Are you a real estate investor looking to get busy in the Beehive State? Home to over 3.3 million people, the state offers plenty of opportunities for investors who are looking to grab properties with great potential for passive income generation.
Though, like in every real estate market, success doesn't come on a silver platter in Utah. You must put effort into finding an ideal investment property.
If you're ready to begin your hunt, this article is your guide. Read on to learn some of the most important things to consider when scouting a property in Utah.
1. Commercial or Residential Real Estate?
Both commercial and residential buildings are excellent investment properties. The business model is the same: lease them out to tenants and start collecting rent payments.
Seasoned investors have both property types in their portfolio, but in this case, you need to pick one. Your choice will depend on your experience, access to capital, and even personal preferences.
If you have several residential rentals, for example, buying a Utah home or apartment is right up your alley. You already have enough experience with these types of properties. Getting it off the ground won't be a challenge.
Commercial real estate is typically more capital-intensive than residential real estate. If you're a first-time investor, residential real estate is your best bet.
2. Location
There are several prime real estate investment markets in Utah. Salt Lake City is an investor's favorite, but there's Park City, St. George, Ogden, Logan, and Provo among others.
In which city would you like to invest your money? Bigger cities are more alluring, but property prices are much higher. Most importantly, you must do a rental analysis to establish the rental demand in a certain location.
You don't want to buy a property that will make filling vacancies a tall task. That's what will happen if your property's location has low rental demand.
It's crucial to consider ease of access, especially if you intend to self-manage the property. Buying a property that's hundreds of miles away from your residence when you're a DIY landlord will make it harder for you to efficiently manage it.
3. Property Management Services
Hiring a property management service to do your handiwork is a savvy decision, especially if you don't have the time or own multiple properties.
When scouting for an investment property in any of Utah's cities, consider whether you'll find an experienced local property management firm. If there aren't any providers worth the bill, it means you'll either self-manage the property or hire a firm in another location, which isn't ideal.
Find a Great Investment Property in UT
Finding the best investment property takes some work. You want a building with essential amenities, of course, but the greater focus needs to be on the location and availability of property management services.
If you don't know where to start, Utah Property Solutions is your ally. Our veteran-owned company offers real estate brokerage and property management services, serving several markets including Salt Lake City, Herriman, Sandy, and South Jordan.
When you're ready, let's have a chat about how we can help you prosper.
