How is the Vegas market for SFR, MF or AirBnB Investments?

Question

How's it going all.  I currently live in Southern California in the Long Beach area and am looking to do my 1st Buy and Hold investment out of state.  Ideally I'd like to do it in my own area, but the prices and cap rates warrant me looking in other cities/states where my ROI and Cap rates will be better.

I haven't gone all out and really dissected a lot of states to potentially invest in, but since Vegas is close, rated #1 for growth as per Realtor.com and now has 2 professional sports teams, I figure the upside is still in tact.

I'm looking for guidance on what zip codes I should focus on for SFR and MF either for the BRRRR strategy or turnkey for cashflow.  I'd also be interested to connect with investors who have units (SFR, Condos, Apts, etc) near the strip or otherwise that have gone the AirBnB route, and how feasible a motto this is.

Are the prices in Vegas still good enough to provide good ROI and risk vs reward?  Are there other states I should focus on more?

James Clifford · Answer

@Garan Kama take a look at this page when considering STR and Airbnb in Vegas: http://www.clarkcountynv.gov/administrative-servic...

Clark County (where most of the strip is) is outside of the actual city of Las Vegas and transient occupancy of residentially zoned properties has been illegal since the 90's. The City of Las Vegas does allow STR in residential zones but there are hoops to jump through. Hope this helps with your decision, good luck!

Michael Robbins · Answer

@Noam Ofan Single family detached 3 bedroom 1500 sf $290-300 @ Inspirada.  That is on the high side, as the Inspirada homes are newer and would not need any work done. The anticipated appreciation is the main driver in a rental-purchase-hold there.  The Inspirada area (Henderson) is where all the new development is for the City of Henderson.  There is the Raiders practice facility, Costco, new shopping centers,etc.. and extension of Las Vegas Blvd going up nearby..

Noam Ofan · Answer

@Michael Robbins, the areas you say you like - Silverado Ranch, Anthem, Sun City Anthem, and Inspirada - what does a 1500 sf single family fixer go for in these areas right now?

Michael Robbins · Answer

@Sharon H. Silverado Ranch rentals lease like hotcakes.  The single family 3 bedrooms, 1500 sf rent between $1450-1600 and the townhomes/Condos run about the same $1 sf.  I would opt for the single family homes though.  The rental market is still hot in Vegas but there are many hundreds of luxury apartments coming online over the next 0-3 years.  In my opinion  the agressive apartment building will eventually catch up to the demand and single family homes would be the safer bet.  I like the single family fixers for rentals.  I like Silverado Ranch, Anthem, Sun City Anthem, and Inspirada.  Inspirada are newer homes but they have little maintenance expense and the amenities are awesome.

Sharon H. · Answer

@Michael Robbins What do you about the rent for a typical 3 bed 2 bath house in Siverado Ranch area? I was told the area is good for investment properties since it is close to the Strip and the stadium and the community is relatively newer than Henderson.

Michael Robbins · Answer

In my opinion 3 bed vs 2 bed demand has more to do with the mix supply in your subject properties area. All else being equal I like to focus on the popularity of a floor plan.

Michael Robbins · Answer

@Sharon H. it really depends on the particular subdivision. I have had Apartments and Condos go for $1+ per sq in Henderson. But again one condo may be going for under $1 but across the road (maybe due to newer construction, better amenities , etc...) a similar one will rent $1++. In short it is possible but I would need to know the particulars.

Sharon H. · Answer

@Michael Robbins Can a 2 bed 2 bath condo generate a $1500 rent? My agent told me 2 bed 2 bath usually generate $1,000 rent, and 3 bed 2 bath 1500 sq generate $1,500 rent. Properties in Summerlin generate a bit higher rent.

Noam Ofan · Answer

Thanks @Michael Robbins

Terry Lao · Answer

@Garan Kama

Here are the latest sales and median home price from GLVAR.

http://www.lasvegasrealtor.com/southern-nevada-hom...

Terry

How is the Vegas market for SFR, MF or AirBnB Investments?

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