Multi- Family properties analysis Las Vegas

8 Replies

Hi I'm a newbie investor and i'm looking to make my first investment into a duplex or a fourplex. 

After doing some research i came to understand that FHA would be out of the question since those type of properties are in C and D class neighborhoods here.

If anybody has invested into those kind of properties in Las Vegas in the last year or so please write a bit on your perspective and decision making strategy to make the purchase. 

Thanks

Why would you want a C or D property? Do you want to spend your time chasing rent payments, dealing with unexpected repairs, managing the eviction process? These properties look good in a spreadsheet, but terrible in reality. I've never lost money on an A-Class or B-Class property. I've only lost money in C-class.

@Ryan Miller

I've looked into the multifamily scene here in Las Vegas as well. Everyone I've talked to has very much encouraged against it because most of there are in terrible areas and not in good shape. They are also not going to attract good tenants. So what I've found is SFH in good neighborhoods is the best way to invest in Vegas. Lowest hassle and highest return and safest in the case of a market correction.

@Ryan Miller

I'm shopping for a 4-plex right now in C and D class neighborhoods here in Vegas. I'm house hacking with a VA loan and reccomend doing the same if you can.

The Vegas market for a first time investor is difficult with prices so high compared to a short time ago but it is possible even with C and D properties. These places are often the last stop before homelessness and with the huge influx of new transplants to the Vegas area, the prices are being driven up at every price point and the supply of affordable housing is low. In the low income spectrum you will find the troublemakers but also lots of hard-working ppl who will be long-term tenants because unlike A and B renters who leave to buy their own home, they stay for life.

The difficulty is when you buy. My opinion is that the available 4-plexes are overpriced because their isn't much supply of them right now. To make your cash flow work you have to find a way to negotiate the price down.

Best of Luck!

@Ryan Miller

P.S. If are are going to look at C or D class properties, I highly reccomend you find ones in the 'Opportunity Zone'. You will receive a tax benefit for buying in these areas that the government has recognized as needing revitalization.

www.diversifynevada.com

or

www.clarkcountynv.gov

...and search for opportunity zone

Bottom line, Vegas is already a difficult market for SFR's so to try and find multi family properties is going to be even harder. If you are new, why start out there. This is no doubt the quickest way to make you quit the business. Try and find condos, townhomes or just a house first. Get to know the market and how it is acting. Too many people trying to come in and go straight to the big leagues and haven't even sold a 900 sqft house yet.

Good luck, 

Louis

Originally posted by @Julie Dillon :

@Ryan Miller

P.S. If are are going to look at C or D class properties, I highly reccomend you find ones in the 'Opportunity Zone'. You will receive a tax benefit for buying in these areas that the government has recognized as needing revitalization.

www.diversifynevada.com

... search for opportunity zone

 This is not 100% true. You need to have capital gains from the disposition of an asset to get the benefits of this. Simply investing in the zone will not get you the benefits. Please talk to a CPA before utilizing this strategy. 

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