Las Vegas, NV · Member since 2015 · 9 posts · 2 votes
Hey BP Community,
Thank you for taking the time to check out my post.
My wife & I are new to Las Vegas, we are both former accountants from NY.
We’ve always wished about investing in REAL ESTATE & read books about it for years but we recently moved to Las Vegas for a new beginning & to FINALLY stop all the wishing and start doing.
We’re not exactly sure what direction we want to take but our GOAL is to own our first rental property before the end of 2018 (Single or Multi).
Anyone in the Vegas area (or out of it) willing to offer any advice to a young couple getting into real estate? We would appreciate it all. We just want connect with like-minded individuals to share some good energy / ideas with.
Linda forgot it’s 25%-28% of your Income when you’re buying and 25% when you’re renting, never 20%. She also forgot that half the houses are less than the median price. And then when she accidentally said houses have tripled when she meant doubled, and forgot to mention they are still 20% less than they were 10 years ago ($340k) maybe that’s where she go the 20% from.
I’m not quite sure why houses being more affordable to buy would be a good thing for a landlord anyway, but either way. You’ll find plenty of people just pop in to your life with a don’t do that, or you can’t do that and ZERO help, just ignore them and keep on moving forward.
I have literally shown 100 people what I’ve done, maybe 3 people wanted to hear more, and one might have bought the fourplex he lives in because of me, or because he didn’t want to move, I’m not sure which. We live in a world where the media celebrates the lottery winner instead of the business man/woman.
Welcome to Las Vegas. I'm invested in multi's and live in Southern California. I'm in the accounting and finance field. I have to keep the day job and invest on the side. Vegas weather is good, a bit more extreme in summer, but hard to beat southern california.
Did you get accounting positions in LV or where you financial set leaving NY?
Appreciate your reply! Awesome what you have going on.
No we didn't get acct positions here in LV. We're not opposed to the day job but we have been out of it for some time now & have been enjoying each other's time.
We are hoping to get into some investments similar to what you have going for yourself. Do you have an email address, we can connect on?
You picked a city with the #1 forecast top 100 metros by Realtor.com. When the above article came out in Dec'17, I knew already, but now everyone knows as reflected in median home price now being $280k. This is still a good deal for people in Southern California or New York.
Not sure if you are buying SFR home to live in first or investment.
Linda forgot it’s 25%-28% of your Income when you’re buying and 25% when you’re renting, never 20%. She also forgot that half the houses are less than the median price. And then when she accidentally said houses have tripled when she meant doubled, and forgot to mention they are still 20% less than they were 10 years ago ($340k) maybe that’s where she go the 20% from.
I’m not quite sure why houses being more affordable to buy would be a good thing for a landlord anyway, but either way. You’ll find plenty of people just pop in to your life with a don’t do that, or you can’t do that and ZERO help, just ignore them and keep on moving forward.
I have literally shown 100 people what I’ve done, maybe 3 people wanted to hear more, and one might have bought the fourplex he lives in because of me, or because he didn’t want to move, I’m not sure which. We live in a world where the media celebrates the lottery winner instead of the business man/woman.
Thank you for taking the time to check out my post.
My wife & I are new to Las Vegas, we are both former accountants from NY.
We’ve always wished about investing in REAL ESTATE & read books about it for years but we recently moved to Las Vegas for a new beginning & to FINALLY stop all the wishing and start doing.
We’re not exactly sure what direction we want to take but our GOAL is to own our first rental property before the end of 2018 (Single or Multi).
Anyone in the Vegas area (or out of it) willing to offer any advice to a young couple getting into real estate? We would appreciate it all. We just want connect with like-minded individuals to share some good energy / ideas with.
Linda forgot it’s 25%-28% of your Income when you’re buying and 25% when you’re renting, never 20%. She also forgot that half the houses are less than the median price. And then when she accidentally said houses have tripled when she meant doubled, and forgot to mention they are still 20% less than they were 10 years ago ($340k) maybe that’s where she go the 20% from.
I’m not quite sure why houses being more affordable to buy would be a good thing for a landlord anyway, but either way. You’ll find plenty of people just pop in to your life with a don’t do that, or you can’t do that and ZERO help, just ignore them and keep on moving forward.
I have literally shown 100 people what I’ve done, maybe 3 people wanted to hear more, and one might have bought the fourplex he lives in because of me, or because he didn’t want to move, I’m not sure which. We live in a world where the media celebrates the lottery winner instead of the business man/woman.
I doubt you'd be bragging about someone who bought a $275,000 4_ plex in a C-section neighborhood. 😂 Although in the bubble this did sell for upwards of $500,000. That was then this is now.
If you think there's going to be a bubble 2.0 now is the time to buy.
Please do tell prices your friend bought and what year.
I wouldn't wish my daughter living in a Vegas quad. Just not my kind of living.
Ive never purchased a fourplex. I just keep buying houses in Vegas. I’d have no problem living in any of them. That’s why I was talking about the median prices of houses and getting a loan.
Obviously if these were fourplexes it would be even easier. They could easily afford the mortgages because they could count the rent as income to qualify. And the average income to median house price info given wouldn’t matter at all.
But I’m sure they appreciated all the helpful information your post provided to help them get started.
Anywhere you look now, prices went up since 2013 to now, and still going up. However, buying now is still good especially when you have income of $75k per Linda's example, especially in Las Vegas.
Bill knows his numbers and have actual experience in Las Vegas, while Linda is hypothetical.
However, in Michael's original post, he noted that they are from New York. Moving to Las Vegas and seeing the current prices is like a kid in a candy store. If you live in New York or Southern California, not sure how you can complain even if median home price in Las Vegas is $280k. Orange County median price is around $600k. New York probably $800k.
Here is the other factor that you might or might not have considered. Nevada does not have a state income tax like California and New York. Right there you have at least 10% additional savings in taxes. For SFR, so as long as you are cash flow positive slightly positive or break even, you are ahead of the game. For multi's, you should able to cashflow positive about $500 net per month.
If purchasing a SFR to live in, you certainly do compare the home you can purchase in OC for example $700k, and in Las Vegas. You can probably purchase the equivalent in LV for around $300k in Summerline, and it would be even nicer than OC.
For investment, you compare all the numbers, and look at your ROI. Las Vegas has another factor that you might not have compared is that LV is still about 18% below their pre-recession highs while other cities have passed their pre-recession highs.
If you buy a 4plex now in LV for $280K that will cashflow net positive around $500 per month, I have no doubt that it will be $300k to $310k by end of the year. That comes out to about 29% ROI in appreciation and about 8% cashflow/return.
Where else are you going to find those returns for only 25% down or 70K?
I would like to buy another but not at the prices I have to pay today.
What kind of tenants you Get? I'm positive not a Beaver Cleaver kind of family. I'm thinking and know with quads in the past, got a lot of undocumented boy and girls.
Did you see my comment, My guy won't deal renting quads.
I exclusively bought 4plexs, and normally with multis you go for cashflow first, appreciation second. However, it turns out that appreciation has been greater than cashflow.
Rentals are not personal or emotional, meaning doesn't matter who you rent to as long as they pay monthly rent. With that said, one of my units, 2 bed 2 ba, has 2 adults and 4 children, rent for $650. When I bought, Mar'16, all four tenants never moved out. I rather have them move, then I can fix up and rent same 2 bed 2 bath for $800. All paid the monthly rent. Other 4plex is all section 8, and get higher rents, and in bank the first of every month.
Buying now is obviously not same as 2-3 years ago. When you and I bought, it is hard to buy when they have appreciated 80-100k. However, Las Vegas is still appreciating.