Buying a property in Las Vegas
- Thread starter ottawaman
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People go to Vegas to stay in the hotels. Not to rent a condo. You can do better.
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Too funny.
When people think of buying income property in Las Vegas, I think of Don's slides with the hot dog cart (REIN April meeting?). The one hot dog cart has a crowd around it. The other has no one. Which one would you rather buy?
I think of Las Vegas as the latter : )
When people think of buying income property in Las Vegas, I think of Don's slides with the hot dog cart (REIN April meeting?). The one hot dog cart has a crowd around it. The other has no one. Which one would you rather buy?
I think of Las Vegas as the latter : )
- Joined
- Apr 11, 2008
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- 59
I purchased 2 properties earlier this year in Las Vegas after doing alot of research. After some repairs they were both rented in less than 3 days.
Guess what.....my HOA communities aren't ghost towns either contrary to what the media reports.
It depends on what you buy and where but I think there is good value right now if your intention is to hold for a while and enjoy the cash flow.
Guess what.....my HOA communities aren't ghost towns either contrary to what the media reports.
It depends on what you buy and where but I think there is good value right now if your intention is to hold for a while and enjoy the cash flow.
Thank you very much for your thoughts about Las Vegas properties.
As always I appreciate the insights the REIN community and its members have given to me.
I have one very important question to ask and that is whether to buy the property or to pass and look for other opportunities.
If you were in my shoes and if you have:
1. 50,000 USD cash on hand
2. a renter willing to stay for at least 2 years in this property
3. a renter who is prepared to pay 500-600 per month
4. a renter who you know will take care of the property (friend's parents)
5. a condo worth 40K-50K, 2 garage, 3 bedrooms, 1500sqft, built in 2007/2008
6. a condo located in a neutral area (not really sure cause i havent been there)
7. a condo having a monthly fee of 75 dollars.
Would you buy this Las Vegas property? Please any insights are very much welcome no matter how positive or negative they are.
As always I appreciate the insights the REIN community and its members have given to me.
I have one very important question to ask and that is whether to buy the property or to pass and look for other opportunities.
If you were in my shoes and if you have:
1. 50,000 USD cash on hand
2. a renter willing to stay for at least 2 years in this property
3. a renter who is prepared to pay 500-600 per month
4. a renter who you know will take care of the property (friend's parents)
5. a condo worth 40K-50K, 2 garage, 3 bedrooms, 1500sqft, built in 2007/2008
6. a condo located in a neutral area (not really sure cause i havent been there)
7. a condo having a monthly fee of 75 dollars.
Would you buy this Las Vegas property? Please any insights are very much welcome no matter how positive or negative they are.
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The RED flag for me here is the $75 a month condo fee. This is very low.
How many other units are for sale in the same complex?
How many units are Bank Sales?
What do the financials look like for the condo corp?
Are you ready for a cash call or several?
What happens if your tenants want to move out within 6 months, who will manage the property?
I would defiantly visit the area 2 different times. Get a feel for who lives there and if people are moving in or out. Does it show strong economic fundamentals?
How many other units are for sale in the same complex?
How many units are Bank Sales?
What do the financials look like for the condo corp?
Are you ready for a cash call or several?
What happens if your tenants want to move out within 6 months, who will manage the property?
I would defiantly visit the area 2 different times. Get a feel for who lives there and if people are moving in or out. Does it show strong economic fundamentals?
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I've only invested in Phoenx, AZ and it has been very profitable. Gross margins of over 20% are normal now.
I don't have direct experience investing in Las Vegas, but I would imagine that it would be similarly profitable if you found the right properties.
I wouldn't pay much attention to individuals that have no RE investments in the U.S., they usually don't know what they're talking about.
You can read about my experiences on this thread:
http://myreinspace.com/public_forums1/f/62/p/17378/107437.aspx?PageIndex=1
Good luck and best regards!
I don't have direct experience investing in Las Vegas, but I would imagine that it would be similarly profitable if you found the right properties.
I wouldn't pay much attention to individuals that have no RE investments in the U.S., they usually don't know what they're talking about.
