Second Homes, Multi-Family Properties, and Out-of-State Investing: What You Need to Know
When it comes to the real estate industry, buying and selling your primary residence is only a portion of the types of representation we provide our clients. As firm believers that real estate continues to be one of the most consistent and accessible vehicles for building wealth, we advise on more than just where to live but how to use real estate as an investment vehicle.
The “how” of investing looks different depending on your goals, stage of life, and local market conditions. Whether you’re looking to create more financial security, generate passive income, or expand your living options, there are multiple ways to invest in real estate that go beyond owning a primary residence.
Some of the varied transactions we represent are the purchase of second homes, particularly in Utah hotspots like Park City and St. George, the search for and strategic negotiation of multi-family properties, as well as referring our clients toward out-of-state investments if their focus is on taking advantage of lower list prices and cash flow potential.
In this guide, we’re breaking down three increasingly popular strategies: owning a second home, purchasing multi-family properties, and investing out of state, and what you need to know to get started.
Purchasing a second home
Big Picture: Second homes can support financial goals and personal lifestyle, especially if they’re located in high-demand destinations.
Many second-homeowners start with a personal vision, somewhere to spend weekends, host family, or plan for retirement, but the benefits can extend beyond convenience. A second property can serve as a vacation spot and a powerful asset. In areas with strong short-term rental demand, purchasing a second home can offset ownership costs and generate seasonal income.
However, the financial upsides come with responsibilities. Zoning regulations, HOA rules, and local short-term rental laws can limit how (or whether) you can rent the property. Maintenance, seasonal weather, and insurance also need to be factored in. That said, a second home doesn’t always need to function as a rental. For many of our clients, simply having a secondary residence closer to outdoor recreation, family, or retirement goals is reason enough.
Whether you’re considering Park City, Bear Lake, St. George, or another destination across the Intermountain West, we’re here to help you think through timing, usage, and long-term value.
For a deeper dive into the pros and cons of real estate investing, including second homes, check out our blog post: Real Estate Investing: The Good, Bad, and Ugly.
Buying multi-family properties
Big Picture: Buying a duplex, triplex, or fourplex allows you to build equity and generate income simultaneously, making it an ideal option for both first-time and experienced investors.
Multi-family homes offer unique advantages, from providing rental income right away to easier financing options than commercial investing and fewer barriers to entry than you might expect. For those just starting in real estate investing, it’s a model that can help offset your own living expenses by renting out the additional units you choose not to occupy. For others, it’s a strategic addition to a growing investment strategy.
The right multi-family opportunity comes down to the numbers and the neighborhood. With our clients, we work to identify areas with strong job markets, access to public transportation, and steady rental demand.
What makes multi-family investing appealing is its scalability. You can grow your rental portfolio quickly, and maintenance costs are often lower per unit compared to owning multiple single-family homes. That said, becoming a landlord also requires additional time, effort, and responsibility as you’ll need to manage tenants, maintenance, and compliance.
If you’re curious about how this type of purchase fits into your broader plan, we can offer insight on evaluating a property’s long-term performance and what it takes to manage it effectively, either on your own or with professional management support.
To learn more about building financial freedom through a real estate portfolio, including multi-family investments, read our blog: Creating Financial Freedom through a Real Estate Portfolio.
Planning for out-of-state investing
Big Picture: You don’t need to live where you invest. Out-of-state real estate investing can offer lower entry costs, higher yields, and long-term diversification.
Utah is a very strong housing market with consistent value appreciation and demand. However, it can be a high-cost market compared to other states with moderate home prices and high rent-to-value ratios. Considering real estate investing shouldn’t stop at your ZIP code. Many investors are looking to cities with lower purchase prices, stable growth, and healthy rental demand to begin or expand their portfolio.
Markets in the Midwest and South often present strong returns, especially for long-term buy-and-hold strategies. But investing from afar requires trust, strategy, and support. You’ll need a local real estate agent who knows the neighborhoods, a reliable property manager, and possibly a contractor or handyman to address issues as they arise.
We’ve spent years cultivating relationships with experienced agents across the country. If you’re exploring options in other states, we can connect you to trusted professionals who uphold the same standards we do. We can also walk you through the steps to evaluate a market, finance a property, and build your support team.
When you’re ready to begin
Real estate is personal, and there’s no one-size-fits-all approach to real estate investing. Whether you’re thinking about a second home, a new income stream, or your next big move, you don’t have to navigate it alone, and you shouldn’t. If you’re curious about how these strategies could work for you, reach out to your Blakemore agent. We’d be happy to help you think through the next step!
