Park City Utah Rental Xmas

[RiverOtter]

Our association dues are extremely reasonable. Each property is different of course, but I have found the dues very low in comparison to our beach property.

As far as purchasing, there are still some good buys in the Park City area, but the time to grab a bargain has come and gone. A year to 1.5 years ago, it was a buyer's market and prices were very low compared to the post 'we won the Olympics' hoopla of 1996-1998. There was even a developer auction on a 5 star property at the Canyons in Feb 2004 where great bargains could be had (I got one).

Since last October,things have taken on a 30-A type jump, although not quite to that extreme, but some properties have doubled. I looked at a studio on Main Street in Oct last year. Listed at 99k (a steal) but when I called it was gone. Right at that moment was when things took off. That studio is now around 175k.

I did get into a contract on a preconstruction property at the Canyons in February 2005 which I thought was a bargain at the time. I believe the developer priced things and did not adjust when the market took off. I am quite happy with the pricing for phase 2.

Most rental agencies do take 40% in Utah, but some things are included that I find are not included in Sowal (cleaning on every management company rental being one). In Colorado, it's usually 45-48%.

Seems like the rents are extremely high. Do the units come close to cash flowing?

 

[spinDrAtl]

The rental rates I quoted are for ski in/out property. Rents vary greatly by proximity to the mountain (as do unit costs). My properties do either cash flow or come very close on a true cash flow basis (and better after taxes).

However, there is no cut and dried answer to your question - it all depends. As with any investment property purchase, you have to do your homework. What price did you pay (and did you overpay), what kind of mortgage program did you do, are your hoa dues reasonable, if you use a management company, are they good and do they keep your property rented, are you willing to do some rental legwork yourself to fill empty nights, etc etc.

 

[RiverOtter]

The rental rates I quoted are for ski in/out property. Rents vary greatly by proximity to the mountain (as do unit costs). My properties do either cash flow or come very close on a true cash flow basis (and better after taxes).

However, there is no cut and dried answer to your question - it all depends. As with any investment property purchase, you have to do your homework. What price did you pay (and did you overpay), what kind of mortgage program did you do, are your hoa dues reasonable, if you use a management company, are they good and do they keep your property rented, are you willing to do some rental legwork yourself to fill empty nights, etc etc.

Thanks for the info. I'll be PMin' you soon. ;-)