The Park City Area is seen as the economic engine of Vermont; home to two colleges including The University of Utah, and Brigham Young University; with major employers such as The University of Utah Medical Center, Dealer.com, and Seventh Generation help to propel the demand for rental units.
Real estate investors have been pulled to the area by another unique attraction: a historically robust market for Multi-Family properties.
Park City has quite the reputation for its top-notch quality of life given the pristine setting on the Mountains of Wasatch Front and its lively arts scene. Given the area’s below-average vacancy rate, it’s no surprise many Park City real estate investors have enjoyed strong tenant demand and healthy returns on their investments.
Investing in a Multi-Family
While Park City is often where property investors look - surrounding towns and counties also have viable options for the seasoned investor or someone looking for an owner-occupied property.
Investing in multi-family properties requires more than an understanding of an area’s demographic trends, however. Because of the complexity of these transactions, potential investors require a good deal of financial knowledge and education about financial issues, regulations, and city ordinances to ensure a smooth sale or purchase.
With several Realtors who specialize in handling investment properties, Coldwell Banker Paula Higman Real Estate ranks as the Park City's area’s top agency for both multi-family listings and sales by market share. Paula Higman, a Global Luxury Agent with Coldwell Banker Paula Higman Real Estate, has been recognized as the #1 Agent in multi-family sales in the state of Utah.
Since investment goals lie at the heart of most multi-family purchases, taking a rigorous financial look at any potential purchase should be the first step in analyzing a deal. Coldwell Banker Paula Higman Real Estate’s agents assist clients by applying two important financial tools used to evaluate a potential transaction: the "cap rate" and the "gross rent multiplier.”
A cap rate is an expression of annual net operating income before taxes divided by the purchase price or market value. The gross rent multiplier divides the gross operating income or total rent income by the purchase price or present market value. Used together, these financial tools can assist buyers in screening properties for value and long-term returns.
With multi-family homes – whether it’s a duplex, multi-unit building, or apartment house – transactions also need to be evaluated on several points beyond their underlying financial strengths. A building’s tenants, for example, should be considered for their rent history and length of residence. The timing and communication of rent increases, while necessary overtime to compensate owners for repairs and other costs, are regulated by the state of Utah, and thus need to be considered for their impact on an investment’s profitability.
Particularly in the city of Park City, investors must also keep on top of minimum housing codes. With state and city requirements frequently changing, the agents at Coldwell Banker Paula Higman Real Estate make it a priority to stay informed. Otherwise, what appears to be a sound investment could be undermined by unplanned renovations or fines related to code violations.
Regardless of your investment property goals, Coldwell Banker Paula Higman Real Estate can help your transactions flow smoothly, from providing an experienced agent trained in the nuances of multi-family properties to helping clients create a financially sound analysis.
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Regardless of price point, our team is united in their efforts to support the client, support each other, and get the job done in the best way possible. Paula Higman Real Estate is a unique team of talented and diverse individuals with a passion for success and client satisfaction.
Contact Paula Higman Real Estate today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.
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