I am planning on purchasing 2 duplexes as an investment properties in Las Vegas (most likely North Las Vegas). I am looking at homes that are in the ballpark of $120,000 to $150,000 with gross rents averaging $1000 (roughly $500 per unit) monthly.
I've purchased a single family property before but that was in Los Angeles and it was rented to family so this will be my first 2 investment properties. Do you guys have any tips of what I should look for or look out for? And also is my budget and how much rent is within reason as far as an investment goes?
Thanks in advance.
If you search for the BP post in the past, most comments on multi-family in Las Vegas are “no no”, because they are in class C-/D area.
Tenants in multi-family is a challenging issue.
Sounds like only SFR/townhouse/condo are good in Vegas.
Units that cheap that rent for $500 a side are in the ghetto's ghetto. I'd be very careful about what you buy in D Class neighborhoods. The tenants you will attract there can be quite terrible and you'll experience high vacancy and damage to the unit.
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Back in 2010-2013, could invest at low and great returns anywhere in Las Vegas. Now, tougher to find 1% rule. North Las Vegas is rougher D neighborhood, and the city has more regulations like city permit, business license, and pass fire department inspection. Also, many multi-units are older and have deferred maintenance.
I have 4plexs in Las Vegas, east and near strip. The near strip is better performing.
All said, read below link, as I believe Las Vegas still good investment.
Thanks for the responses.
This is a newbie question but what tool(s) do you guys use to determine the A/B/C/D classification for a home or neighborhood? (ie. is there a conversion tool from the score that Neighborhood Scout gives to these alphabetical ratings; and is the home classification for the most part just eye balled?)
If you are familiar with Las Vegas, especially if you live there, then you can make a good estimation of the neighborhood. I don't think there is an official grading system.
For example, all can agree that Summerlin is grade A, and North Las Vegas is grade D. Then you can fill in the rest, with comparisons.
Since you indicate that you live in Las Vegas on your profile, An easy way is to drive around the area that you are interested in buying properties, and see if you feel comfortable at the surroundings.
If you feel the area looks scary to you, find somewhere else.
If you feel the area looks ok, buy one property and try it.
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