You can read about my experiences on this thread:
http://myreinspace.com/public_forums1/f/62/p/17378/107437.aspx?PageIndex=1
Good luck and best regards!
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- Oct 27, 2009
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- 1,210
[quote user=ottawaman]
1. 50,000 USD cash on hand
2. a renter willing to stay for at least 2 years in this property
3. a renter who is prepared to pay 500-600 per month
4. a renter who you know will take care of the property (friend's parents)
5. a condo worth 40K-50K, 2 garage, 3 bedrooms, 1500sqft, built in 2007/2008
6. a condo located in a neutral area (not really sure cause i havent been there)
7. a condo having a monthly fee of 75 dollars.
I never had luck with buying an investment property with the tenant in hand. In all cases I've had to remove them. It's not a big deal, but it's not as big a benefit (for me) as others may believe.
In addition, I like areas with low property and violent crime. I don't know if this is the case here. You will have to do your own research on that.
In general the condos I own in Phoenix, AZ have condo fees of $175 a month. $75 seems low. Expect this to increase.
A $40K-$50K property that generates $500-$600 a month in rent is normal. You're talking about 12% to 18% gross margins here. This is a typical deal, not an unusual one.
Best regards.
1. 50,000 USD cash on hand
2. a renter willing to stay for at least 2 years in this property
3. a renter who is prepared to pay 500-600 per month
4. a renter who you know will take care of the property (friend's parents)
5. a condo worth 40K-50K, 2 garage, 3 bedrooms, 1500sqft, built in 2007/2008
6. a condo located in a neutral area (not really sure cause i havent been there)
7. a condo having a monthly fee of 75 dollars.
I never had luck with buying an investment property with the tenant in hand. In all cases I've had to remove them. It's not a big deal, but it's not as big a benefit (for me) as others may believe.
In addition, I like areas with low property and violent crime. I don't know if this is the case here. You will have to do your own research on that.
In general the condos I own in Phoenix, AZ have condo fees of $175 a month. $75 seems low. Expect this to increase.
A $40K-$50K property that generates $500-$600 a month in rent is normal. You're talking about 12% to 18% gross margins here. This is a typical deal, not an unusual one.
Best regards.
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- Oct 27, 2009
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- 1,210
[quote user=MikeMilovick] Too funny.
When people think of buying income property in Las Vegas, I think of Don's slides with the hot dog cart (REIN April meeting?). The one hot dog cart has a crowd around it. The other has no one. Which one would you rather buy?
I think of Las Vegas as the latter : )
In my short investing career, I've only bought assets with nobody around. Speaking for myself, I hate the effect of crowds on price. No offense, but only novice investors relish the illusory comfort of a crowd. Your analogy means that Las Vegas real estate is potentially an amazing investment.
Best regards.
When people think of buying income property in Las Vegas, I think of Don's slides with the hot dog cart (REIN April meeting?). The one hot dog cart has a crowd around it. The other has no one. Which one would you rather buy?
I think of Las Vegas as the latter : )
In my short investing career, I've only bought assets with nobody around. Speaking for myself, I hate the effect of crowds on price. No offense, but only novice investors relish the illusory comfort of a crowd. Your analogy means that Las Vegas real estate is potentially an amazing investment.
Best regards.
- Joined
- Oct 7, 2009
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- 83
Don't you have to pay cash in the US? Doesn't that defeat the whole purpose of investing in RE.... where is the Leverage?
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- Jan 29, 2008
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[quote user=rcprog]Doesn't that defeat the whole purpose of investing in RE.... where is the Leverage?
There is more than one type of leverage. Financial leverage is defined by the amount of money you are able to borrow against an asset. Operating leverage defines how much profit you will make with a given change in revenue.
http://en.wikipedia.org/wiki/Operating_leverage
US real estate has the potential to take advantage of operating leverage, as the economy there recovers.
Regards,
Michael
There is more than one type of leverage. Financial leverage is defined by the amount of money you are able to borrow against an asset. Operating leverage defines how much profit you will make with a given change in revenue.
http://en.wikipedia.org/wiki/Operating_leverage
US real estate has the potential to take advantage of operating leverage, as the economy there recovers.
