Brand new, From Las Vegas NV.

6 Replies

Hello all,

My name is Mahmoud, I am mechanical engineer residing in Las Vegas.

Me and my G.F. have been thinking about purchasing a home, but recently, we started reading more and more about investing in Real E. and thought that buying a small multi-family (house hacking) would be the perfect initiation for us. 

I would LOVE to meet like-minded people, no matter what they do (investors,managers, lenders, agents), or where they are in their journey.


If you are down for some chitchat over some coffee (on me!) please don't hesitate to contact me!


Hope to get to meet some of you soon. Thank you!

Mahmoud



Ideally, using FHA loan to buy a small multi-family (house hacking) is the best starting strategy. However, practically, it does not work in Las Vegas, because most of the 4-plex in Las Vegas are trash in class C-/D Area, in an area that you are scared to live in. To buy a property in Las Vegas, Spend more money on a SFR in a better location is better. Don't waste money on the 4-plex in Las Vegas.

Originally posted by @Account Closed :

Ideally, using FHA loan to buy a small multi-family (house hacking) is the best starting strategy. However, practically, it does not work in Las Vegas, because most of the 4-plex in Las Vegas are trash in class C-/D Area, in an area that you are scared to live in. To buy a property in Las Vegas, Spend more money on a SFR in a better location is better. Don't waste money on the 4-plex in Las Vegas.

 Hey Ran, 

Indeed, we have noticed the lack of any small Multifamily buildings in any of the B~A Areas.  Even in the new development areas [north of centennial hills], I have not seen any multifamily buildings. 

My next idea was to get a bigger SFR in centennial hills that would accommodate dividing into two separate residences, one of which to be rented out.

The main reason I we are hung on the idea of the househacking, beside cutting the costs, is to gain property management experience. 

Any ideas on how to make that work?

Selodomly, there are 4-plex in a better location asking for $650k, example like 4915 E Russell Rd, but one major issue I hate about those better location 4-plex is, they force you to pay 9% PM fee and use their property management company, and you are not allowed to manage the 4-plex yourself. The 9% mandatory property management fee eat up a lot of your profit, so I give up all multi-family in Las Vegas. If you are able to self-manage the properties yourself, it can save you a lot of money compare to using a property management company. I will only conside SFR, townhouse, or Condo in Las Vegas.

Of course, Condo has many of its own problems too, like high HOA fee, sometimes very strict HOA board members who make things very rough, issue many HOA violation letters to owner in a short period of time, which make Condo owner's life not so easy; in addition, there are many water leaking damages between Condo Upstairs and Downstairs units, then the Condo Upstairs owner and Condo Downstairs owner need to fight and argue who is responsible for the expensive water damage and Mold problem caused by the water damages, then it may lead to insurance claim, Mold remediation and restoration... many many troubles in Condo. Condo Downstairs tenants often complain too much noise from Upstairs tenants walking back and forth etc...

Since Condo has many problems caused by shared walls, HOA CCRs etc, SFR and townhouse may be a better choice.

Depends on your much you are willing to do, and how tight your money is.  If you really want to house hacking, rent out the individual rooms in your house may be a choice, but then you lose your privacy.  That's the trade off.  Either you get your own privacy but no rental income from the room, or rent out the rooms to maximize the rental income but lose your own privacy.  In case you rent out the rooms in your house individually, make sure screen the tenants very good, don't rent it to "Anybody" randomly or it may become a nightmare to you. 

Good luck

Welcome to the forums @Mahmoud Khairallah . For what it's worth, I am working with a developer currently to bring A-class multifamily product (2-4 units) to the Vegas market since there is a sore lacking of it here. Message me if you are interested in this, it will work perfectly for house hacking. 


In the meantime, you could try splitting an SFR, but it will be the equivalent of having a roommate with only one kitchen. It will give you more babysitting experience than property management experience, in my opinion. Also, is your goal to become a property manager or successful buy-and-hold investor? Those are different skillsets. I own multiple properties and am a licensed agent but have never managed any of them. I would focus more on accumulating enough capital or finding creative financing to get your first deal rolling without house hacking. Unless you are willing to tolerate a much less than desirable area :)

I agree with most of the sentiment behind Ran's posts. 

Originally posted by @Account Closed :

Selodomly, there are 4-plex in a better location asking for $650k, example like 4915 E Russell Rd, but one major issue I hate about those better location 4-plex is, they force you to pay 9% PM fee and use their property management company, and you are not allowed to manage the 4-plex yourself. The 9% mandatory property management fee eat up a lot of your profit, so I give up all multi-family in Las Vegas. If you are able to self-manage the properties yourself, it can save you a lot of money compare to using a property management company. I will only conside SFR, townhouse, or Condo in Las Vegas.

Of course, Condo has many of its own problems too, like high HOA fee, sometimes very strict HOA board members who make things very rough, issue many HOA violation letters to owner in a short period of time, which make Condo owner's life not so easy; in addition, there are many water leaking damages between Condo Upstairs and Downstairs units, then the Condo Upstairs owner and Condo Downstairs owner need to fight and argue who is responsible for the expensive water damage and Mold problem caused by the water damages, then it may lead to insurance claim, Mold remediation and restoration... many many troubles in Condo. Condo Downstairs tenants often complain too much noise from Upstairs tenants walking back and forth etc...

Since Condo has many problems caused by shared walls, HOA CCRs etc, SFR and townhouse may be a better choice.

Depends on your much you are willing to do, and how tight your money is.  If you really want to house hacking, rent out the individual rooms in your house may be a choice, but then you lose your privacy.  That's the trade off.  Either you get your own privacy but no rental income from the room, or rent out the rooms to maximize the rental income but lose your own privacy.  In case you rent out the rooms in your house individually, make sure screen the tenants very good, don't rent it to "Anybody" randomly or it may become a nightmare to you. 

Good luck

Hey Ryan, 

Again, thank you very much.  Perhaps, I will let go of the house hacking idea, and start looking for SFRs.  I am not willing to forgo the privacy of having no roommates. 

 

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