Long Distance Rentals in Las Vegas?

Question

After purchasing my first buy and hold, cash flowing duplex a year ago in Tacoma WA, I have been looking in the Seattle/Tacoma area for several months and the properties are so expensive now, the cash flow just does not work. I am looking to use the BP techniques for Long Distance Real Estate, specificallylocated  in Las Vegas. I am looking for advice from Las Vegas local and knowledgeable BP members on what specific area to focus a search on. I am looking for a property (3 or 4 units) in a good area, lower crime that will attract better long term tenants (ultimately better cash flow). I am also interested in a building a network team, realtor, property management and reliable maintenance, handymen, etc. Any advice on areas and especially a quality property manner would be greatly appreciated. Thank You, Mike

Terry Lao · Answer

@Luke Weber

I own several 4plexs and looking for more in Las Vegas. The trend that I am noticing is sellers are listing their 4plex way higher than comps, and hoping to get all cash buyer. For example, today new listing for triplex, at 309k, off strip at Santa Paula Drive. When I spoke to the listing agent, I wanted to put 25%, and finance. I asked her about comps, and appraisal will not come close to 309k. At best 250k. Agent advised will not accept financing offer, only all cash.

Please confirm if you are doing that with your 299k listing. What do you think the appraisal will be?

Terry

Luke Weber · Answer

We closed on our fourplex last week.  The original buyer fell out because their appraisal came in at $240k on a $300k purchase (they said they would come up to $250k), we told them to pound sand and relisted.  Appraisal was bad, not just because it was low.  Cash offer came in and we closed at $295,000 March 1st.  It pays to know your market and your power as a seller (or buyer).  This is what's happening in Vegas.  A real appraisal should have hit $270k no problem and maybe a stretch to $280k.

@Terry Lao

Luke Weber · Answer

@Terry Lao yes, but they are selling, either cash or people paying above appraisal.  Pretty quickly the recorded values will catch up to the list prices.  Climb, plateau, climb, etc., etc.

Terry Lao · Answer

@Luke Weber

Sounds like your 4plex is 1681 Lamont Ave. It is upper north east Las Vegas. Rents 500-600 per units. If no HOA expenses, helps bottom line.

4plexs and under are selling pretty quick and most at list. I bought early and sitting on great cashflow and appreciation. It hard to pull trigger on prices now. When Raiders finish their stadium might be the time to sell.

Terry

Alexander Felice · Answer

If you're going to invest in long distance buy & hold, why would you pick vegas ?

Go east!

Luke Weber · Answer

Yep, although it's not a cap rate I would even consider holding, others are so I am happy to sell.

Terry Lao · Answer

@Luke Weber

What is the property address of your listing in Las Vegas? I know its a hot market in Las Vegas, but higher than appraisal by 50k?

Terry

Mike G. · Answer

@Luke Weber

Thanks Luke for the candid information! I use and I am a believer in strict tenant screening process. In my opinion, its one of the most important factors and one you should not compromise on. Do you have a screening service for this in Vegas you would recommend? In addition, I  would really appreciate your opinion....Is there a general area(s) that you would focus a search on that be at least C+ or better properties that with today's prices would be acceptable cash flow ($150+ a door) after all expenses and holdbacks for vacancy, maintenance and capex? Congratulations on the offers for your current 4-plex!

Thanks, Mike

Mike G. · Answer

@Antoine Martel

@Alexander Felice

Antoine and Alexander,

I am a W-2 employee is business development and in my job I travel to Las Vegas several times a year. Being able to leverage these business visits over a weekend is appealing to me. Even though prices are moving up in Vegas, they are still very affordable in comparison to Tacoma, Wa. I am open to other areas, (more west of the Mississippi the better) however I am starting to research and find out more about Vegas first.

Thanks, Mike

Mike G. · Answer

@Wayne Chartrand

Wayne,

I appreciate the lead and feedback. I will reach out to Eric.

Thanks, Mike

Long Distance Rentals in Las Vegas?

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