Regards,
Michael
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- 4,733
Las vegas and other area's are starting to look interesting
I'm wanting to talk with any investors in USA who are willing to provide their perspective
Give me an email or call if of interest
I'm wanting to talk with any investors in USA who are willing to provide their perspective
Give me an email or call if of interest
- Joined
- Mar 15, 2008
- Messages
- 510
For sure it is starting to look interesting. I have never heard of a real estate market exhibit a "double dip."
http://business.financialpost.com/2011/05/31/u-s-housing-double-dip/
Maybe, this will be the first time we will see a "triple dip" when the rest of the foresclosures hit between now and 2012.
http://business.financialpost.com/2011/05/31/u-s-housing-double-dip/
Maybe, this will be the first time we will see a "triple dip" when the rest of the foresclosures hit between now and 2012.
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- Oct 27, 2009
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[quote user=MikeMilovick] For sure it is starting to look interesting. I have never heard of a real estate market exhibit a "double dip."
http://business.financialpost.com/2011/05/31/u-s-housing-double-dip/
Maybe, this will be the first time we will see a "triple dip" when the rest of the foresclosures hit between now and 2012.
I love dips! I love double dips even more. I would probably go nuts on a triple! The amount of fear is good on a single dip, but it's exponentially better on a double and even more so on a triple.
As an individual I feel bad for the Americans. However, as an investor I hope (and pray) that you are right. I would love to pay less than what I am paying now (eg. $50 p sq ft).
Paying the equivalent for a Honda Civic for an 830 sq ft 2 bed 2 bath condo that rents for $700 a month would be a (more) profitable dream for me. That would be absoultely crazy amazing!
Dealing with Selling agents in the U.S. has been a very easy negotiation. It isn't "what price works for you?" it is more like "take it or leave it". Negotiation is easy when supply utterly outstrips demand.
"Almost 4 million homes have been lost to foreclosures in the past five years, turning many former owner-occupied homes into rentals. The shift to rental housing is potentially long-lasting and portends changes for neighborhood stability and how people build wealth, economists say."
"Twenty-five cities ` including Baltimore, Minneapolis, Salt Lake City and
Sacramento ` swung from having more than half homeowners in 2000 to majorities
of renters in 2010. In one ` Reading, Pa. ` 57.6% of occupied homes were rentals
in 2010, up from 49% in 2000."
http://www.usatoday.com/money/economy/housing/2011-05-30-renters-owners-census_n.htm
I can confirm the article that it is very easy to find quality tenants to pay market value rent (no rent control in Arizona).
Best regards.
http://business.financialpost.com/2011/05/31/u-s-housing-double-dip/
Maybe, this will be the first time we will see a "triple dip" when the rest of the foresclosures hit between now and 2012.
I love dips! I love double dips even more. I would probably go nuts on a triple! The amount of fear is good on a single dip, but it's exponentially better on a double and even more so on a triple.
As an individual I feel bad for the Americans. However, as an investor I hope (and pray) that you are right. I would love to pay less than what I am paying now (eg. $50 p sq ft).
Paying the equivalent for a Honda Civic for an 830 sq ft 2 bed 2 bath condo that rents for $700 a month would be a (more) profitable dream for me. That would be absoultely crazy amazing!
Dealing with Selling agents in the U.S. has been a very easy negotiation. It isn't "what price works for you?" it is more like "take it or leave it". Negotiation is easy when supply utterly outstrips demand.
"Almost 4 million homes have been lost to foreclosures in the past five years, turning many former owner-occupied homes into rentals. The shift to rental housing is potentially long-lasting and portends changes for neighborhood stability and how people build wealth, economists say."
"Twenty-five cities ` including Baltimore, Minneapolis, Salt Lake City and
Sacramento ` swung from having more than half homeowners in 2000 to majorities
of renters in 2010. In one ` Reading, Pa. ` 57.6% of occupied homes were rentals
in 2010, up from 49% in 2000."
http://www.usatoday.com/money/economy/housing/2011-05-30-renters-owners-census_n.htm
I can confirm the article that it is very easy to find quality tenants to pay market value rent (no rent control in Arizona).
Best regards.