Las Vegas Four-plexes

Pasadena, CA · Member since 2016 · 5 posts · 6 votes

Is anyone familiar with investing in four-plexes around the Las Vegas area? I am looking to purchase my first investment property and am looking for an investor-friendly agent and some guidance. More specifically, here are some initial questions I had.

- What does the local RE community think about investing in these four-plexes? I understand that people have different investing philosophies, but many of these properties seem to produce decent cash flow.

- What would you consider the A or B neighborhoods for four-plexes? Conversely, are there any neighborhoods a new investor should absolutely avoid?

- I know that your mileage may very with property insurance, but what's an estimate for property in the $200-250k range

Thank you everyone.

David

3 Reply

85 views

Most Popular Reply

Troy Fisher

Specialist · Kirkland, WA · Member since 2013 · 1k+ posts · 817 votes

10y

@Phillip Dwyer and @Robert Adams are both good investor friendly agents in the area. In Vegas Proper there aren't many B or A places for 4Plexes. They tend to be in War Zones, which has higher cashflow and ROI, but has many more headaches. I did well on a couple of 4plexes in the area when I bought in 2010, and have one left I am always looking to sell.

5 Reply

See this reply in the discussion

45 Replies

Jump to latestLatest

Sort by

Terry Lao
Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
6y
@Adan Solis
You are in the ballpark and not out of line with 750, 900, and 1100. However, in this area Maryland and Tropicana, and only area that I have seen, comes with a one car garage. If includes garage, then I would put extra $50 premium.
Terry
0 Reply
Adan Solis
Member since 2019 · 2 posts · 0 votes
6y
@Terry Lao

Thanks for the quick response. It looks like we are talking about the same buildings. You got a fantastic deal when you bought in 2017 for $170k. It is going for around $370k now, I still think that it may be possible to house hack. It sounds like with good tenant screening even in that area it is possible to get good steady tenants, which is a big plus.

If i can ask, how much is the property tax going for and also how much is the home insurance. I'm thinking $2600 and $1000 yearly respectively.
Edit: Added a number i missed.
0 Reply
Terry Lao
Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
6y
@Adan Solis
My current annual property tax is $1242. My property insurance is about $1k. To lower your insurance, take a higher deductible. Also, never make a small claim, otherwise carrier will raise your premiums next year.
Current comps are $380k, $367, and $375k.
Terry
1 Reply
Robert AdamsBusiness Member
Real Estate Broker · Henderson, NV · Member since 2009 · 1k+ posts · 373 votes
6y
I would like to add that a lot of multifamily in Vegas have artificially low returns due to low rental rates from existing tenants that have been there a long time. I am seeing investors buy these units get the tenants out, improve the building, then releasing at much hire rates and holding the property while multifamily is continuing to appreciate like crazy and then planning to resell with the new returns being much more attractive to the end investor. We just put a 4plex in escrow yesterday. Happy Holidays everyone!
[email protected]702-349-9175
The Adams Team at Rothwell Gornt Companies4.970 Reviews
Website View Page
0 Reply
Conrad Steinweg
Member since 2019 · 8 posts · 1 vote
6y
I'm glad the thread fired up again. Let's take Terry's example from Carriage Park. Wheelright dr area. He bought for 170K 3 years ago A few 4 plexes were/are for sale. Prices were 300K to 320. They were in the 220/240K range just 2.5 years ago. So Terry made large equity in just 6 months there, and a killing over the 3 years. Great for someone who bought then. With the example I analyzed, HOA was $1450/month or $17,400 annually. Rents are in the 650/800 range so lets say $2900 or 34.5K annually. opex 16K. Mortgage 25% down would be $1,130 ish or $13560. I'm a newbie but that looks like $-1000/month cashflow so you're relying completely on appreciation to make money, and you're trying to convince tenants to pay more, over $800. If the properties crashed in value, back to 170-200, that HOA would still kill it. Am I missing something? I have found 4plex HOAs for the 600-700 range.
0 Reply
Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
6y
Greta’s back...:-)
0 Reply
Terry Lao
Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
6y
@Conrad Steinweg
The complex is called Park Villas, not Carriage Park, my mistake in earlier post. The monthly HOA is $690. Recent comp $380k. There is a pending originally listed at $445k. Mix of (2) 1 bedroom, (1) two bedroom, (1) three bedroom. With market rents, $600-700, $800-900, and $950-1050, respectively.
If financed 25% down, you run the number, can cashflow about $500-600 positive.
Terry
0 Reply
Maurice Smith
Member since 2018 · 211 posts · 164 votes
6y
man if you would have ignored all the negative and went for it 3 years ago and bought that 4 plex ... you would be in good shape right now. The market in las vegas 3 years ago isnt the same market that were in today. prices have defiantly got higher sence then , rents did to. my property gained 70k in value in 11 months and cash flows around $1000/ month . only regret i have was waiting until the ending of 2018 ( arguably the hottest time for appreciation in las vegas) to invest.
0 Reply
Terry Lao
Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
6y
@Maurice Smith
Good for you. I remember you bought 4plex in NW Las Vegas. Long term hold. 70k in less than a year is a good amount of appreciation. The percent increase is greater than bay area, and the risk is also less due to the outlay of cash.
You should plan your vacations in Las Vegas, and visit your 4plex. Thus, all expenses can be written off on taxes.
Terry
1 Reply
Maurice Smith
Member since 2018 · 211 posts · 164 votes
6y
Originally posted by @Terry Lao:
@David Beadles
Hindsight is 20/20. Time for a historical perspective if you had bought about 3 years ago, 4plex located at Carriage Park Villas. This is the 4plex that you mentioned in this post. I'm a good authority on this complex, off Maryland and Tropicana, as I bought in 2016.
I bought for 170k in Apr'16. Today (12/19) recent comps are 367k, 380k, and 375k. My net cashflow are about $800-900 per month.
Summary. A great purchase. Original tenants are still there. My thought was to fix up when tenants moved out, but they never did. Rents can be increased $200-300 to match market.
Terry

