Multifamily Househack in Las Vegas

7 Replies

Hello Everyone, I am moving to Las Vegas, NV from CA in early 2022. My goal is to purchase and househack a multifamily property valued at ~$400,000 by 2024. I am looking to generate atleast $200 of positive cash flow per month from the househack. I am new to Las Vegas, so please feel free to share any general advice. I would greatly appreciate it!

Here are some questions that I have in mind rn:

1. Are multifamily properties a great investment to househack in Las Vegas?

2. What are some recommended locations that I should consider to buy a rental property?

3. I am aware that there are alot of houses being built in LV. What are some developing locations that show great rental potential?

As mentioned. You will have to be young/adventurous to house hack a SMF in Vegas. I’d suggest you reach out to @Terry Lao I consider him an expert on the subject. You’ll find 80% are “inner core” and about 10% to the west and 10% up north. (Many of which will be nicer and newer but more expensive.)

Unfortunately we don't have "Midwest 4 plexes". (Brick fourplexes that we 50 years old but look like they were built yesterday mixed in among the SFR.)

@Bill Brandt

Always nice to hear from you. 

Here's some facts about 4plexs, and your observations with you plan.

Facts.

1. I just did a search of true 4plexs (2bed/1-2 bed x 4) on Redfin, there are currently about 28 available listings on MLS. SFR about 3073. Condo/townhome about 924. Low inventory across all of Las Vegas, but extreme low for 4plexs. What does econ 101 tell you?

2. Most 4plexs are older and in bad areas (east and north). In my opinion, the best area is near strip, which is also near UNLV.

3. Rents going up with inflation, even 2bed/2bath getting $900 per month, on east side.

4. For $400k, it is the lower end of 4plexs, and on the east and north Las Vegas. Are you willing to live in a bad part of Las Vegas?

5. For 2022 annual appreciation/growth, the experts are predicting, zillow 13.6% increase, goldmansachs  16% increase, fannie me 7.9% increase, core logic 1.9% increase, mortgage bankers assoc -2.5% decrease, redfin 3% increase, michael uber 10% increase. 

6. Your 400k by 2024, may or may not pan out. Why are you waiting? Rates are going up.

Las Vegas median SFR last month Oct'21 was $410k. A few days from end of November, and I'm hearing that Nov'21 will come in at $420k, up 10k for month, and up 21.7% YoY. Unbelievable gain for 2021.

For example, if you decided to wait in Jan'21, when median SFR was $345k, then now up another 75k. If you wait, then it might work against you. If you pull the trigger, it still might go against you. However, run the numbers, and that will tell you what to do.

@Terry Lao

//Thank you for the feedback!

No. I do not intend to live in the bad parts of Las Vegas. I am predicting that multifamily properties will be built in the developing neighborhoods.

Yes. I am aware of appreciation rates going up. I currently do not have the funds to invest yet. Earliest I could probably invest is in 2023.

@Sean Zachary Agpaoa

Not having funds is definitely going to make things more difficult. It's always hardest to purchase your first property.

I am not aware of any multi-family being newly built in Las Vegas since 2013. The current cost per square foot to build is about $240. A typical 4plex could be 4000 sq. ft., thus 4000 x 240 =960,000, and you still have to buy the land, maybe another 200-300k. Let's say $1.25M to build a 4plex in average area. You have 4plexs in Spring Valley for $550-600k. Conclusion - no developer/investor will build at $240 per sq foot. Back in 2014, when square foot to build was $100, still no developer/investor will build. This is why you will not see any new 4plexs. Now, rehab/flip an existing 4plex, done all the time, and price sensitive.