I just moved into Vegas about two months ago. I have been pushing off starting my RE investing until I have more money to invest. I dont see myself wholesaling, nor do i want to borrow from freinds and family if I dont have to. so I kind of wanted to wait until I have the money to buy a 10 unit mini apartment ecomplex.
However, I have been researching lease options and it seems to be a way to get involved in real estate without borrowing and without laying out alot for a down payment, while still bringing in some cash.
I wanted to know if anyone on here has had any experience in lease options, positive or negative, and how easily or hard it is to get the right houses with minimal risk- especially in vegas, as Id like to invest locally.
Any advice at all would help a lot!!!
Type "lease options" in the search bar and read through some threads. There are 3 really active l/o guys that offer lots of help here
Found them! Thanks!!
A 10 unit apartment complex with a lease option screams disaster for the Vegas market. Keep in mind that we do not have too many units built after the 1960s and usually all in rough areas. However, let's say you do find the property. A lease option by definition means you are going to pay market rent + option money. Which means that even if you get all units rented out, you will still be bleeding cash.
I disagree with Andy's general statement that lease options require you to pay market rent + an option fee. There are plenty of reasons a seller will let you take a property off of their hands for a monthly fee that is well under the amount of rents you can collect if the building was performing to its potential.
I prefer to buy via owner financing/subject-to/etc and sell via a lease and option, but buying via a lease and option is not a bad choice especially if you aren't terribly familiar with the market.
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!