Interested in Las Vegas , help me with areas to choose

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Interested in Las Vegas , help me with areas to choose

Account Closed
Los Angeles, CA · Member since 2015 · 28 posts · 6 votes

I am looking to invest in Las Vegas. Thinking of doing anything less than 4 plex. I read about Henderson area. Any other areas I should be looking at ? TIA

I eventually will need help in refs for kick *** real estate agent, property manager and contractor. TIA

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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
6y

Buy and hold SFR in Vegas. If I was single I'd buy Fourplexes as owner occupied every year. But I like that none fi my tenants share walls so I never get dragged in to tenant vs tenant battles.

For 5 years I’d buy one primary and one rental, then move and buy another primary and rental. I ended up with 15 in about 12 years and that was more than I needed. I didn’t want to be the biggest. I have more than I could ever need and work 4 hours during a busy month. It was such a simple “sacrifice” for such a short period of my life I try to tell everyone I meet how they could do it. The conversion rate is very very low. I don’t know if they don’t believe or simply don’t think they’re good enough. This includes family members that know I’ve done it. 

I never made much money working for a living. But I can’t imagine how much someone would have to pay me today to get me to show up to work 5 days a week on their schedule. I guarantee it’s more than they’d be willing to pay. 

Ps. I also bought a “rental” on lake Minnetonka in MN that I might turn in to a personal residence 1 day less than 1/2 the year in a couple years when it’s paid off. (Just a way to get people excited about starting to invest if they can see it as a way to own a dream home or in a dream location in the future.)

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  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    6y

    @Account Closed

    Very limited inventory for multi's (2-4) in Las Vegas, per Redfin, 56 available listing. Most are in bad areas, east and north Las Vegas. However, there are small pockets that are good. See below map, circle in yellow. 

    Closer to the strip, the better, will not have issues with renting. Spring Valley near Chinatown. East of 95, near Summerlin.

    2Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2015 · 28 posts · 6 votes
    6y

    Wow quite pricey those areas. I want to invest in a Stable, working class, up and coming neighborhood, preferably property with hidden values opportunities. But close to 500K is too much for me. I was thinking more in the range of 250 to 300K. 

    0Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    6y

    Those are stable, working class, blue collar neighborhoods. The rest are inner city working poor neighborhoods.

    I think You’re 5-10 years too late for “hidden value” especially from oos.  And trying to find up and coming neighborhoods in Vegas might be impossible. I’ve seen new neighborhoods built in the valley but in the last 20 years I don’t think a neighborhood has gone from bad to good. Most places I see that happen in other states is when old dilapidated housing is torn down or completely remodeled block by block. But our housing is mostly too new for that to be cost effective. 

    You’re basically saying, “Hey, can someone point out all the good deals all the other investors have overlooked for the last  bunch of years...”

    For those strategies I think you’ll be looking at the Midwest. They have more smaller homes built more than 50 years ago. Although I’ve seen people do it in expensive markets like Denver as well. (Usually “popping the top” adding a second level.)

    4Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2015 · 28 posts · 6 votes
    6y

    Thx . I appreciate your insight. Where are you currently investing?

    0Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    6y

    Buy and hold SFR in Vegas. If I was single I'd buy Fourplexes as owner occupied every year. But I like that none fi my tenants share walls so I never get dragged in to tenant vs tenant battles.

    For 5 years I’d buy one primary and one rental, then move and buy another primary and rental. I ended up with 15 in about 12 years and that was more than I needed. I didn’t want to be the biggest. I have more than I could ever need and work 4 hours during a busy month. It was such a simple “sacrifice” for such a short period of my life I try to tell everyone I meet how they could do it. The conversion rate is very very low. I don’t know if they don’t believe or simply don’t think they’re good enough. This includes family members that know I’ve done it. 

    I never made much money working for a living. But I can’t imagine how much someone would have to pay me today to get me to show up to work 5 days a week on their schedule. I guarantee it’s more than they’d be willing to pay. 

    Ps. I also bought a “rental” on lake Minnetonka in MN that I might turn in to a personal residence 1 day less than 1/2 the year in a couple years when it’s paid off. (Just a way to get people excited about starting to invest if they can see it as a way to own a dream home or in a dream location in the future.)

    7Reply
  • Robert AdamsBusiness Member
    Real Estate Broker · Henderson, NV · Member since 2009 · 1k+ posts · 373 votes
    6y

    you can also find distress multifam that needs rehab, new tenants at higher rents, the flip once fully occupied and rehabed.

    [email protected]702-349-9175
    The Adams Team at Rothwell Gornt Companies4.970 Reviews
    WebsiteView Page
    0Reply
  • Dan Mumm
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 107 posts · 57 votes
    6y

    Hi @Account Closed. Can you make your question more specific?

    There's always trade off for quality of location and percentage returns. What is your plan/strategy? Is this for a long term hold? If so, how long are you planning to hold? Is a premium location (A+ area like Summerlin, Green Valley, west Henderson, etc) important to you? Or are you looking to maximize return and willing to invest in C/D areas with high crime rates?

    I'm happy to answer any additional questions you might have and help you point in the right direction. 

    0Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2015 · 28 posts · 6 votes
    6y

    Thx for replying.

    I am looking for multifam ( <4) in an up and coming working class neighborhood. B and c. Max $300k. Not looking for major rehab beyond cosmetic upgrades. Not ruling out SFR too. Most importantly must cash flow. Coc close to 10%

    0Reply
  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    6y

    @Account Closed As Bill mentioned, the target properties and numbers you mentioned no longer exist in the current Vegas market. 

