Buy first property and rent out

12 Replies

I live in Monterey Park CA, With house prices in CA don’t see doing my first home purchase here, so I’ve been looking at property’s in Las Vegas prices are very tempting but not sure. Look for advice where to start and if Vegas would be a good place to start

Hi Ernie,

Just from reading other CA investors decisions, a lot of them go for 1-4 unit rentals in the midwest states. Ones that come to mind are Milwaukee WI, Indianapolis IN, Memphis TN, Atlanta GA, and Kansas City MO.

Wherever you can find deals with good ROI is worthwhile when the surrounding market demographics are trending in a positive direction.

Excited to see what action you take!

Purchasing for long-term rentals, Kansas City is one of the best markets in the nation. Great rents, lower real estate prices. It is an okay flip market, but there are better markets for flipping.

I'm not sure Vegas would be the best place to start, although I admittedly don't know much about the Las Vegas market. For buy and hold, cash flowing rentals, I think the Midwest and South are the strongest.

@Ernie Castaneda Las Vegas wouldn't be my first choice (or 2nd or 3rd or....) unless I could turn back the hands of times to around 2012 before it began to recover. The price/rent ratio's just don't support good cash flow. I also don't like a market that is heavily dependent on a single industry.I would take a close look at Indianapolis and Kansas City. Both of these markets cash flow well and have strong economic and demographic fundamentals. 

I'm personally not a fan of Vegas. For one, the prices there now have sky-rocketed and in most cases are higher than they were before the 2009 crash. But that aside, even when the prices were killer-awesome, I don't like the market fundamentals of Vegas enough to want to buy there. The primary industry there is entertainment, and what is the first industry to take a hit in a recession? That means the properties around it too. Also, entertainment makes for a lot of transient tenants, and those aren't primo for rental property success.

If you aren't set on Vegas, check this article out to maybe help you-

https://www.biggerpockets.com/renewsblog/out-of-st...

I'm down in LA/Venice and have always bought out-of-state. Happy to chat anytime if you want some help.

I agree with others who've posted about Las Vegas not being a great place to invest at this time, and that the midwest and southeast cities are going to be where you find your best options. What kind of REI are you looking to do - flips, buy rehab and rent, or something more passive - like buying turnkey?