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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  • Leon Y.
    Real Estate Investor · Las Vegas, NV · Member since 2011 · 117 posts · 28 votes
    14y

    I started buying in Vegas back in 2011 and it was a great market to buy it. Fast forward to 2012 the competition has been insane. I was flipping in 2011 but now there aren't too many opportunities to do that. All the agents are complaining about the competition. I have started buying creatively like doing seller financing deals which fits my long term model.

    I am starting to really dislike owning anything with HOA. Aside from a cash flow drain, I always get bugged by them for silly little things like weeds and "missing screen doors" that forces me to put more time to managing and training my tenants.

    I would much rather invest just outside of Summerlin rather than in it. North Las Vegas is not so bad if you invest near Aliante. There are so good neighborhoods out there.

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

    Leon Yang

    Your Rehab Project is looking good Leon!
    I see your doing the tile work yourself.

    I know a guy will work for cheap, but I have to give him more business. If you're interested, let me know.

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

    Dave, that green upload now button on photobucket does not appear on my IPad screen. I even sent a help request with no response. I gave up.

    Podcast Guest on Show #130
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  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    14y

    There's a photobucket app for iPad/IPhone.

    0Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    14y

    Do you download that from their site or IPad app store?

    Podcast Guest on Show #130
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  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    14y

    Jon, I see an IPhone app but not an IPad app there.

    Podcast Guest on Show #130
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  • Dave K.
    Real Estate Investor · Las Vegas, NV · Member since 2011 · 45 posts · 12 votes
    14y
    Originally posted by Will Barnard:
    Dave, that green upload now button on photobucket does not appear on my IPad screen. I even sent a help request with no response. I gave up.

    @Will,

    I'm not sure about the Ipad/Phone app but try navigating to the photobucket site itself and log in. You'll see it there and if you do not, look at the far bottom of the screen where it will say "view full website" as the mobile site ie m.photobucket.com will not have the upload button. That's the problem with viewing sites on tablets.. the mobile site misses alot of things and on mobile i've yet to find a good ad blocker. BTW I'm using android so it might be slightly different.

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  • Dave K.
    Real Estate Investor · Las Vegas, NV · Member since 2011 · 45 posts · 12 votes
    14y
    Originally posted by Leon Yang:
    I started buying in Vegas back in 2011 and it was a great market to buy it. Fast forward to 2012 the competition has been insane. I was flipping in 2011 but now there aren't too many opportunities to do that. All the agents are complaining about the competition. I have started buying creatively like doing seller financing deals which fits my long term model.

    I am starting to really dislike owning anything with HOA. Aside from a cash flow drain, I always get bugged by them for silly little things like weeds and "missing screen doors" that forces me to put more time to managing and training my tenants.

    I would much rather invest just outside of Summerlin rather than in it. North Las Vegas is not so bad if you invest near Aliante. There are so good neighborhoods out there.

    Las Vegas it seems is notorious for bad HOAs even outside of Summerlin. I've seen some bad HOA management companies here with very unintelligent /unprofessional workers to unqualified inspectors who have said to me, "if you are upset over your violations, just report your neighbors violations". Not only does he not know how to do this job, now he's asking me to be a snitch and help the HOA get more fines? Ridiculous. Its especially bad if you have a nosy neighbor being written up for non violations and they take it out on the whole neighborhood by reporting everything to the HOA.
    We have seen 3 different HOAs in the past 5 years.

    0Reply
  • Stephen Masek
    Investor · Mission Viejo, CA · Member since 2012 · 627 posts · 204 votes
    14y

    A good story: The management company for the HOA for the house we bought in Las Vegas last year sent a letter saying that we could hold off on dues for a few months, as they had too much money (banks paying back dues and penalties).

    The situation in Minsk is similar to that in Vilnius - an unfinished (just pipes sticking out with no wall finishes in the kitchen and bathroom, concrete floor) condominium (they call them flats) on the main shopping street for $500,000! Yes, it is an excellent location, but that is a radically high multiple of annual earnings. Still, most people own their residences and cars outright. An older two bedroom Soviet-style block condominium unit might be $100,000.

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  • Stephen Masek
    Investor · Mission Viejo, CA · Member since 2012 · 627 posts · 204 votes
    14y

    It is getting strange. Our real estate agent told us that one of the other offers on a short sale we are chasing includes a $25,000 earnest money deposit (the selling agent must have told him). I said, what the heck, I'll do to the full amount of my offer. What I won't do is overpay.

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

    I finally found some time to get the photo done and uploaded.
    Hopefully this works . . .

