Park City, Utah Condo Rental Success?

Question

Ladies and Gents,

I would like to purchase some condos in the Park City area to rent out most of the year and occasionally stay in with my family for a week period once a year. I would like some of my exit strategy homes to be in the mountains
	around a ski resort. Has anyone had success with this model and been able to grow as well as get a decent ROI? I have seen people buy beach condos and have hard time making money after HOA fees, management fees etc.Are there any additional pitfalls that I should be aware of in this kind of approach?I am a buy and hold cash flow investor currently with four properties in another location in the south east. Any help/advice would be appreciated.

V/r,

Rob

Steele Dewald · Answer

@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

Rob Young · Answer

Thanks for all the input.Why do the property managers take such a healthy sum of the money?40-50% seems like a whole lot of money for
	someone who is managing the property only and isn’t taking any risk.Do you guys recommend a certain property
	manager in the area?My plan was not to
	take my vacation at the peak of the market.That way I could get the most return on investment as possible and head
	their when it was still nice but not as profitable. From these replies, it
	sounds like I may shift my thought process for this area. With the house being
	vacant, has anyone had to deal with issues like theft or maintenance? This
	property just needs to have some positive cash flow and provide me a vacation
	home at first.With the lake relatively
	close by; is the area not desirable for a summer vacation as well? Thanks again
	for the info.

Rob

Matthew Yrungaray · Answer

Interesting topic, How to other resort towns handle vacancy? Colorado ski towns? Tahoe? Vermont?

I have friends that are selling in Bear Lake, UT (a lake town) and during the summer months, its full but the winter months it is vacant except for the holiday weekends.  Between HOA and property management, margins are slim.

Evan Hyde · Answer

Hi Rob,

I live in PC and have looked at some condos and spoken with some property manager friends about these kinds of deals. There are, apparently, some properties where you can make this work. I didn't find them. My problem was that in my price range the units were only grossing $6k/year and the HOA was something like $350 month.

Higher end properties command a boatload of rent during the winter and as long as you rent it during peak periods (don't bring your family during xmas), you could possibly make enough during the winter to make a return. But you won't find a month to month renter in the summer and it will sit empty. Property managers here take 40-50% of gross rent.

I'm curious to hear about anything you find that looks enticing. I'd be happy to ask some property managers about certain properties you may be interested in.

Evan

David C. · Answer

I looked into a beach condotel, apparently getting loans is hard.

Cash flow wasn't there.