Hello All, this is my first post, there is so much information on this site that I don't know where to start. I don't have much experience at investing on Real Estate. 2 years ago decided to buy a duplex in Las Vegas that was already rented, after buying it the tenants stopped paying the rent, not even the first month! Had to evict both of them. Then the property ended up being a fixer upper had to buy new AC units, new roof, kitchen, bathrooms etc. finally got it ready and rented and decided to pay off the loan by refinancing my house, not sure if it was a smart move but at the time I just wanted to get a lower interest rate. Now it is paid off, but after reading some advice here it may not be the best move since now I don't have the tax benefits of the loan. Now I want to buy another duplex or maybe a fourplex in Las Vegas but I don't know if it is the right moment to invest now since housing market seams to be better for the seller than the buyer, I haven't been able to find any good deals, I have an agent that sends me MLS listings when they become available but everything appears to be overpriced or needs a lot of work. Are we in a market bubble? Is it a good time to invest on real estate or would it be better to wait?
Hey welcome to biggerpockets. I am also pretty new here and have been looking to buy a multi unit complex two to four units owner occupied using FHA or conventional home is possible loan. All of the ones I have seen off the MLS are way over priced so I have been putting in low offers that would make it possible for me to cash flow. I would suggest running the numbers and make offers based on what you can safely still be able to cash flow $100 to $200 a unit. These out of state owners are being led by greedy real estate agents and these multi units are just sitting idle on the market here, all over priced, run down and in the highest crime areas. I did see one 4 plex cone on the market for $150k, but it only lasted 3 minutes as the buying and selling agents already had the deal written up and it went into contract as soon as it went on the MLS. You gotta love insider information. Contact me if you would like to connect and go over what each of us is seeing on the markets here in Las Vegas.
Hi @Carlos L. and welcome to BP.
The Las Vegas market right now is very hot and it is very difficult to find a decent deal, especially with 2 to 4 unit dwellings. Most of these were built many years ago in neighborhoods which are now Class C/D areas, which tend to lead to bad tenants and many headaches.
As far as your question about the market bubble, there are many views - I personally think the market is ok, I expect it to have flat growth over the next few years to catch up with all the appreciation we've seen in the past couple years. The timing of your investment is more related to your goals and exit strategy. If you buy now, you may lose some value short term, but in the long run, you'll most likely be just fine. Additionally, the longer you wait, the more rent you don't collect. This is, of course, no reason to buy the first house you stumble across, as you still need to buy smart to survive in any market.
Thank you guys, you are absolutely right, properties are overpriced because there is a very high demand, most of them in dangerous neighborhoods and in poor condition. It is like finding a needle on a haystack. I agree with Christopher, in the long run it will be fine.
Also, I wanted to ask, if you have the option of buying all cash or financing what would be the best way to go? If you pay cash you save on interest, if it is financing you can take advantage of the leverage, how much would you prefer to give as down payment?
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