I am from California and looking for my first real estate investment in multi family homes. I am currently trying to find multi family homes for investment in Las Vegas,NV and Phoenix,AZ. Can you folks suggest which of these cities would make a better investment if I am looking purely for good rental cash flow ?
I can't speak to the Vegas market, but if you're looking for decent MFRs in Phoenix, the entry point is probably going to be higher. You can get some here for under 200k, but they'll be older, in need of major upgrades, and in very rough neighborhoods. Basically anything of value will be closer to 300k. Not sure what your metrics are, but be prepared to spend closer to or above the 300k barrier to get something nice out here as the stock of MFRs are very low here.
I think Phoenix.
Stay away from Las Vegas small multi family!! All of them are in rough D class neighborhoods with low rents and you know the type of tenants that come along with that.
Thanks everyone, appreciate all the response !
I'll echo what @Spencer Karr says about the small multi-family in Las Vegas. There has been no new small mult-family built in Las Vegas since the 1980's. Most of them are C- to D- class properties in really rough neighborhoods. Maybe you'll get lucky and buy in a gentrifying neighborhood but you'd better have some experience dealing with the types of tenants that come with that class of property.
The large multi-family market in Vegas is booming but you'll be looking at 150+ unit properties and the competition is fierce!