My sister and I are looking at a few fourplexes in Las Vegas, NV to buy as rental investment properties. Does anyone know much about the Las Vegas market? We've done some research and looks like a few could be cashflow positive right away. Would love some opinions on this!
Hi there. I myself am looking for a multi-plex here in Las Vegas, and it would depend on what you consider as being able to cash flow. I have personally ran the numbers on well over 100 multi unit properties here in Las Vegas, and if you are going to be using FHA or Conventional Financing with 3.5% to 5% down, at their present asking prices not even one will cash flow. If you pay all cash anything will cash flow. Anything really in good shape in a decent area all cash buyers are buying those up quickly. If you buy in the higher crime areas you will still have to offer at least 75% of the offering price in order to cash flow. That is based on what I have personally seen the last couple months. Feel free to contact me back @shawnbarga and good luck
The Las Vegas multi's are one of the most competitive markets here in the valley. There are a few in the D class market's that has cap rates around 7% with the A-C markets being a bit lower. The issue with the D markets is the turn-over rate, it tends to be higher which affects the bottom line. In the lower markets a good management company can help offset this. Also, be ready to invest in rehab on the C-D markets. The multi's that are in good shape and producing income are being held by investors or pocket listed.
I'll echo what others have said. Very difficult to find deals that actually cash flow using leverage. Just posted this week about one fourplex I was looking at. $550 HOA fees basically made it not even worthwhile. Even if the seller was willing to take 25% off the asking price, it was still getting less than $100 a door with 20% down.
Though, it is possible to find deals. You're just not going to find any/many on the MLS. I think LV has 3 months worth of inventory listed. Normal is about 6 months so the market is really tight.
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