my boy terry!
0 Reply
Maurice Smith
Member since 2018 · 211 posts · 164 votes
6y
Originally posted by @Conrad Steinweg:
I'm glad the thread fired up again. Let's take Terry's example from Carriage Park. Wheelright dr area. He bought for 170K 3 years ago A few 4 plexes were/are for sale. Prices were 300K to 320. They were in the 220/240K range just 2.5 years ago. So Terry made large equity in just 6 months there, and a killing over the 3 years. Great for someone who bought then. With the example I analyzed, HOA was $1450/month or $17,400 annually. Rents are in the 650/800 range so lets say $2900 or 34.5K annually. opex 16K. Mortgage 25% down would be $1,130 ish or $13560. I'm a newbie but that looks like $-1000/month cashflow so you're relying completely on appreciation to make money, and you're trying to convince tenants to pay more, over $800. If the properties crashed in value, back to 170-200, that HOA would still kill it. Am I missing something? I have found 4plex HOAs for the 600-700 range.

show me were hoa fee is $1450 .. your trippen lol your numbers are inaccurate

0 Reply
Maurice Smith
Member since 2018 · 211 posts · 164 votes
6y
Originally posted by @Terry Lao:
@Maurice Smith
Good for you. I remember you bought 4plex in NW Las Vegas. Long term hold. 70k in less than a year is a good amount of appreciation. The percent increase is greater than bay area, and the risk is also less due to the outlay of cash.
You should plan your vacations in Las Vegas, and visit your 4plex. Thus, all expenses can be written off on taxes.
Terry

@Terry Lao
you already know it my boy! i had about 4 vegas trips within this last year all getting wrote off! bottle service and all lol
0 Reply
Terry Lao
Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
6y
@Maurice Smith
Obviously prices went up since you bought 11 months ago, to the tune of $70k for your 4plex.
Would you buy another 4plex or SFR in Las Vegas in this current market?
Terry
0 Reply
Maurice Smith
Member since 2018 · 211 posts · 164 votes
6y
Originally posted by @Terry Lao:
@Maurice Smith
Obviously prices went up since you bought 11 months ago, to the tune of $70k for your 4plex.
Would you buy another 4plex or SFR in Las Vegas in this current market?
Terry

@Terry Lao yes and no, but only in henderson. prices were on the rise when i was buying . prices are to high for me right now it wouldnt make sence to me at this current moment unless i could somehow find a off market distressed value add. or if rents went up a good amount to keep up with the prices. however i do believe with more big companies moving to souther Nevada, that is likey to happen over the next few years or so. how about you? any new investments ?

0 Reply
Conrad Steinweg
Member since 2019 · 8 posts · 1 vote
6y
Maurice - 2859 Wheelright drive. That's what the realtor told me. $1450. I would expect something in the 600 range.
I am a total newbie. Just starting so I wasn't even looking 3 years ago. Wish I had started this 20 years ago. What I can do well though is analyze numbers. I'm a data architect at a major insurance company. But, that can also work against me and keep me from acting when I should. lots to learn....
0 Reply
Terry Lao
Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
6y
It's actually $1415, split among $1085 monthly hoa, and 330 reserve.
0 Reply
Terry Lao
Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
6y
Also, it's only suppose to be for 1 year. It's also the lowest priced 4plex in all of Las Vegas.
0 Reply
Account Closed
Los Angeles, CA · Member since 2015 · 28 posts · 6 votes
6y
Conrad - what do you think of that deal on Wheelright drive ?
0 Reply
Conrad Steinweg
Member since 2019 · 8 posts · 1 vote
6y
Irene, Hi. I did my version of numbers. Just a note, i'm from Wisc, a newbie, and have friends there and been to LAS quite a bit. Wheelright is not the best section of town. I got the rents for the place. 75K down. 225K loan. property taxes of 1790. Insurance estimate 1200. Hopefully the god awful HOA does sewer, water, garbage, outside care. I estimated a small 2K per year for maintenance and capex set aside, and 2K (5%) for vacancy. That's means nothing for capex essentially. Rents are just under 2900. Total monthly expenses 3470. Now this is where an experienced person would know how to get it and raise rents with some fixups? I'd love to know how to make this work. I love 4-plexes when they work out.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.