BiggerPockets

Las Vegas! My cashflowing rental search....

Tuesday, October 06

You'd think if you put in 7 cash offers all between 10-30% above list price, you'd have several if not all in escrow, right? No, not in Las Vegas .... investors have flocked to the region and homes especially sub $50k are the ultimate elusive animal right now.  I spent last weekend looking at 16 homes all under $50k before putting in 7 offers.  Just got confirmation they all have died.  The Las Vegas market is close to 90% REO's.  The whole city appears to be resetting to the 1990's. Banks are listing low and creating bidding wars.  My Agent warned me it takes about 10 offers before getting one accepted.  Here's my list of what I offered on:

                List                    Offered                 Bed/Bath                 SF

• $32k                 $35k                  3/2                    1196
• $32k                 $38k                  4/2                    1598
• $27k                 $32k                  3/1                     958
• $35k                 $44k                  3/1                    1144
• $29k                 $33k                  4/2                    1720
• $40k                 $45k                  3/2                    1162
• $36k                 $42k                  3/2                    1390

These homes (as estimated by my agent/PM) would rent between $740 and $1000 a month.  Note: these are in marginal neighborhoods.  Not war zones but not somewhere I'd have a young daugher live alone.  I was planning on lease/option them so I'd tack on $200-$300 a month as a rent credit along with a $1500 option fee. Estimates to get them 'rent-ready' were from $500 to $6,000. I wasn't prepared to get involved in any major fixers being out of state. 

My search continues .....All was not lost on the trip.  I had a great time and secured some great contacts.  I also know exactly what I want so will continue my search from Oregon and go down for the inspection should I get that far.  I also had coffee with Richard Warren, a frequent contributor on this site.  Great to hear his perspective as he's a LV resident.  Once I land one, I'll submit the details including how the tenant search goes. 

Comments

1. 

   Nick J. Reply
   over 2 years ago

   You're having about as much luck in Vegas as I am in Joplin, MO

   I just thought of something, with all of your bad luck so far, I should point out that you should stay out of the casinos for now :)

2. 

   Ted Harris Reply
   over 2 years ago

   good pt Nick .... I put in another offer today on another property so hopefully, it's just a matter of time for the both of us!

3. 

   Nick J. Reply
   over 2 years ago

   I was trying to Sub2 Joplin but wasn't having enough luck so I started putting in cash offers and just like you, I was getting beat out when I was offering just above list price with no contingencies cash offers. It gets frustrating sometimes doesn't it.

4. 

   Ted Harris Reply
   over 2 years ago

   LV Agent said prior to April of this year, you could have your pick of sub $50k homes and get them under contract at or below list without much resistance but market has changed dramatically .... I guess people are more optimistic feeling like the economy has bottomed out.

5. 

   Jay Coalman Reply
   over 2 years ago

   Ted, I am new to investing and would like to meet some time and discuss the in's and outs of the business. Do you ever get down salem way?

6. 

   Ted Harris Reply
   over 2 years ago

   Hey Jay,
   I don't get down there much since I graduating from Willamette a few years back .... if you're in Portland anytime, let me know and we can meet!
   Ted

7. 

   Jon Klaus Reply
   over 2 years ago

   Ted, any progress in LV? I'm headed out there in a couple weeks. I plan to window shop, but that's about it.

8. 

   Ted Harris Reply
   over 2 years ago

   Yes, finally got one accepted .... after 11 offers. I'm leaving tomorrow to attend Monday's inspection.

9. 

   Jon Klaus Reply
   over 2 years ago

   Great! Looking forward to the details.

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