Starting out in Las Vegas

[Chii Wei Shieh]

Hi all， I am looking to get started with my buy and hold investment journey . I have done some research for past 6 months tracking MLS listing in Las Vegas and have challenge to find cash flow properties, if not cash purchase. I am also looking for investor friendly agents who also own investment properties. Thank you!

Really appreciate any feedback.

[Stephen DeThample]

Rent by the room (house hacking) is the best way to see a chance of cash flow.  Otherwise, you have to find an agent that will create offers below asking price for you.  Cash flow is elusive, but it's out there.  Let me know if you have any questions.

Good Luck!

[Terry Lao]

Chii

I would guess you are looking at SFR in Las Vegas, which there are over 4k listings. All or majority of SFR will cashflow negative. You are looking at the wrong type of property. You should look at 4plexs. There are only about 70, 4plexs available only MLS. So econ 101 tells you about supply vs demand, that 4plexs would be in greater demand due to less inventory.

Also, the financing of 4plexs is similar to SFR, but considered commercial once hit 5 units. The lowest 4plex in Las Vegas is around mid 550k, and highest just under 1M. If you purchase at 550k, with 25% down, you will cashflow positive around $700 or higher, depending if you bring up to market rents of 1200 for 2 bed 2 bath.

I know because I purchased 4plexs, and closely watch the 4plexs in Las Vegas.

Terrence

[Chii Wei Shieh]

Quote from @Terry Lao:

Chii

I would guess you are looking at SFR in Las Vegas, which there are over 4k listings. All or majority of SFR will cashflow negative. You are looking at the wrong type of property. You should look at 4plexs. There are only about 70, 4plexs available only MLS. So econ 101 tells you about supply vs demand, that 4plexs would be in greater demand due to less inventory.

Also, the financing of 4plexs is similar to SFR, but considered commercial once hit 5 units. The lowest 4plex in Las Vegas is around mid 550k, and highest just under 1M. If you purchase at 550k, with 25% down, you will cashflow positive around $700 or higher, depending if you bring up to market rents of 1200 for 2 bed 2 bath.

I know because I purchased 4plexs, and closely watch the 4plexs in Las Vegas.

Terrence

Thank you so much, Terry.  I was told by local realtor that the locations of multi families are mostly in Class D which safety is concern.  I will definitely check on multifamily now.  Thanks again.  Appreciate your insights.

[Chii Wei Shieh]

Quote from @Stephen DeThample:

Rent by the room (house hacking) is the best way to see a chance of cash flow.  Otherwise, you have to find an agent that will create offers below asking price for you.  Cash flow is elusive, but it's out there.  Let me know if you have any questions.

Good Luck!

Thanks！ Stephen,  House Hacking is definitely one of resolution. Will look into it.  Thanks again

[Terry Lao]

Chii

Most 4plexs are on the east side, thus C-D property. There are some by strip behind, MGM Casino, off Maryland , and B-C property. Also, some upper northeast of Summerlin, B property. It all depends on price, condition, and location. The 4plex prices ranges from low 500's to $1M.

I think the closer you are to casino strip the better. Also, near strip is UNLV University.

Terrence

[Chii Wei Shieh]

Quote from @Terry Lao:

Chii

Most 4plexs are on the east side, thus C-D property. There are some by strip behind, MGM Casino, off Maryland , and B-C property. Also, some upper northeast of Summerlin, B property. It all depends on price, condition, and location. The 4plex prices ranges from low 500's to $1M.

I think the closer you are to casino strip the better. Also, near strip is UNLV University.

Terrence

Awesome and thank you for sharing these insights. Much appreciated. 

[Carlos Bellido]

Quote from @Terry Lao:

Chii

I would guess you are looking at SFR in Las Vegas, which there are over 4k listings. All or majority of SFR will cashflow negative. You are looking at the wrong type of property. You should look at 4plexs. There are only about 70, 4plexs available only MLS. So econ 101 tells you about supply vs demand, that 4plexs would be in greater demand due to less inventory.

Also, the financing of 4plexs is similar to SFR, but considered commercial once hit 5 units. The lowest 4plex in Las Vegas is around mid 550k, and highest just under 1M. If you purchase at 550k, with 25% down, you will cashflow positive around $700 or higher, depending if you bring up to market rents of 1200 for 2 bed 2 bath.

I know because I purchased 4plexs, and closely watch the 4plexs in Las Vegas.

Terrence

In what area are getting this deals at  

[Terry Lao]

Carlos

I bought between 2012 and 2016, which at that time was really good in hindsight. But still did not lessen the risk as there is always risk. You have to crunch the numbers and see if they make sense.

There are around 40 4plexs currently in Las Vegas, and can be viewed on any MLS website like Zillow or Redfin. Most 4plexs are in C-D areas, like east side. There are some near the strip off of Maryland and Tropicana. The price range is low 500's to 1M. You will have better chance to cash flow at the low end and raise rents to market.

The interest rate now is 7-8% for 4plexs. Calculate the loan payment, and other expenses. You could still get $500-700 net monthly.

Terry