Buying In Las Vegas

Buying & Selling Real Estate
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Buying In Las Vegas

Luc M.
CT · Member since 2011 · 41 posts · 3 votes

Thanks mostly to the information and motivation stemming from this forum, I have purchased a rental house in Central Florida and am under contract for two additional homes. I will look to be adding more homes in Florida but my question today is regarding Las Vegas.

Can anyone recommend any good real estate brokers in Las Vegas that deal with out of town investors and does anyone have any good recommendations for property managers. I've had good experiences so far with my current PM in FL and I would love to be able to replicate that experience in another market. I know that Las Vegas is a tough market right now w/r/t supply, but I think it may not be too late to get some homes in that market for a buy and hold investor. I have to think that banks will figure out a way to accelerate foreclosures again so hopefully supply will be coming back to that market. I am a cash investor and am looking for long term rental properties (SFRs, not condos).

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Phillip Dwyer
Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
14y

Hello Luc,

As you mentioned in your post, inventory is getting very tight. As a result, it's quite competitive in our market right now. That said, it's still possible to acquire property. You'll just have to cast the line several times to catch a bite. You'll likely have to play with short sales as well. Decide on a price range, pick a neighborhood(s), and start doing some research. Feel free to contact me if you have questions. Good luck!

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  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    14y

    Hello Luc,

    As you mentioned in your post, inventory is getting very tight. As a result, it's quite competitive in our market right now. That said, it's still possible to acquire property. You'll just have to cast the line several times to catch a bite. You'll likely have to play with short sales as well. Decide on a price range, pick a neighborhood(s), and start doing some research. Feel free to contact me if you have questions. Good luck!

    1Reply
  • Nick Richardson
    Residential Real Estate Broker · Algonquin, IL · Member since 2012 · 52 posts · 6 votes
    14y

    Luc the Las Vegas market is still a good market to get into. The market is changing and lately has been really heating up but you can still find deals out there especially for buy and hold.

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  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    14y

    In many areas, Vegas being one of them, it is all a numbers game on the MLS. You have to write lots of offers and stick to your guns. Time will deliver the deal so long as you play the numbers.

    Podcast Guest on Show #130
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  • Donna Smolinski
    Flipper · Carlsbad, CA · Member since 2011 · 115 posts · 20 votes
    14y

    Las Vegas is REALLY HOT right now. Be prepared to write alot of offers before catching one. We got lucky on one 45 days ago, but wrote about 12 offers first. Been trying to buy a 2nd one for the past 45 days with zero luck (I won't pay full market value). Like Will said, it's a numbers game on the MLS.

    If you are buying to hold, you will probably be just fine to pay full market value. Check into Summerlin. One of the finest Master Planned communities in the Las Vegas area. It's beautiful, well planned, great neighborhoods, and you can still buy a very nice home under $100 per sq ft (these homes were selling over $200 per sq ft at the peak). Good luck!

    If you want a great place to stay, check out The Suncoast in Summerlin. Great prices, good restaurants, nice casino, movie theater, bowling alley. Absolutely everything under one roof and on a golf course too!

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  • Shari Posey
    Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes
    14y

    @Donna--I'm curious about about your opinion of the HOA dues and mello roos in Summerlin. I mean, I was told to watch out for those. Are the rents higher in those areas that would make up for that for buy and hold folks?

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  • Watson Smith
    Investor · Peachtree Corners, GA · Member since 2012 · 131 posts · 83 votes
    14y

    Luc M. ever thought about the Atlanta market? Its pretty hot right now for investment property but you can get your hands on a nice SFR for long term hold that will yield you a nice gain.

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  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    14y

    Shari,
    I'd say parts of Summerlin command higher rents. The HOA fees go towards beautiful landscaping, parks, trails, and events. Sale prices tend to be higher on a price/SF basis as well. I don't think you'll get as high of a cash flow on these properties compared to older parts of town without the HOAs, but long run this area is a good place to park money if you buy right. Turn over will likely be less in this area, and appreciation is more likely (say 10 years out). This depends on your strategy like any investment.

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  • Dave K.
    Real Estate Investor · Las Vegas, NV · Member since 2011 · 45 posts · 12 votes
    14y
    Originally posted by Shari Posey:
    @Donna--I'm curious about about your opinion of the HOA dues and mello roos in Summerlin. I mean, I was told to watch out for those. Are the rents higher in those areas that would make up for that for buy and hold folks?