    1Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2015 · 28 posts · 6 votes
    6y

    Ok. Thanks. What numbers are you seeing then ?

    0Reply
  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    6y

    @Account Closed

    0Reply
  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    6y

    @Account Closed

    The lowest priced 4plex in Las Vegas is the one in red below at $280k. This is east LV, not good area. The majority of multi's is east and north las vegas. Multi's have very low inventory, about low 50's if you do search in Redfin. If your price range is 250-300k in good area, there is no such thing. 

    To give some perspective, duplexes top end is 280k in Spring Valley. The 4plex for $280k is two additional units, but issues will come with that.

    Terry

    1Reply
  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    6y

    @Account Closed

    Note. If you want to reply to specific person, use @????. If not, then you are just replying to general.

    Terry

    0Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2015 · 28 posts · 6 votes
    6y

    @Terry Lao thank you so much for the perspective. Not sure I can come up with downpayment for >500k property at this moment . Might have to look at other states. Do you have any suggestions? Thanks

    0Reply
  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    6y

    @Account Closed

    I'm in your exact situation, as live in Anaheim. However, I developed my game plan in 2013. I liked going to Las Vegas, but normally stayed on the strip and the casinos. I got tired of losing at the casinos, and decided to try something else. Once I ventured outside the strip, I discovered there's more to Las Vegas than gambling. So I tired real estate. I did a flip, bought and sold several 4plexs. I found 4plexs the best type of property to invest due to best cashflow, appreciation, and lenders consider 4plexs same as SFR. Through trial and error, discovered the best areas for 4plexs.

    Terry

    Suggestions.

    1. Put yourself in best situation for a loan. Pre-qualify yourself. Need to have 25% down and saved, need fico score 740 or higher, and W2 income. You can use the cashflow from rental agreements to help you qualify.

    2. 4plexs are very low inventory. Maybe 50-60 (multi's) on any MLS search. Location is very important. See below map for area that is a bit higher than your price range. I ran the numbers and can net around $600-700 per month, with raising rents to market. No vacancies taken into consideration due to no issue with renting, more demand than vacancies.

    3. see map below that is $360k in red, right behind MGM casino, off Maryland.

    4. I know so much about this area because I own 4plex in complex.

    3Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2015 · 28 posts · 6 votes
    6y

    @Terry Lao. I have already gotten preapproved. 
    360k is doable. I really appreciate your help. What is that area called? 
    Can you share or recommend a kickass realtor ? Thx

    0Reply
  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    6y

    @Account Closed

    @Bill B.

    Area is called Parkway Villas. Bill can attest to the area, as he has mentioned complex several times that he liked.

    https://www.redfin.com/NV/Las-...

    1Reply
  • Account Closed
    OP
    Los Angeles, CA · Member since 2015 · 28 posts · 6 votes
    6y

    @terry lao

    @Terry Lao

    Yes i found it. Its on Paradise. This is my firsf time so i m not sure how to proceed. Do i just contact them directly or do i need to hire a realtor first?

    0Reply
  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    6y

    @Irene

    0Reply
  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    6y

    @Account Closed

    I sent you a private message. Can answer your questions more in detail.

    Terry

    0Reply
  • Robert Babbage
    Rental Property Investor · Tokyo / Taipei / Kentucky / Nevada · Member since 2018 · 2 posts · 1 vote
    6y

    Feel free to PM me as well as I also own in that neighborhood and can walk you through some of the positives and negatives. My agent also manages there and has dealt with many of the oddities and idiosyncrasies of the neighborhood. 

    1Reply
  • Frank H
    Las Vegas, NV · Member since 2012 · 24 posts · 3 votes
    6y

    Hi everyone

    Great to see the responses from everyone and your feedbacks. I am also looking to invest in RE in Las Vegas. I've been focusing my search on SFH but all your inputs have opened my mind to multi family.

    I currently own a home but I’m concerned about not being able to qualify for loan on investment property, due to loan on my current home. Does anyone have any insights on how to get around this?

    Much appreciated !

    Frank

    0Reply
  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    6y

    @Frank H

    Loan considered conventional if 2-4 units. Normally 25% down. Can use rental income from units to help qualify for loan. Just provide lease or rental agreement. For example, 4plex, fully occupied at $800 per month each unit, can use 4x800=3200 towards debt ratios. Could be 3200 x.75, as .25 is calculated for expenses.

    Terry

    0Reply
  • Dan Nim
    Member since 2019 · 13 posts · 2 votes
    6y

    @Terry Lao do you use a property manager and who would you recommend? In your spreadsheet above for your property example, what is the room makeup and rent breakdown per unit. is your 4plex in the Parkway Villas as well? In your Redfin link (https://www.redfin.com/NV/Las-...)the total rents for that listing is approximately 2535/month. TIA

    0Reply
  • Terry Lao
    Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    6y

    @Dan Nim

    I manage myself from out of state. This is not that difficult. However, must have certain things in place, like home warranty, appliance contact, and handyman contact. Having those (3) items in place should take care of 90% of issues. In my experience, the number one thing that I get phone calls for is AC in summer and heater in winter. However, the home warranty will cover AC and heater. Managing yourself will save at least 8%. My 4plex in Park Villas, and all units in complex are a mix of (1) 3 bed/2ba, (1) 2bed/2ba, and (2) 1bed/1ba. My rents are $750, 700, 600, and 585, respectively. Link needs to be updated. Market is 950-1100, 850-950, and 700.

    Terry

    4Reply
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