Finding a permitted Airbnb for sale in Salt Lake City is harder than finding the property itself. This week I’m working with one: an off-market, fully permitted short-term rental duplex in Olympus Cove that made $130,000 in booking revenue last year. Here’s what it is, how the numbers work at today’s rates, and how to hear about deals like it first.
The property: two units, two permits, two hot tubs
This is an up/down duplex at the foot of Mount Olympus, and both units are operating as permitted short-term rentals today.
- Price: $1,600,000
- Layout: 2 bed / 3 bath top unit, 3 bed / 3 bath bottom unit
- Booking revenue last year: about $70,000 from the top unit and $60,000 from the bottom unit
- Reviews: 10/10, with ski season still to come
- Location: Olympus Cove, walking distance to restaurants and grocery stores
- Status: Off-market, not listed on the MLS or Zillow
The views are what guests book it for. Mount Olympus fills the skyline right from the front yard, and the two hot tubs are what guests love most, especially after a day in the canyons.
Why permitted short-term rentals in Utah are worth more
In a Utah short-term rental, the permit is often the most valuable part of the deal. Many cities along the Wasatch Front have tightened short-term rental rules or limited permits. A property with permits already in place and real booking history means you’re buying a business that’s already working, not a house you hope to turn into one.
Always confirm permit status and local rules with the city or county during due diligence. Rules can change, and a permit doesn’t always transfer automatically.
Does it pencil at 7%+ rates?
With 20% down ($320,000) at 7.28%, principal and interest on a $1.28M loan come to about $8,760 a month, or roughly $105,000 a year. That’s before taxes, insurance, cleaning and management. Against $130,000 in combined gross revenue, a conventional loan makes this tight as a pure investment.
Two strategies change the math:
- Live in one unit and rent the other. Owner-occupying one unit may open the door to owner-occupied financing with less down, while the other unit’s booking revenue covers a big share of the mortgage.
- Seller financing. The seller is open to carrying a note. By my math, at $1.6M this property breaks even at roughly a 4.5% interest rate. Seller financing anywhere near that skips today’s bank rates and makes it work as a pure investment.
The seller has already turned down a $1.1M offer, so a lowball won’t land. The opportunity is in the terms, not the price.
Wall Street underwriting for Utah investors
Before real estate, I spent 10 years on Wall Street. Now I bring that same discipline to Utah investors. I underwrite every property the way an institutional investor would, so you know exactly what you’re buying before you make an offer:
- Real rent or booking history, not projections
- Every cost in the numbers: taxes, insurance, HOA, cleaning and management
- Cash flow at today’s interest rate, not a refinance you’re hoping for
- Short-term rental permits and zoning, confirmed with the city or county
- A clear offer price and terms before you fall in love with the house
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