Additional expenses for short term rental properties in Las Vegas

[Alexandra Gomez]

Hi, I am interested in buying an investment property in Las Vegas. I am debating between short (short and B&B) and long-term rentals as well as finding the right location. I recently read that the City created strict regulations and increased owner fees when it comes to short term rentals. My question is, how much of a difference would I need to pay in permits, taxes and licenses for a short-term in comparison to a regular long-term rental property? 

[Alexandra Gomez]

@Terry Lao I don't own any property so big plus!

Is applying for the loan same as getting Pre-Approval? I heard that Pre-Qual is different than Pre approval. If the answer is yes, I guess I need to apply for a loan ASAP (just providing any address). Now it is a good time because I do have paystubs for the last two months. If I wait, let's say one more month I won't  be able to show work income for the last month and that would be a headache.

I just spoke with a company that has a team (realtor, lender and property managers) and I am about to speak with the lender. Any questions besides the ones I have already asked you that you suggest I ask her? Also, should I find my own lender? considering I am not so experienced, I think it is better to work with a team like the one I am about to work with, however this is just an speculation of mine and would love to hear what you think.

Thanks!

[Terry Lao]

@Alexandra Gomez

Pre-qual is a step below pre-approval, but some see it as the same. One just has more paper work than other. If you are pre-approved, then you pretty much given them all the paper worked needed, like 2 years tax returns, bank statements, paycheck stubs, ran credit report. 

Which city was "team" in, LV or CA? Lenders in California need a brokers license in Nevada to do loans. The one I go through does. Lenders charge different points and fees. I would select one mortgage company as primary (first option), and secondary (2nd option). If you've been doing loans as long as I have, then when you get a lender all of a sudden say the interest rates went up, and they really haven't you have another option. Also, lenders will often say, we will beat our competitors. However, when you call them on it, they will ask for a good faith estimate from the other lender, and the only way to get a good faith estimate is by taking a loan application. 9 of 10 people do not think this far ahead and the lender knows this. How do I know? because i was in mortgage lending back in the day. This strategy is good if you have a high fico (780), and can take two credit reports run on you. 

Note. your team is not your friend. This is a business for them.

Terry

[Alexandra Gomez]

@Terry Lao they are in LV

What lending company in California do you use? How do I select a mortgage company that has good rates, any suggestions? Have you heard of Logix? I think they have a license to do business in other states, they are my second option. 

[Terry Lao]

@Alexandra Gomez

I use Cashcall mortgage, not the best, not the worst, just familiar with them. 

https://www.cashcallmortgage.com/rates

the link is to their website. click download rates, and then you can see their rates, but you have to know how to read this sheet. Also, I download one every day when in loan process to see what changes up or down, then I will know their position. If any company does not publish rate sheet, then you are just taking their word.

Have not heard of Logix. Do they have website and rate sheet? can also see feedback on Yelp.

It's a lot work just to get the best rate, but if you are "A" worthiness, then you deserve the best rate.

And you haven't even got to the " how to compete against cash buyer" part yet.

Terry 

[Alexandra Gomez]

@Terry Lao they have good rates. Below 4% https://www.logixmortgage.com/default.asp?siteId=C...

I need to call and ask if they have a license in NV.

Thanks for all the info. I may bother you with some more questions once I have a better picture of the situation. Thanks for all your help

[Terry Lao]

@Alexandra Gomez

I saw logix website, looks like a credit union, and they do mortgage loans in Nevada. Many financial institutions can do loans, but most will be sold to fannie mae/freddie mac (secondary market). When you finish your loan and sign loan docs, one of the documents you will sign gives Logix the right to sell your loan. I say 80-90% of originated loans will be sold. 

December/January is best time to purchase. Spring/Summer best time to sell. It will take time to find home, offer, and get accepted. 

I'll send you colleague offline, as don't want to share all my secrets.

terry

[Luke Carl]

It’s a big city do long term. People are paying too much for houses thinking they’ll short term and make more money. Until the city shuts them down. Then what? You can’t log term because you paid too much.