1st Investment property. In Vegas!

Buying & Selling Real Estate
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1st Investment property. In Vegas!

Kealii Murray
Real Estate Agent 路 Wailuku, HI 路 Member since 2017 路 15 posts 路 4 votes

Hey guys!

So been going back and forth on this one for a while.

250k SFR single story 3bd 2ba. (Market Value 265k)

10% down + closing costs (32k)

Monthly P&I + insurance/property tax etc.

1400/month

Current tenant will stay on after purchase.

1315/month rent. 

After paying in additional 10% in Principle.

Mortgage will go down to 1290/month.

I realize there is a negative cash flow to start, but im thinking the 15k in equity off the bat and highly recommended tenants making rent payments in the 1st month is worth it (no waiting a month or more to find a good tenant.)

Main goal is buy and hold. Hopefully market continues to rise while paying down principle with tenants money.

I would appreciate any ideas or insight anyone has from seasoned investors. 

Mahalo!

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Michael Coxen
Real Estate Agent / Developer 路 Las Vegas, NV 路 Member since 2017 路 58 posts 路 15 votes
9y

A word of caution, you're now speculating and not investing. Nothing wrong with that, but just consider that if rents come down and/or prices come down, can you afford it? I'm as excited about the Raiders coming too, but a football team coming to town does not mean prices will explode. A team of 100 or so players (plus coaches, trainers, management) isn't really going to cause the tremendous impact that everyone is hoping for. Granted, there are other factors that are causing a population boom and supply is tight, so I believe prices will continue to rise steadily. However, as fellow Las Vegan Flavor Flav says, "don't believe the hype!"

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  • Account Closed
    Las Vegas, NV 路 Member since 2017 路 32 posts 路 18 votes
    9y

    Market is Sizzling.  Raiders are A Coming Baby! cant go wrong with a .5 rent to value ratio.

    0Reply
  • Kealii Murray
    OP
    Real Estate Agent 路 Wailuku, HI 路 Member since 2017 路 15 posts 路 4 votes
    9y

    That crossed the mind as well $$馃張$$

    0Reply
  • Robert AdamsBusiness Member
    Real Estate Broker 路 Henderson, NV 路 Member since 2009 路 1k+ posts 路 373 votes
    9y

    Buy it....Vegas is still going strong and no signs of slow down yet.

    [email protected]702-349-9175
    The Adams Team at Rothwell Gornt Companies4.970 Reviews
    WebsiteView Page
    0Reply
  • Kealii Murray
    OP
    Real Estate Agent 路 Wailuku, HI 路 Member since 2017 路 15 posts 路 4 votes
    9y
    Originally posted by @Robert Adams:

    Buy it....Vegas is still going strong and no signs of slow down yet.

    Yes it is! Thanks

    0Reply
  • Michael Coxen
    Real Estate Agent / Developer 路 Las Vegas, NV 路 Member since 2017 路 58 posts 路 15 votes
    9y

    A word of caution, you're now speculating and not investing. Nothing wrong with that, but just consider that if rents come down and/or prices come down, can you afford it? I'm as excited about the Raiders coming too, but a football team coming to town does not mean prices will explode. A team of 100 or so players (plus coaches, trainers, management) isn't really going to cause the tremendous impact that everyone is hoping for. Granted, there are other factors that are causing a population boom and supply is tight, so I believe prices will continue to rise steadily. However, as fellow Las Vegan Flavor Flav says, "don't believe the hype!"

    1Reply
  • Joseph M.
    Flipper/Rehabber 路 Los Angeles, CA 路 Member since 2009 路 1k+ posts 路 732 votes
    9y
    Michael Coxen , I agree . I see the same thing in L.A , people are saying the NFL stadium will transform Inglewood . I see these developments being good for an area but I'm not sure if they will actually be the game changer that many think .plenty of places in the country where there are stadiums but the surrounding area is run down or high crime . I also see investing with negative cash flow being risky . There are some lessons to be learned from looking at what happened during the crash in Vegas . Same in L.A too but it seems like Vegas crashed even harder and it's a lot different market since there is still land available to build .
    1Reply
  • Joseph M.
    Flipper/Rehabber 路 Los Angeles, CA 路 Member since 2009 路 1k+ posts 路 732 votes
    9y
    Kealii Murray this isn't really a deal if it's $15,000 under market/retail value . Why not find a real deal below market then you might actually be able to cash flow and if / when prices drop in the next downtown you are protected ? It's going to be harder to find a real deal but it'll pay off in the long run .
    0Reply
  • Kealii Murray
    OP
    Real Estate Agent 路 Wailuku, HI 路 Member since 2017 路 15 posts 路 4 votes
    9y

    thanks for the thoughts guys!

    0Reply
  • Michael Coxen
    Real Estate Agent / Developer 路 Las Vegas, NV 路 Member since 2017 路 58 posts 路 15 votes
    9y

    Right on, @Joseph M. - there is a lot of land available in LV, yet people are pricing it as if it's scarce. Tired of hearing people say "the Raiders are coming" as a reason to overprice their land. 

    1Reply
  • Jeremy Clemons
    Real Estate Investor 路 Carlsbad, CA 路 Member since 2013 路 8 posts 路 0 votes
    8y

    Anyone have a recommendation on the most reputable trust company in Vegas to assist with on a self-directed IRA for real estate?

    0Reply
  • Brian EastmanPro Member
    Self Directed IRA & 401k Advisor 路 Wenatchee, WA 路 Member since 2014 路 2k+ posts 路 2k+ votes
    8y

    @Jeremy Clemons

    I would strongly suggest you broaden your search. Self-directed IRA plans are a very specialty field with few providers nationwide. It is nice if you can work with someone local, but that is not always the best option.

    Rather than geography, i recommend you evaluate providers based on:

    Plan types offered as being suitable for your goals; custodial processing services, checkbook IRA LLC or checkbook Solo 401(k)

    Expertise, time in business, etc.

    Accessibility of support both during and following plan setup

    Fees

    Customer ratings/recommendations

    0Reply
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