Why is Las Vegas inventory soooo high right now

8 Replies

Are you talking about Las Vegas NM? Las Vegas Nevada still has super low inventory. MAYBE 3 months worth. Still a seller’s market where stuff is under contract in less than 10 days. You MIGHT be able to get a deal on the top 5% of the price range (over $500k) but the meat and potatoes $200-$400k stuff just isn’t available. Buyers coming out of the wood work. 

Who would be selling now? If you lost your job you can’t move to a new house because you can’t get a loan, you can’t move in to a rental because you can’t qualify. You don’t have to make any payments because of forbearance, and only 8% have even taken that option. That’s probably not even enough to make up for the properties taken off the market. EVERY seller “knows” prices will be higher in a few months. So most people take their properties off the market Lowering inventory and driving prices higher over the last 3 months. 

@Phillip Dwyer

I think they are all being told that prices are lower right now because of the pandemic. (Even if I don’t think anyone can show more than a 2% variance.)

I’m not saying they will be higher (hence the quotes around know). The same reason buyers are still buying right now. They “know”, or are being told, prices will be higher once people start to relax. 

I was just on Redfin and compared to some other areas I have been looking into, Vegas seemed like there was a lot going on. I STAND CORRECTED, I wasn't using data just my eyes. Thank you Vegas investors for weighing in. And since I have you lot's attention, what is the best rental market down there? SF, MF, MH,...etc

SFR.

Small multi is all all older flat roofed and c/d neighborhoods. 

You're mainly playing appreciation with low maintenance and no income tax.

IMHO SFR tennants tend to stay longer and treat the property better.

Originally posted by @Bill Brandt :

SFR.

Small multi is all all older flat roofed and c/d neighborhoods. 

You’re mainly playing appreciation with low maintenance and no income tax. 

IMHO SFR tennants tend to stay longer and treat the property better.

If you buy in the current market, is it pretty unlikely to see much cash flow?  Even putting 25% down, most are netting even or slightly negative in cash flow.  Is that about common?

 

It’s probably a few bucks one way or the other. I never invested for cashflow. They do start to cashflow or flow better after years of raising rent faster than costs. But my plan was to put down 20-25% and have them paid off in 15 years by which time They would easily have doubled (5%  annual  growth) and that would mean an 8 x return on my 25% down.  I have 12 properties with only four loans left so it’s not a fair model. 

I just don't know where outside of real estate a guy with a 2 year degree can make $120k/year working 4 hours or less per month and pay virtually no taxes. This only took 5-7 years of moving to a new primary every year, before bigger pockets or the 100's of helpful books and websites even existed. Now people probably do that their first year. I just never felt the need to big, just comfortable.

Just get started.