    Shari,

    I have been looking and studying the Summerlin (far west newer area) for a bit. The homes rent higher than homes nearby in the southwest due to people wanting to send their kids to schools they perceive as being safer and better. The area is nice and most homes I've looked at have both a Masterplan hoa of about $41 and association fees. The association fees in the nicer gated area such as Queensridge range from $2-300 for guard/pool/tennis/amenities to $30 ish for a smaller gated complex with no amenities but just landscaping.

    The homes are nice and they were staying on the market for month or longer and being re-priced lower before the recent uptick. Now the homes I am studying are going within days of listing.
    Prices range from mid $150K for 3br and up and some homes are tightly packed. But the area is much nicer than the older parts of the city IMO.

    If you buy to hold and rent this could be a good place. I've seen some homes that sold at the highs of the market at $900K+ going for half. If I had the money, I'd be buying up all these fire sale homes. Another areas you can look is in the mountains edge where homes are also cheap and the builder said that ME was another "master planned" community but it's not as nice as Summerlin. If you look in Vegas, homes are going fast but the value is still there for longer term buy/holders.

    Dave

    P.S. I'm still a newbie with no rental homes and not even a RE license. Just someone very interested in RE and studying before getting started in the market.

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  • Shari Posey
    Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes
    14y

    Regarding Summerlin...How much would a typical $150k home rent for on the low end of the scale? I don't know the neighborhoods but there are tons of nice rentals on the internet in newer communities (less than 10 yrs old) for $1000-1300 per month.

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  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    14y

    I don't know the rental market in Sumerlin but I can tell you that at $150k all-in, unless you are getting over $2k in rent, you don't have true cash flow. Certainly you can pay all cash for such a thing, but you have to look at your COC return and compare that to other options.

    Podcast Guest on Show #130
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  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    14y

    At $150k all-in you will not get close to the 2k rent Will suggests for cash flow. Rent doesn't escalate in line with price in Vegas or most markets.

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  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    14y

    Shari,
    Your rent range is about right. You can typically expect $1100-1400.

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  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    14y
    Originally posted by Phillip Dwyer:
    At $150k all-in you will not get close to the 2k rent Will suggests for cash flow. Rent doesn't escalate in line with price in Vegas or most markets.
    Actually, I would disagree. At the $150k price point, correct, but you can buy at $60k all day long and get $1000 in rent in vegas.
    Podcast Guest on Show #130
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  • Jeff S.
    Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    14y
    Originally posted by Will Barnard:
    Originally posted by Phillip Dwyer:
    At $150k all-in you will not get close to the 2k rent Will suggests for cash flow. Rent doesn't escalate in line with price in Vegas or most markets.
    Actually, I would disagree. At the $150k price point, correct, but you can buy at $60k all day long and get $1000 in rent in vegas.

    Is that really true? How many offers to get a decent house for $60k? How long vacant to get $1000 rent?

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  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    14y

    Jeff,
    She was asking about Summerlin specifically. You won't find property in Summerlin fo $60k, unless you have an insiders deal.

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  • Jeff S.
    Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    14y

    Phillip,

    Thank you. How about Vegas in general. Can you get 60k houses that rent for a $1000 easily? My understanding is vacancies are a problem and finding properties tough. Is 60k w/ 1000 rent low hanging fruit or a tough find?

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  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    14y

    Jeff S. Inventory is down to an average of a 1-month supply throughout the valley. That said, acquisition in this price range is not easy right now. Most $60,000 properties will likely rent for less than $1000.

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  • Peter Lee
    Real Estate Investor · Member since 2011 · 56 posts · 9 votes
    14y

    Hard to get rent right now, I have a property that has been sitting in the market for almost 3 months now. Every 2-3 weeks dropping the price.

    My property in on the SW side of town, 1600sqft, 3 bed, asking $1100, then $1000, now $900 and still vacant. Tried the MLS, Craigslist, signs, word of mouth, nothing yet.

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  • Donna Smolinski
    Flipper · Carlsbad, CA · Member since 2011 · 115 posts · 20 votes
    14y

    Shari,

    Sorry I didn't respond to your questions. I've been in Vegas for two weeks wrapping up a couple purchases and I've not been on the computer much. Others seemed to have answered your questions, but I'll also add a little of my own opinion.

