Single-family residence buy & hold investment in Las Vegas.
Purchase price: $106,200
Cash invested: $32,200
3/2 Condo in Mountainside Condominiums
What made you interested in investing in this type of deal?
It would cash flow with a small investment down
How did you find this deal and how did you negotiate it?
MLS, lots of reviewing each week.
How did you finance this deal?
Heloc for the down payment, conventional financing for the rest
How did you add value to the deal?
I didn't add value. I still have a lot to learn on rehabbing and BRRR.
Lessons learned? Challenges?
- Follow through on inspections. Take the time to look into issues found by the initial visual inspection.
- Try to get confirmation that the condo is financeable before you pay for appraisals, inspections, etc. If too many units are non-owner occupied, you won't get financing. Greater than 45% non-owner occupied is the limit I believe.
- Know what the true rents are. I've found that sites that give you this can overestimate market rent a bit. Check with Realtors and Property Managers
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Andrea Madsen, Keller Williams Realty in Las Vegas
Congrats @Shane Means , tell us about the numbers. What's the monthly rent, expenses, etc.? Do you anticipate a lot of appreciation?
Hi @Joe P. ,
I don't expect a lot of appreciation on this property. Its high was 162,000 in 2005 but I think it will take a while to get near that again. I'm really just trying to get some momentum going without going out of pocket each month. I have to start somewhere ;-)
OpEx: $428 (property tax, insurance, property manager, vacancy rate, repairs)
When do you think you are doing your next deal?
@Shane Means break down the $428...how much is tax, how much is insurance, how much everywhere else?
Reason I ask is my property in NJ is similar in price point and dollars invested. Rent is $1900 a month but the costs on this property are much higher -- its NJ, so high taxes, and also flood insurance.
My PITI is $925 a month, and I'm setting aside $532 a month (split between CAPEX, vacancy, and maintenance...and I'm over budget for the year on both CAPEX/maintenance). After other expenses like utilities and city costs, I'm cash flowing $180.
You might want to look into your CAPEX/maintenance numbers and make sure they make sense. A $100,000 property roof is roughly the same cost as a $200,000 property. A fridge costs the same amount. A new toilet costs the same amount. A sewer line needing to be expelled costs the same amount. And the latter 3 all happened to me in the first 5 months of owning the property. :)
Hi @Joe P. , for the 428, actually it's 443, it breaks down as follows:
- Property Tax: $33
- Insurance: $35
- Repairs: $75
- HOA: $177
- Property Manager: $123
I have CapEx split out separately and I don't have a lot slotted for it ($50 a month). This is obviously low but its a condo. No roof, no external repairs. I'll see what the actual expenditure is as I go. I'm definitely cutting it close to break even.
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