We all know that purchasing a property investment is a calculated step for every investor. But once you do it right, this lucrative investment may lead you to many fruitful real estate market opportunities.
You can do this by searching for places that have rising home market values. This is a great way to start your rental property investment because the sudden hike in property prices pushes demand for rental homes. Its also great if the area is accessible to various infrastructure, facilities, business hubs, and educational institutions.
Salt Lake City, known for its stunning natural landscapes and thriving economy, is a perfect example of a market like this. Due to its diversity and progressive communities, the city has emerged as a hidden gem in the world of real estate investment.
Choosing a Salt Lake City investment property welcomes you to a diverse range of housing options that can suit different preferences and budgets. This includes multifamily properties in central business districts, single-family houses in the city, and even charming starter houses close to popular parks and other recreational amenities.
With these various options, the city keeps up its image as a place where you can invest in a wide range of properties while seeing your portfolio grow significantly.
But before you get too excited about purchasing your first Salt Lake City investment property, you need to get some ideas first on how to venture into this kind of investment.
Here are the things that you have to consider and look for before diving into the world of real estate investment.
1. Research and Gather Enough Information About Salt Lake City
Before you buy your first Salt Lake City investment property, you must figure out first the city’s various markets. As an investor, you have to keep in mind that most tenants love to rent houses in areas that could offer them lots of job and lifestyle opportunities.
Fortunately, Salt Lake City is becoming more and more popular these days for real estate inventors like you because of the new businesses and large corporations flocking into the area. Currently, it is home to many healthcare giants, top banking firms, and high-tech companies, resulting in its achievement of a consistently low unemployment rate.
There is also a rise in Salt Lake City’s population as many people are moving to the area due to the various job opportunities and good quality of life it offers. This has brought a sudden spike in housing demand, making the investment market more active compared to other nearby cities.
2. Explore Salt Lake City’s Rental Market
Before buying a Salt Lake City investment property, you have to understand first its rental market and estimate how much money you can make from it. This is important especially if you want to make your investment last. You need to study the rental housing demands in the area and make sure that it will keep increasing in the future.
Currently, there are not enough rental homes in Salt Lake City making it a highly sought-after area for real estate investors. This also means that Salt Lake City property investment has a promising future due to the high demands of rental properties and its increasing property value.
3. Choosing the Best Location for Your Investment
The location of your rental property will always be one of the most important factors that your tenants will consider. This can make or break your chances of making money in your Salt Lake City investment property. It will be crucial for you to check and compare all the best available locations in the city before finalizing your decision on which property to buy.
Salt Lake City is big enough to offer vibrant neighborhoods and quiet suburbs. Just make sure to consider choosing the properties located in Salt Lake City’s best areas to easily get long-term tenants.
How you can find the best location for your Salt Lake City investment property? Some of the qualities that you have to factor in are accessibility and movability. Is the property close to local amenities, the central business district, and educational institutions? Are there any nearby hospitals, clinics, and tourist attractions in the area?
If most of these facilities and infrastructures are in the location you are eyeing, then it is the best location to find your rental property investment.
4. Address Factors Relating to Rental Laws and Regulations
Each state has its own landlord-tenant laws, property upkeep standards, and eviction process. As an investor, it is crucial that you familiarize yourself with these regulations. This will greatly help you in building your Salt Lake City investment property and keep your business compliant and secure.
5. Know the Local Laws
Apart from the state and federal law that you have to know, Salt Lake City also has its laws regarding rental property business such as the Common Zoning Violations and the SLC Landlord/Tenant Program.
You also have to consider the state tax implications on your Salt Lake City investment property by knowing Utah's property tax rates, the Utah Historic Preservation Tax Credit, the Utah New Home Construction Tax Credit, Opportunity Zones, and Utah State Income Tax.
6. Choose Which Property Type to Invest In
Salt Lake City has a wide range of property investments that can cater to the needs of your future tenants.
Single-family homes, condos, and townhouses in Salt Lake City are popular with young professionals and college students who live in urban areas. As a first-time investor, these could be great choices if you want rental homes that don't need a lot of upkeep.
Meanwhile, if you are adventurous enough and want more value for your money, you can also choose from various multi-family properties that Salt Lake City has to offer. You can choose from duplexes, triplexes, and small apartment buildings that bring great rental income.
7. Check the Property’s Condition
Now that you have already chosen the location and type of your Salt Lake City investment property, it’s time for you to check its current status.
To get the most for your money, you must make sure that the property you buy is in perfect condition. You want to gain as much rental income as possible while spending less on repairs and maintenance. Give it a full inspection to have assurance that everything is okay before buying it.
Some of the most important things that you have to check during the inspection are the electrical, plumbing, and HVAC systems. This is to ensure that any necessary repairs would be reasonable.
Hire A Property Manager You Can Trust!
Being a first-time investor in a thriving and developing area like Salt Lake City could be challenging. There are a lot of things that you need to consider when purchasing your first Salt Lake City investment property.
At times like this, you can always ask for help from professionals in building your first rental property business.
Here at Tier One Real Estate LLC, we offer Brokerage Services for both new and seasonal investors who would like to lessen their burden in acquiring new property investment ventures.
Currently, we have over 500 listings in Salt Lake City that you can choose from! Apart from this, we also offer property management services that will surely help your first rental property business.
Book a consultation with us and be our business partner now!
