How Much Down Payment Do I Need For A Rental

Now is a great time to begin owning a vacation rental in Park City Utah. The market for vacation rentals is high and demand is steady year-round. If you’re looking for a vacation home that you can use as an income property when you aren’t there or a property that is strictly a short-term rental, you’ll need to familiarize yourself with different financing expectations than you would with a primary residence.How Much Down Payment Do I Need For A Rental

Lenders will want to see that you are totally financially ready to take on this additional debt and will likely require more evidence of this than the lenders for your home. The more you know what to expect, the better prepared you will be to secure the right rental for the right price.

Down Payment

You should expect to make at least a 20% down payment. While there are some options to get a second mortgage to cover the down payment or put as little as 10% down, in general, you will find it quite difficult to purchase an income property for less than 20% down, especially if your credit score is any lower than 740.

More realistically, you will likely be asked to put down 20% unless you have stellar credit and minimal debt. Mortgage lenders will be looking for greater security on an investment property’s mortgage than they would on a primary residence, and you will not have the same down payment assistance programs available to you as you would when purchasing your home.

More: Common things to look out for before buying your dream home

Other Considerations

Keep in mind when you are planning for your down payment that other cash may be needed upfront when you buy your vacation rental. Closing costs, repairs, and renovations need to be taken into consideration when you calculate your costs and what you really can set aside for a down payment. A 20%-30% down payment will be ideal, in addition to your other upfront costs. If this isn’t feasible, but you are otherwise in a good position to buy a Park City rental, some sellers will be interested in owner financing. In this case, there may be more flexibility to offer a smaller down payment in exchange for a higher interest rate. If you and your real estate agent are able to negotiate a deal, you may find a way to purchase the rental you want without having a 20% down payment ready.

 For more information on rental investment properties in Park City contact us below or browse new listings today. 

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43 Properties
Page 1 of 4
Open 2/1
1406 W Meadow Loop Rd Park City,  UT 84098
$2,200,000
Neighborhood: Meadow Springs
3
Beds
2F23/4
Baths
2,460
Sq.Ft.
1988
Year Built
2
Days on Site
12300273
MLS
Beautiful home in Silver Springs offering 3 bedrooms and 4 baths plus large lower level den with adjoining office space. Extensive main floor remodel includes opening up the living space bringing in...
Open 2/1
1618 Redstone Ave Park City,  UT 84098
$850,000
Neighborhood: Fox Point At Redstone
3
Beds
2
Baths
1,261
Sq.Ft.
2003
Year Built
2
Days on Site
12300277
MLS
Great opportunity to own a coveted south facing top floor Fox Point condo. Perfect for an owner-occupant or investment! Nightly and Long-Term Rental approved (has never been in rental pool). Enjoy...
$599,950
Neighborhood: Brookside (Heber)
3
Beds
3F11/2
Baths
1,954
Sq.Ft.
2023
Year Built
2
Days on Site
12300278
MLS
Duplex building. Finished basement included! We have new lots available where construction will start in March 2023! These townhomes will have a small private landscaped yard to enjoy. (Fencing is...
$750,000
Neighborhood: Wheeler Park
5
Beds
3
Baths
2,974
Sq.Ft.
2014
Year Built
2
Days on Site
12300279
MLS
Beautiful 5 bedroom family home in the highly desired Wheeler Park community Only minutes away from Park City, Deer Creek and Jordanelle. This property is so close to everything outdoors: Skiing,...
Open 2/1
7065 Powderhorn Ct Park City,  UT 84098
$5,150,000
Neighborhood: Lookout Ridge
4
Beds
1F33/411/2
Baths
5,288
Sq.Ft.
2021
Year Built
2
Days on Site
12300280
MLS
Introducing 7065 Powderhorn! This is a 2021 New Construction home by Aecum Development in the sought after Neighborhood of Lookout Ridge in Promontory Club. The location provides stunning Wasatch...
Open 2/1
2417 W High Mountain Rd Park City,  UT 84098
$6,975,000
Neighborhood: Pendry Residences Park City
4
Beds
2F43/4
Baths
3,691
Sq.Ft.
2022
Year Built
2
Days on Site
12300283
MLS
This Signature Penthouse Residence is Pendry's most spacious and opulent residential accommodation, more than 1,000 sq.ft. larger than any other residence in the building! This slopeside getaway...
$1,550,000
Neighborhood: Shoreline
3
Beds
3F11/2
Baths
3,030
Sq.Ft.
2023
Year Built
4
Days on Site
12300269
MLS
All Pre sheetrock options included.Buyer can still select all the Finish options.Call and set up a time to come in or just stop by we would love to show you how great Shoreline is.All photos are of...
$969,000
Neighborhood: Heber City
5
Beds
3F11/2
Baths
3,656
Sq.Ft.
1998
Year Built
4
Days on Site
12300270
MLS
Beautifully landscaped open floor plan rambler with unobstructed views of the Heber Valley and surrounding mountains, including Mount Timpanogos! The property behind is designated open space and the...
$1,325,000
Neighborhood: Blackstone Flats
2
Beds
1F13/4
Baths
1,160
Sq.Ft.
2019
Year Built
5
Days on Site
12300248
MLS
This modern ground-level unit is perfect for a year-round residence or seasonal ski getaway. It offers an expansive living space with tall ceilings and large windows which allow for tons of natural...
$1,525,000
Neighborhood: Blackstone Flats
2
Beds
1F13/411/2
Baths
1,160
Sq.Ft.
2019
Year Built
5
Days on Site
12300249
MLS
This contemporary ski condo is located on the top-floor of Blackstone Flats. It is offered turnkey and features an open floor plan with spacious living area, high ceilings, expansive windows allowing...
$4,500,000
Neighborhood: Resort Center
4
Beds
4
Baths
2,713
Sq.Ft.
1985
Year Built
5
Days on Site
12300231
MLS
This is a unique opportunity to own the incredibly rare 4 bedroom ski in/out presidential suite at Park City Resort. The unit features amazing ski run views, two primary suites, 4 full bathrooms, 4...
$50,000,000
Neighborhood: Colony At White Pine Canyon
6
Beds
2F63/431/2
Baths
17,567
Sq.Ft.
2022
Year Built
5
Days on Site
12300255
MLS
Presenting ''Monitor's Rest'', winner of the distinguished Robb Report Best of the Best award for 'Best Amenities'. Nestled mountainside at the base of Monitor Bowl on Park City Mountain Resort, this...

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