Would you invest in Las Vegas?

Most Popular Reply

Terry Lao
Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
7y

@Michael Junior

@Bill B.

The best time to buy in Las Vegas was 2012-2016. The price bottomed when home values lost over 50% value from peak of $315k in June 2006. Now, SFR median as of Nov'18, was $296k. Still not back to the peak. While Los Angeles, Orange County, Bay Area, all reached peak and passed. Realtor.com forecast 2019 for Las Vegas appreciation to rise by 7.9%, with rank #2. This year 2018, Las Vegas is #1, surpassing Seattle at the top stop. The rankings are based upon percentage, and when you lost the most, you also have the most to gain. Las Vegas is also top spot for those leaving southern california due to cost of living and high taxes. Big plus, Las Vegas does not have state tax.

It is true that 4plexs are not in the best areas of Las Vegas. Most are east and north, but there are patches in spring valley, near the strip, and east of the 95 close to Summerlin. Most are also older, built before 1980. A current search of 4plexs vs. SFR, would show about a 2 percent ratio, which means for every 100 listings of SFR, there are 2 multi's. The basic supply demand economics would favor multi's.

Overall, crunch the numbers and see if makes sense on paper. A good rule of thumb would be the 1% rule. If OOS, then make sure you have good team in place, handyman, tenants, appliance guy, home warranty, etc. If decide to have management company, they will take 8-10%, but need to justify the cost. 

Terry

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    this is a good question.. many of the 4 plex's in Vegas tend to be in pretty rough locations.

    some will say they are dogs others like them.. so I think it depends on the properties themselves.

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    1Reply
  • Account Closed
    Member since 2018 · 214 posts · 175 votes
    7y

    I would and have been investing in Las Vegas, but focus on SFR, townhouse, or condo only; absolutely not 4-plex because most 4-plex are in D area...

    1Reply
  • Tie Lasater
    Keller, TX · Member since 2018 · 68 posts · 47 votes
    7y

    I agree with @Jay Hinrichs here.  Use some market analysis on crime areas, I use Trulia and www.crimereports.com then overlay that with the tourist areas or areas where there is strong rent comps.  Then I would stick to the areas that have strong rent placement and low vacancies with the highest rents.

    2Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    7y

    I've done all SFR but today's paper reiterated that Las Vegas was again the appreciation leader of the country. So buying today may be rough. I'd love to go to fourplexes, but not here. I buy less than 20 year old houses, with stucco siding, with garages, pitched roofs, in decent neighborhoods...

    Las Vegas fourplexes are about the opposite in every concern. If I was serious about them I’d hit up @Terry Lao and take him to lunch/dinner. He’s an oos Las Vegas 4plex investor. 

    We have non-factor weather, no income tax, low property tax, cheap flights, we favor landlords and have good llc laws including series llc. But it's not STR friendly in the least. You could buy for the reason I bought my MN lakefront rental, I plan to live there some day. If you want to live in Vegas when your old and crusty buying now can be part of you're retirement plan.

    3Reply
  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    7y

    @Michael Junior

    @Bill B.

    The best time to buy in Las Vegas was 2012-2016. The price bottomed when home values lost over 50% value from peak of $315k in June 2006. Now, SFR median as of Nov'18, was $296k. Still not back to the peak. While Los Angeles, Orange County, Bay Area, all reached peak and passed. Realtor.com forecast 2019 for Las Vegas appreciation to rise by 7.9%, with rank #2. This year 2018, Las Vegas is #1, surpassing Seattle at the top stop. The rankings are based upon percentage, and when you lost the most, you also have the most to gain. Las Vegas is also top spot for those leaving southern california due to cost of living and high taxes. Big plus, Las Vegas does not have state tax.

    It is true that 4plexs are not in the best areas of Las Vegas. Most are east and north, but there are patches in spring valley, near the strip, and east of the 95 close to Summerlin. Most are also older, built before 1980. A current search of 4plexs vs. SFR, would show about a 2 percent ratio, which means for every 100 listings of SFR, there are 2 multi's. The basic supply demand economics would favor multi's.

    Overall, crunch the numbers and see if makes sense on paper. A good rule of thumb would be the 1% rule. If OOS, then make sure you have good team in place, handyman, tenants, appliance guy, home warranty, etc. If decide to have management company, they will take 8-10%, but need to justify the cost. 

    Terry

    5Reply
  • Brandon Carriere
    Realtor · Las Vegas, NV · Member since 2018 · 218 posts · 147 votes
    7y

    No, no, and no..  @Terry Lao is right, the time has passed..  We're at or near what I feel the short-medium term peak is, and cash flow is mostly horrible..  Keep going east about 1500 miles to where the money is..  I too have been reading the "experts" seeing around an 8% increase this year, but what I'm experiencing on the inside is a different feeling market than last year..  Id agree that the under 300k price range will be the hot spot and appreciate the most because its all thats affordable to a majority of the locals

    I guess if spending 300k on an SFR to rent for $1400/month gets your juices flowing, (with almost all the appreciation already baked in that lofty sales price), then you hit the jackpot...

    0Reply
  • Brandon Carriere
    Realtor · Las Vegas, NV · Member since 2018 · 218 posts · 147 votes
    7y

    @Michael Junior

    As an amateur OOS investor, for the love of god, please don't buy a 4-plex here..  I forbid you to do that, lol

    1Reply
  • Michael Junior
    OP
    Real Estate Agent · San Diego, CA · Member since 2018 · 124 posts · 50 votes
    7y

    @Brandon Carriere lmao I’ll take your word for it thank you

    0Reply
  • Michael Junior
    OP
    Real Estate Agent · San Diego, CA · Member since 2018 · 124 posts · 50 votes
    7y

    @Brandon Carriere nope I’ll keep it moving, I like making money not losing it !

    0Reply
  • Michael Junior
    OP
    Real Estate Agent · San Diego, CA · Member since 2018 · 124 posts · 50 votes
    7y

    @Terry Lao thank you for the insight i appreciate it! Will deff take all into consideration

    0Reply
  • John Barrows
    Real Estate Broker · Auburn, WA · Member since 2015 · 151 posts · 106 votes
    7y

    In ANY MARKET, investors will generally have a "cheat sheet" they will abide by when investing in any property. If you don't understand the purchase, fix up, run rates and flip costs you will become a statistic to ANY TYPE of investing. Be prepared to get your hands dirty because most generally, the people you hire are not the most responsible/reliable workers in the world.

    Also, properties UP to a 4plex will have different rules and obligations that you will need to brush up on. Good luck with your investments.

    0Reply
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