What kind of Investment purchase are you buying?

There are a couple of different categories your purchase will fit into when acquiring another property. There is a 2nd home purchase and an investment purchase. Let's look into both and determine what you're looking for.

A second home purchase is a property that is intended to be used as a secondary residence, such as a vacation home or a property that is used on a seasonal basis. These types of properties are typically used for personal use and enjoyment, rather than for investment purposes. Second home buyers may use their property for vacationing, renting out to others, or just as a place to get away from their primary residence.

An investment property, on the other hand, is a property that is purchased with the intent of generating income through renting or flipping the property. Investment properties can be residential properties, such as single-family homes or apartments, or commercial properties, such as office buildings or retail spaces. These properties are typically purchased with the goal of generating a positive cash flow, appreciation in value, or both.

Both types of purchase have different financing options, tax implications, and insurance requirements. Second home buyers may be able to qualify for a mortgage with a lower down payment and more flexible underwriting guidelines, but the interest on their mortgage is not tax-deductible in most cases. Investment property buyers may need to put down a larger down payment and may have to pay higher interest rates, but the interest on their mortgage may be tax-deductible.

It is important to note that the distinction between a second home and an investment property can also be influenced by the use and the frequency of use of the property. The lender may consider a property a second home if the borrower intends to use it as a second residence and if it is not likely to be rented out for a significant portion of the year. However, if the borrower plans to rent out the property for a significant portion of the year, the lender may consider it an investment property.

Investment Purchase

Purchasing an investment property is a way to generate income and build wealth through real estate. The process of buying an investment property can be similar to that of buying a primary residence, but there are some key differences and additional considerations.

  1. Research the market: It is important to research the real estate market in the area where you plan to buy the investment property. Look at factors such as rental demand, property values, and potential for appreciation.
  2. Get pre-approved for a mortgage: Before you start looking for a property, it's a good idea to get pre-approved for a mortgage. This will give you an idea of how much you can afford to spend on an investment property.
  3. Determine your budget: Determine your budget for the investment property, including the purchase price, closing costs, and ongoing expenses such as property management, repairs, and maintenance.
  4. Identify the type of property: Identify the type of property you want to invest in, such as a single-family home, a duplex, or a multi-unit apartment building.
  5. Find a good real estate agent: Having an experienced real estate agent will help you find the right property and guide you through the buying process.

  6. Closing the deal: After you've found the right property, you will need to negotiate the price and terms of the sale with the seller. Once an agreement has been reached, you will need to pay closing costs and finalize the purchase.
  7. Manage the property: After you've purchased the investment property, you will need to manage it by finding tenants, collecting rent, and handling repairs and maintenance.
  8. Assess the returns: Keep track of the income and expenses of the property, and evaluate the return on your investment.

Overall, buying an investment property can be a complex process, but with the right research, planning, and guidance, it can be a great way to generate income and build wealth through real estate.