    Now, without further delay, the main reason to be buying in Vegas is . . .
    My office view!
    [img][/img]

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

    Nice!

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

    Is it me, or has the buying demand in Las Vegas soften a bit?

    0Reply
  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    14y

    Peter Lee I just checked MLS for total SFR sales for July and so far this month. July had about 93 sales per day. August has been averaging 74 per day so far. Meanwhile June averaged 107 per day. I still think the main reason the numbers are dipping is the shortage of inventory. June had a median of 33 days on market, July had a median 32 days on market, and so far August has a median of 27 days on market. This last trend suggests demand remains strong.

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  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    14y
    Originally posted by Peter Lee:
    Is it me, or has the buying demand in Las Vegas soften a bit?
    It appears it is the opposite. With lower inventory levels and a buyers pool looking for inventory, the demand is higher, not lower. What is lower is inventory and closed sales.
    Podcast Guest on Show #130
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  • Nick Richardson
    Residential Real Estate Broker · Algonquin, IL · Member since 2012 · 52 posts · 6 votes
    14y
    Originally posted by Peter Lee:
    Is it me, or has the buying demand in Las Vegas soften a bit?

    It is just you. Homes are still getting multiple offers and are getting them right away when listed. The demand is still there and it is still very strong.

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  • Bruce M.
    Real Estate Investor, CA · Member since 2012 · 93 posts · 20 votes
    14y

    In my opinion, the Las Vegas market is about 12 to 18 months behind what happened in Phoenix. These markets got to a point where they were so cheap it simply made sense to many investors like me to start buying there. I don't think Vegas will appreciate as fast as Phoenix has but I do think it will go up nicely. I started buying in LV last November and many rolled their eyes when I told them. It just seemed like it could not go down much more based on what it would cost to build the same house. I was buying in the 85K to 105K price point for SFRs and bought a few condos at around 50K. Rents for the houses have been in the 1100 to 1300 range and the condos around 850. I hate HOAs but they still cash flowed. Some of the houses even have HOAs there if built after the mid 90s. Things started to really change in the 1st quarter and there is a lack of inventory mostly because of NV foreclosure legislation. I watch the stats and the LV median has gone up at a fast clip this year.

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

    I'm going to Vegas on Monday to look at some properties. I'm looking at some $30-40k condos that "supposedly" will rent for $650-750. I've looked at Craigslist and found some nice-looking apartment complex that rent at the low end of that scale, which worries me. I don't like HOAs either but they still cash flow at the low end of the rental market.

    Any advice?? Any good or bad info about Henderson?

    P.S. I only have $70k cash to work with, so I was thinking to buy 2 condos rather than 1 SFR.

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

    Shari Posey This would depend upon the amount of the HOA fee, the condition of the buildings and grounds, and the status of the reserve. HOA fees for condos are typically range from $150-$225. If you have two condos renting at $1300 per month minus the $500 in HOA fees, you'll have $800 left. In your price range, the rents could likely be dipping into the low to mid $500 range. Additionally, it takes longer typically to rent a condo than a SFR. Meanwhile, you could purchase one SFR and get $700-$900 in rent with no HOA fees, only one insurance premium, one set of taxes, one property management fee, etc.

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

    Hi Phillip,

    Do you know how to verify how much the HOA fee's are?
    I checked the MLS and a few of them within the same HOA, some even on the same street, near the same listing dates too have different amounts usually by $10 - $30.

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

    Peter Lee The best way is to call the HOA/management company. I use the MLS as starting point, and then verify with the HOA.

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

    Thanks Phillip, I didn't see the telephone number before, only the HOA name.

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

    I figured--
    2 condos for $35k each, renting for $650 each, $135 HOA, prop tax of $43, NET--$944 (minus income tax)

    OR

    $70k house would rent for $800, prop tax. $87, insurance$75, gardener $50, NET--$588

    Rents for the condos would have to go down to $450 for the house to net better. Of course, HOA dues go up plus special assessments always happen but you also have repairs with houses, too.

    I will self-manage with the assistance of our agent. The investment in condos doesn't make sense if they take months to rent. We have a few condo rentals in LA and we rent on the low side to keep them occupied and easy to rent. It may mean we need to rent lower than $650--I haven't seen what the units look like yet. One thing I do know is we only have $70k to invest. So we have 3 options--2 condos, 1 house or nothing. If they are total dumps it will be #3.

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

    Shari Posey Don't forget to account for what your time is worth. Also you didn't add insurance for both condo units. Be sure to check on who's responsible for the HVAC system with the condos. I'd also be leary of the the apartment-to-condo conversions.

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