Las Vegas Rental Market?

Question

Looking to invest in Las Vegas and I am wondering what the real estate market is like? Are renters paying their rent? I know there is an eviction moritorium in place until March and could be extended. There seems to be some great deals there. I’m just wondering if it’s ideal at this time? Any advice is appreciated.

Bill B. · Answer

I had 2 of 12 tenants move out last year (both were there for more than 5 years.). Both properties were re-rented within 2 weeks at 15 & 19% rent increases. I have one that pays late. Other than that it's been all good in the SFR market.

A good first step might be to contact a property manager or two. Ask them how rent collections were last year and if they were getting better or worse. And then ask them what areas and types of properties are the easiest/fastest to rent out and collect the highest rents.

Phillip Dwyer · Answer

I mostly manage property in Henderson, but we have a few legacy clients in the Northwest around Centennial Hills and some in Summerlin.  We've seen good collection rates at only 1 currently non-paying tenant out of about 80.  Most of the stuff we manage is SFR built 1990 or newer, but we do have some condo units and a few older homes too.  Our collection issues have mostly been in the older homes.

Rents have been increasing in most of the areas we manage.  There's a shortage of rentals overall.

The eviction moratorium extensions proposed on the federal level are worrisome, but those will impact the entire nation, not just the Vegas market.

Maurice Smith · Answer

own a 4 plex a in north west vegas. paid 369 back in 02-2019  did a refi back in September got a 3.6% cash flow around  $1,100 after all expenses and it appraised for 490k. so im pretty pleased with that. one of my tenants wasn't paying rent for a few months. they applied for aid and i received all of there back rent that was owed.

more recently i purchased a tri plex in California for 700k got a 2.6% rate on it! originally plan was to house hack but how covid is set up i may not be able to vacate the tenants, so essentially i was able to acquire an investment property on owner occupied financing

Jenni McKenna · Answer

Simply, the real estate market is very hot right now.

In terms of tenants paying rent, through the pandemic, we have only had ~1% of tenants refuse to pay rent. Another 4% had to agree to some form of payment agreement, but all those properties are current as we exited 2020. If you want to find a good deal now, you will need to work with an experienced agent or PM company as inventory is moving so fast, you'll miss all the deals unless you and your agent are on top of everything.

In regards to multiplexes, my personal philosophy is to stay away from them. Yes, the initial numbers seem good (4 x 750 vs 1 x 1,750), but you must also consider that at that point you will be effectively maintaining 4 properties as opposed to just one. The maintenance costs will quickly add up. In addition, the turnover costs for multiplexes are usually higher as more work has to be done to get the property rent ready.

In regards to the area, what others are saying is correct. Here is a link to a discussion that has an in-depth explanation from Eric Fernwood about deciding where to invest and features the map Bill Brandt was referring to with each pin representing a client's property: https://www.biggerpockets.com/...

To find a good deal, its all about patience. Here is a short anecdote from the past year: There was a development off Horizon/Horizon Ridge called Quail Ridge. We had begun monitoring the development in September of 2019 (when they were initially just clearing the land) until prices were available in late May of 2020 (~9 months). I was initially skeptical about recommending new properties, as they typically take a little longer to get the cash flow and appreciation I am satisfied with. However, since we were so early in terms of trying to get properties in the community, the numbers worked out and we recommended it to our owners. Our recommendation resulted in 6 properties being purchased by various owners. When we revisited the community later in 2020, the purchase prices had risen to the point that I was no longer comfortable recommending further purchases in the community. So here, the patience paid off in terms of finding properties that were good deals, but you have to really have to have your finger on the pulse of the different developments going on in town.

Please feel free to reach out if you want to discuss property management, investing, or real estate in general.

Steven Carter · Answer

if you can afford a nicer area than Nellis do it! I personally haven't had any issues collecting rent and was just able to up the rent 18% in OCT.

Michael Robbins · Answer

@Galin Oliver I am collecting 97% of rents in Las Vegas/Henderson.  I have had success with the rental assistance programs and have obtained past due rent for my clients.  The key is having reserves while waiting for rental assistance checks to come in.  Now, this changes all the time but it has been taking (at least based on my personal experience) between 45-60 days to get a check.  So I would budget at least two months of rent in reserves.  The rents have continued to climb here and inventory is low.

David Nutakor · Answer

@Galin Oliver, l suggest you get in touch with @Eric Fernwood for recommendation on areas to get good deal and good tenants in the LV market. I have been working with Eric’s team for the past 4 years and my tenants have not disappointed so far regarding rent payments. Eric works with two PM companies and their tenants are mostly salaried employees who wouldn’t like to see negative comments on their credit reports, so they will always try to pay their rents on time. Good luck.

Felicia Feliciano · Answer

EUREKA ive found the magic bullet.

People alwas ask should i buy or not.  Ask a guy who actually owns property  their Status.  Buy mode, sell mode, enjoy Tequila mode.

Dont let them tell you what they did.  You want here and now.

Simple.

Dont even ask what a Real Estae agent thinks..........lol.

Joe Daigle · Answer

Most 4 doors are in D areas.  They could offer good cashflow if bought right.  But the other factors may overcome your cashflow—crime, D tenants and vacancies.

Las Vegas is mostly good for SFR’s.  But with HOA’s and there fees—that could eat your cashflow—-make most purchases good for appreciation, equity and tax benefits.  We were fortunate to buy when the market was at its low; currently it’s at an all time high.

Good luck.

Bill B. · Answer

Yes. I use key property management in Henderson. Been with them about 7 years after the first place I tried was horrible. If you look up Erick fernwood’s posts you’ll see a map drawing of where the properties he manages are. I own mostly in the head of the map he drew that looks like a sea creature.

North of Cheyenne, east of 95, west of mlk, and south of 215. (Though I have 1 west of 95, 1 east of MLK, and 2 north of 215 as they were primaries at one time for various reasons.)

Las Vegas Rental Market?

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