Investment Purchase March 28, 2023
136
Listed
77
Avg. DOM
$278.34
Avg. $ / Sq.Ft.
$764,500
Med. List Price
178 Properties
Page 1 of 15
4
Beds
2
Baths
2,035
Sq.Ft.
1985
Year Built
1
Day on Site
1868392
MLS
Looking for a great investment opportunity? Don't miss out on this Duplex for sale! This corner lot property offers two identical units, each with two bedrooms, one bathroom, a separate laundry room,...
4
Beds
2
Baths
1,944
Sq.Ft.
1982
Year Built
1
Day on Site
1868393
MLS
Investors, don't miss out on this exceptional investment opportunity. Close to Juab High and Junior High Schools, as well as Nephi's newly opened community sports area, The Hive. This duplex property...
15
Beds
11
Baths
8,170
Sq.Ft.
1917
Year Built
1
Day on Site
1868395
MLS
Step back in time and immerse yourself in the rich history of "The Annex," an iconic 10-plex in Nephi, UT. This property is not just a building, but a time capsule that has preserved its heritage for...
$965,000
Neighborhood: La Veta Place
3
Beds
2
Baths
2,153
Sq.Ft.
1905
Year Built
1
Day on Site
1868401
MLS
Fully renovated 2 unit property zoned Residential Business allowing you to use the property as a commercial office or a residential duplex. The property appraised for 970k in December of 2022 right...
$1,100,000
Neighborhood: Plat B Slc Sur
4
Beds
4
Baths
2,343
Sq.Ft.
1908
Year Built
1
Day on Site
1868410
MLS
Welcome to this stunning renovated multifamily property located at 464 East and 600 South in Salt Lake City, Utah. This property is a true gem that boasts a prime location, exceptional income...
$950,000
Neighborhood: Southampton #2
6
Beds
4
Baths
2,640
Sq.Ft.
1978
Year Built
1
Day on Site
1868411
MLS
Positioned in between Little and Big Cottonwood Canyon, this renovated investment opportunity is a rare one to find. Currently fully occupied with month to month tenants, there are incredible value...
$1,800,000
Neighborhood: Kanab
13
Beds
7
Baths
8,000
Sq.Ft.
1958
Year Built
1
Day on Site
1868417
MLS
This is a fun and lucrative investment. 5 units are 2 bed/1 bath the 6th (basement) unit is 3 bed/2 bath with a separate entrance lock-off that can be used as a 7th unit (Mother-in-law). High demand...
$1,499,900
Neighborhood: Ten Acre Plat B
9
Beds
6
Baths
4,749
Sq.Ft.
1962
Year Built
1
Day on Site
1868433
MLS
Conditional Use Permit approved a development opportunity in Millcreek! RARE OPPORTUNITY. Over a 1 acre approved for the existing 4,749 SF home separated as a duplex: 9 beds 4 baths and to built 3...
2
Beds
2
Baths
1,450
Sq.Ft.
1964
Year Built
2
Days on Site
1868371
MLS
Basement washer and dryer are included with the sale. New windows both upstairs and downstairs. Furnace and AC serviced every year. MUST have an appointment to show the upstairs unit.
4
Beds
2
Baths
1,440
Sq.Ft.
1963
Year Built
4
Days on Site
1868232
MLS
Great side by side duplex. Within walking distance to the new Glendale recreational park at 17th south. There are some missing shingles; however, it is not leaking. Property information from County...
12
Beds
6
Baths
5,119
Sq.Ft.
1961
Year Built
5
Days on Site
1868156
MLS
Wonderful Tri Plex located in the heart of Logan, close to shopping and major transportation. Upstairs is rented as VRBO Basement and rear home are rented on yearly contracts. All new in 2022. Unit...
5
Beds
4
Baths
3,288
Sq.Ft.
1912
Year Built
6
Days on Site
1867947
MLS
Beautiful historic Fourplex in prime downtown Provo location. Walking distance to everything downtown Provo - the best restaurants& grocery, Covey Arts Center, Pioneer Park & Splashpad,farmers...

Second Home Purchase

A second home purchase refers to buying a property that is in addition to a person's primary residence. This type of purchase can be used as a vacation home, rental property, or for investment purposes. The process of buying a second home is similar to that of buying a primary residence, but there may be additional considerations such as rental income and property management. Additionally, financing for a second home may be different, as lenders may have stricter requirements and higher interest rates for this type of purchase.

Financing for a second home, also known as a vacation home or investment property, can be different from financing for a primary residence.

One option for financing a second home is to take out a second mortgage or home equity loan on the borrower's primary residence. This can be a good option for borrowers who have a lot of equity built up in their primary residence and want to keep their cash on hand.

Another option is to take out a conventional mortgage on the second home. This type of loan is similar to the mortgage on a primary residence, but lenders may have stricter requirements and higher interest rates for second home mortgages.

A third option is taking out a vacation home loan, which are specially designed for second homes. This type of loan usually requires a down payment of at least 20 percent and may have higher interest rates compared to primary residence mortgages.

It's worth noting that lenders may have different underwriting standards for second home mortgages, so it's important to shop around and compare rates and terms from multiple lenders before making a decision.

When purchasing a vacation home, there are several key considerations to keep in mind:

  1. Location: The location of the vacation home is important. Consider factors such as proximity to popular tourist destinations, local amenities and activities, and weather.
  2. Purpose of use: Decide how often you plan to use the vacation home and whether you want to rent it out to generate income.
  3. Financing: As mentioned earlier, financing options for a vacation home may be different from those for a primary residence. Research the different types of loans available and compare interest rates and terms.
  4. Maintenance and management: Vacation homes require regular maintenance and upkeep, and if you plan to rent it out, you will also need to consider property management.
  5. Tax implications: Owning a vacation home can have tax implications, such as property taxes and income tax if you rent it out. Be sure to consult a tax professional to understand the tax implications before making a purchase.
  6. Insurance: Make sure you have the right insurance to protect your vacation home, including coverage for natural disasters, liability, and property damage.
  7. Future plans: Consider your long-term plans, such as whether you plan to keep the vacation home for the long-term or sell it in the future.

Overall, owning a vacation home can be a great way to enjoy a vacation spot and generate rental income, but it's important to weigh the costs and benefits carefully before making a purchase.

