my first property , 4 plex, las vegas

19 Replies

My first 4 plex "Las vegas"

First let me start off my introducing my self and letting everybody know this will be my first property ever, an investment property at that. my name is maurice. Im 26 years old and currently reside in the bay area (born and raised) were rent is expensive as hell and the price of a single family home are over 1 million dollars ( were talking 3 bedroom 2 bathroom homes). I  am currently employed in the medical field. I make good money at my job, i have no kids at the moment, and have goals of one day becoming financially independent. I do not want to live on w2 income, i want to live/ thrive on passive income, cash flow, etc. which explains the reason why im interested in investing in real estate, more so multi family/ commercial real estate before my 30's.

I have always been a risk taker in life, very ambitious, strong minded individual. Some might see that as a bad thing others .might see it as a good thing. As long as i can remember i have always told my self i would never work for a boss for the rest of my life, and that one day i would become my own boss. i grew up single mother ,  no father figure, and low income. so the "struggle" was and still is a constant reminder of how important making it to the top really is to me. 


Now that you have a brief background about my self, let me jump into the fun stuff:

 Back in July of 2018 . A family friend introduced me to one of his good friends who is a investor. come to find out not only is he an investor, he is also a licensed real estate broker from california who moved out to las vegas several years back . I was able to exchange contacts with him, and im sure we all knows what happens next. well if not, i was convinced to invest into the las vegas market. Multi family vs single family was a choice i had to make, and if las vegas would even be a market i would consider. At the end of the day im all about making money. investing in MFH gave me more cash flow compared to SFH, so i decided to focus my interest on just that. Next i had to do some research on the market . I found out that LV not only has property for much cheaper then CA ( go figure huh) Lv has a lot more tax incentives, and Nevada is a land lord friendly state.These are all green lights in my eyes. let me not forget about all the new developments going on present time. my price 


is now a good time to invest? what should i worry about? what areas to avoid? what areas to buy in? any news i can use? will the rates becoming higher effect the market? my price range is 320-380k. 


I will update you guys with my progress, currently I have a agent who i am working with. I have a couple of 4 plex options on the table . and a offer currently pending. 


regardes,


-Maurice 

I’m an investor in Las Vegas for 8 years.  

Las Vegas still have a lot of opportunities compare to many other west coast cities.  

I own SFR, townhouse, and condo; but would not touch D-class 4-plex in Las Vegas...

If you don't want headaches, don't buy 4-plex in Las Vegas, focus on SFR, townhouse, condo would be much easier.

@Ran L. thank you for your reply... is the zip code “89018”  consider d class? How do you fill about that area “ west lake mead and rainbow area to be exact. I will also have property management in place so the “ headache” will be on them. SfH homes at the moment has a lot of invetory.. on the other hand I noticed MFH have very low inventory. Seems like everyone is trying to close on one befor? I can be wrong that’s just how I’m looking at it? 

4plexes here are mostly old buildings in bad shape, with lots of deferred maintenance. If you want to go that route, I would suggest looking for a distressed property that needs work, toss the squatters, fix it, then rent it. Otherwise you may be more likely to pay too much for a lot of repair problems. 

This post has been removed.

This popular situation helps keep me in business, so I love it..  BUT, just because property is cheaper here than in CA, doesnt make it a good investment..  

There is NO worthwhile cash flow here compared to almost any other place in the country, so everyone is gambling strictly on appreciation?    Yikes..   

@Maurice Smith

89018 is C/D class..  Kind've block by block in that area..  Single family homes are at about a 2 1/2 month supply at the moment which is still very low inventory..  Twice what it was a year ago, but still a sellers market..  Not sure about 4-plex inventory, as a vast majority of them are a disaster in every sense..

This post has been removed.

@Bjorik Mutize thank you sir I appreciate it. In my personal opinion , if your looking to invest in Vegas I would invest in rental property, suppose to you buying a home to live in for a few years banking on your appreciation  to go up. I think Vegas is on the rise, they have the lowest unemployment rate compared to other states ( which means a lot more people are employed rather then unemployed). These is a lot of new developments in Las Vegas on the way (raiders stadium and a couple new resorts just to name the main ones). There is even talk about bringing a Major League Baseball team to the city. which will open up even more jobs for both construction, seasonal, and retail, and hospitality. A lot of companies are starting to move to Vegas because of the tax instives ( Amazon for example). Once big companies like this make these kind of moves it’s only a matter of time befor others follow, or at least I would think so. 

The state of Nevada it self  is a land lord friendly state which is a good thing for landlords obviously. It only takes up to 28 days to evict Simone’s from  your property. In California it can take up to 6-8 months.

Las Vegas has city plans as far out as 2045  so the city is definitely being proactive about things. Unfortunately There is going correction comeing soon to the market, and rates are getting higher as we speak. This  will bring more demand for people that need to A spot to rent. Wich is why owning a rental is ideal for me. People may have other opinions, but this is my opinion 

Originally posted by @Whitney Grogan-Purry :

Downtown, arts district area

 Downtown is having a makeover right now . The arts district is one  of the newest additions to get downtown cleand up, and attract the  millennial crowd.  Still a lot of riff raf though in my opinion. At the end of the day non of that really matters if the roi make sence 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here