000

Nightly rental property in Park City that grosses about 55-60k a year. We remodeled it and it is doing great.

How did you finance this deal?

Traditional financing as a second home

How did you add value to the deal?

Remodeled it with new paint, floors, appliances, and furniture. Cost about 12k all in and has paid off for Airbnb.

Investment Info:

Condo other investment in Park City.

Purchase price: $215,000
Cash invested: $55,000
Sale price: $275,000

Nightly rental property that grossed 44,449 in the third year.