Vacation Homes March 28, 2023
452
Listed
134
Avg. DOM
$774.36
Avg. $ / Sq.Ft.
$2,700,000
Med. List Price
452 Properties
Page 1 of 38
$1,395,000
Neighborhood: Timberlakes Area
5
Beds
3
Baths
4,112
Sq.Ft.
2018
Year Built
1
Day on Site
12300885
MLS
Truly a dream! This ''turn-key'' magnificent log cabin is tucked away among the soaring aspen trees on pristine mountain property in upper Timber Lakes. This immaculate, fully-furnished mountain...
Open 3/29
5825 Mountain Ranch Dr Park City,  UT 84098
$4,600,000
Neighborhood: Mountain Ranch Estates
5
Beds
2F13/421/2
Baths
5,901
Sq.Ft.
2004
Year Built
2
Days on Site
12300877
MLS
This recently reimagined Mountain Ranch residence embodies mountain elegance with a traditional twist. Thoughtfully remodeled in 2021-2022, the residence features a flowing, functional layout ideal...
$525,000
Neighborhood: Muirfield
2
Beds
1
Baths
1,160
Sq.Ft.
2001
Year Built
2
Days on Site
12300883
MLS
With schools nearby, this property is an ideal choice for families with children. You won't have to worry about long commutes or transportation logistics, and your kids can attend some of the best...
Open 3/29
7850 Sunrise Loop Park City,  UT 84098
$5,649,000
Neighborhood: Deer Crossing
5
Beds
2F23/411/2
Baths
5,614
Sq.Ft.
2018
Year Built
5
Days on Site
12300868
MLS
Long unobstructed views and smart, contemporary architecture define this wonderful, perfectly-located Promontory home. Positioned on the coveted Sunrise loop, the owners of this home will enjoy...
$11,500,000
Neighborhood: Evergreen
6
Beds
5F13/411/2
Baths
7,872
Sq.Ft.
1990
Year Built
5
Days on Site
12300869
MLS
Rarely do you find ski-in ski-out access this amazing! Sitting right on the slopes of Deer Valley Resort, nestled in the trees of Silver Lake Village sits your next Park City home. Boasting direct...
$1,375,000
Neighborhood: Scotch Fields
5
Beds
4
Baths
4,286
Sq.Ft.
2022
Year Built
5
Days on Site
12300627
MLS
Don't miss this chance to own a wonderfully curated home surrounded by mountains and adjacent to the spectacular trail system spanning 23,000 acres at Wasatch State Park. After exploring the trails...
Open 3/28
342 E 180 North Midway,  UT 84049
$1,650,000
Neighborhood: Indian Summer
6
Beds
3F13/411/2
Baths
4,906
Sq.Ft.
2023
Year Built
5
Days on Site
12300870
MLS
Walk to Midway's Main Street and Memorial Hill from this newly constructed three-level home with thoughtful luxury conveniences, hardwood floors, custom lighting, and tall ceilings. Arrive at the...
Open 4/1
310 Matterhorn Dr. Dr Park City,  UT 84098
$1,425,000
Neighborhood: Summit Park
5
Beds
3
Baths
3,288
Sq.Ft.
1999
Year Built
6
Days on Site
12300855
MLS
You will love this home located on the sunny side of Summit Park. This gorgeous property is all about stunning views, trailheads, back country skiing, and sitting by the fire or watching the sunset...
$1,595,900
Neighborhood: South Ridge
5
Beds
2F13/411/2
Baths
3,654
Sq.Ft.
1997
Year Built
6
Days on Site
12300860
MLS
OPEN HOUSE CANCELLED THIS WEDNESDAY 3/29/23 DUE TO WEATHER. MUST SEE! BRAND NEW A3/4 BATHROOM ADDED TO BASEMENT! This Stunning South-Facing Southridge Home has everything you need and more! Look at...
$1,675,000
Neighborhood: High Star Ranch
3
Beds
3
Baths
2,050
Sq.Ft.
2021
Year Built
6
Days on Site
12300862
MLS
Bordering open space and miles of trails, this single level living floor plan in the High Star Ranch community was built with gorgeous high end finishings for true luxury living in the Kamas Valley....
$1,199,000
Neighborhood: Midway Village
3
Beds
3
Baths
2,362
Sq.Ft.
2016
Year Built
6
Days on Site
12300863
MLS
BEAUTIFUL CUSTOM HOME IN SOUGHT AFTER ''MIDWAY FARMS'' SUBDV. THIS IS A ''EAT OFF THE FLOOR'' IMMACUATE HOME READY TO MOVE IN. YOU WILL BE AMAZED AT THE CUSTOM DETAILS WITH IT'S 9' CEILINGS AND WELL...
$1,921,000
Neighborhood: High Star Ranch
4
Beds
2F23/411/2
Baths
2,498
Sq.Ft.
2018
Year Built
7
Days on Site
12300830
MLS
Welcome to High Star Ranch, an exclusive community nestled in the breathtaking surroundings of Kamas UT. Presenting a stunning 4-bed 4.5-bath single level home that backs to open space, providing...