    We just purchased two Summerlin homes. BEST area in Vegas (IMO). Buyers and renters seek this area for high quality schools and a quiet family community. Terrific shopping, golf courses, restaurants, etc, without all the hustle bustle of most other parts of Vegas. We're actually considering retiring here. We just love it!

    Don't worry too much about the HOA & SID. It's the strict HOA that keeps Summerlin beautiful. And I do mean strict! With all the foreclosures & distressed homeowners, neighborhoods would start looking pretty bad if the HOA didn't step in. They site properties that need landscape or exterior maintenance and the banks usually take care of the violations when they take over a property. If not, the new owner must do so in a timely fashion.

    We've noticed that rents in Vegas are quite low on medium to large size homes. You can rent a 3000 sq ft house in Summerlin for approx $1800-1900. Now what's hard to understand is why condos/townhomes with approx 1100-1200 sq ft are renting for approx $900 a month (of course this depends on area too). Many Vegas condos are selling for 40-60k, so not a bad return for buy and hold.

    We spent ALOT of time doing research in Vegas before buying. Also, my brother has lived there for 25 yrs and is in construction, so he has a bundle of knowledge regarding specific communities, crime areas, etc, etc. Yes, it's a hot market there right now, but still a good place to invest. JUST DO YOUR HOMEWORK AND FIND A GOOD REALTOR THAT UNDERSTANDS YOUR NEEDS.

    Sorry again for the delayed response. Good luck to you.

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  • Andy Chu
    Involved In Real Estate · Las Vegas, NV · Member since 2010 · 341 posts · 86 votes
    14y

    I've never really understood the desire to buy in an area like Summerline which has an HOA, a master plan fee and a Summmerlin Improvement District Bond. After all said and done, it is very common to have those fees add up to about $250 a month.

    If this is going to be your second home or primary, then yes, I would say it makes sense. Otherwise, for an investment, you are talking closer to a 6% Cap rate.

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  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    14y
    Originally posted by Jeff S.:
    Phillip,

    Thank you. How about Vegas in general. Can you get 60k houses that rent for a $1000 easily? My understanding is vacancies are a problem and finding properties tough. Is 60k w/ 1000 rent low hanging fruit or a tough find?

    Getting deals is tough in most markets these days due to low inventories. That said, you need to work hard to find deals at $60k (of course you will likely need to put in up to $10k to make it rent ready. I see deals like this in North Vegas. They are harder to find now compared to 6 months / year ago.

    Low hanging fruit is likely priced higher so you have to work to get to the top of the tree.

    Podcast Guest on Show #130
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  • Stephen Masek
    Investor · Mission Viejo, CA · Member since 2012 · 627 posts · 204 votes
    14y

    You also need to consider what kind of tenant each area and house will attract. North Vegas properties will probably require much more maintenance and repair.

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  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    14y

    Stephen is right. You need to consider your areas carefully. North Las Vegas is going through a financial disaster that has resulted in the limiting of city services like police and fire protection. There are still decent opportunities there, but buyers should to take this into consideration
    Will, I agree with you as well. Deals are possible, but it's not like a year or two ago when you could just cast your line and reel in the $$. Rental inventory has also been rising in many of the lower priced areas, which suggest rent pricing is shifting or about to shift.

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  • Donna Smolinski
    Flipper · Carlsbad, CA · Member since 2011 · 115 posts · 20 votes
    14y

    Just for clarification for those not too familiar with Vegas. "North Las Vegas" is in financial disaster, as Phillip stated, BUT North Las Vegas is it's own city. Therefore the same crisis is not carried over to Las Vegas residents.

    Vegas rents - big houses with alot of sq footage do not warrant good rents (way too low per sq ft). Inexpensive condos/townhomes are warranting VERY good rents per sq ft. We are in escrow on a $41k townhome (decent area) and fair rent is $750-800 per month for 2+2 with a 2 car garage. I'll take that return all day/all nite. Hope I can find a couple more like that ::)) !!

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  • Peter Lee
    Real Estate Investor · Member since 2011 · 56 posts · 9 votes
    14y

    Donna, how much is the HOA?
    The HOA is usually the deal breaker for me as some are anywhere between $100 - $300 and a lot of HOA's are shady.

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