1st timer, eyeing down Las Vegas area

[Jason Molina]

I am not totally sure if I am set in stone regarding this strategy in Las Vegas, however I did pinpoint this city and area as I frequently visit from California multiple times per year. 

I genuinely enjoy my time in Las Vegas and at this point, I believe its time for me and my brother (investing partner) to consider buying a property in the LV area. 

We are considering the mid term rental strategy in this area given there are multiple hospitals, military personnel, and the continuous growth in construction. 

We are a little apprehensive regarding this strategy as there is limited information available regarding the strategy and the area. We will also not be ready till summer of 2024.

I also want to ensure this property is not marketed as an STR as I am sure it gets very complicated in this area.

What are some major considerations when looking into this strategy in the Las Vegas area? I understand needing to be near hospitals and universities, however what are some additional thoughts I should be having? 

[Joey Banasihan]

@Jason Molina, welcome! I am located in the Boise area but I would suggest starting with purchasing the "30 Day Stay Medium Term Rental" book to start off. This is provide a great foundation for the MTR strategy, regardless of where you decided to do it. But the thing I will say is that besides analyzing a deal and running numbers, the most important part is taking action and pairing with a great investor friendly agent.  Happy to get more into detail around utilizing platforms such as Furnish Finder, and more, but I believe the book will give you the best foundation. Then from there you can revisit the forums to ask or seek more specific questions as needed.  Good luck, you got this!

[Joey Banasihan]

@Jason Molina, welcome! I am located in the Boise area but I would suggest starting with purchasing the "30 Day Stay Medium Term Rental" book to start off. This is provide a great foundation for the MTR strategy, regardless of where you decided to do it. But the thing I will say is that besides analyzing a deal and running numbers, the most important part is taking action and pairing with a great investor friendly agent.  Happy to get more into detail around utilizing platforms such as Furnish Finder, and more, but I believe the book will give you the best foundation. Then from there you can revisit the forums to ask or seek more specific questions as needed.  Good luck, you got this!

[Mason Weiss]

If you wait until every piece of information is available, then you are to late on the opportunity. You already have the knowledge now put it into practice.

[Stephen DeThample]

Mid Term rentals should be done with nicer finishes.  The traveling nurse market has high income and they do not want to live in a property that is beat up or in a "bad" area.  I see these mistakes often.

Good Luck!

[Zachary Deal]

I would do more research on job market to see what other types of industries you may want to target. The number of tech, engineering, and consulting jobs in Los Vegas area could be helpful. Also the number of extended stay hotels may give you a good idea of the potential market size 

[Eric Fernwood]

Hello @Jason Molina,

Las Vegas is an excellent rental investment location. The short version of why I say this:

• Las Vegas is running out of land. The amount of privately owned undeveloped land in the Las Vegas Valley is less than 20,000 acres. The annual consumption rate is about 4,000 acres. Due to high land costs, new homes in our target areas start at $550,000. Our target investment property price range is $320,000 to $475,000, so new construction does not add to the housing supply for our target segment.
• Las Vegas has attracted and continues to attract significant business investments. This creates large numbers of jobs. At the last job fair there were over 20,000 open positions with an average annual wage of $65,000. This is the segment that contains the most reliable tenants that we target. Jobs attract people. Las Vegas's annual population growth is between 2% and 3%.

The combination of an almost fixed supply of properties and a continually increasing population almost guarantees that prices and rents will rise.

Mid-Term Rentals

Unlike short-term rentals which are primarily occupied by vacationers, mid-term rentals are primarily occupied for business purposes. For example, traveling nurses. Also, the need for mid-term rentals for some segments is independent of the economic situation. Additionally, mid-term rentals are unlikely to violate county, city, and most association rules and regulations because they are rented for a minimum of 30 days.

Target a Single Segment

There are potentially many different segments you could target. However, our experience is that it is best to focus on a single segment. The segment that is of particular interest to us and our clients is traveling nurses. Research indicates that travel nurses typically receive an initial 13-week contract and often receive extensions. In addition, traveling nurses are usually single and between the ages of 20 and 30. Therefore, smaller and lower-cost properties are likely the best option.

Location

Another important consideration is the proximity to hospitals that employ significant numbers of traveling nurses. There are two hospitals in Las Vegas that meet this requirement, and they are about 15 minutes apart. Buying a property between these hospitals will attract nurses who work at either hospital.

Management

The majority of our clients are remote investors. So, we worked with a management company that would handle midterm rentals at an affordable price.

Markets Change

Our recommendation is to purchase a property that would be suitable for both long-term and mid-term rentals. This approach provides a fallback position in case the market changes.

We did a detailed study on mid-term rentals in Las Vegas a couple of months ago. If you (or anyone) are interested in a copy, DM me.

Jason, I hope this helps.

[Allen Duan]

Hey Jason, we're managing a MTR in Spring Valley. It's only been a couple months and we just got our first booking, so I can't say too much about the specific market yet. We do manage 20+ MTRs in Los Angeles so I can speak to MTRs overall.

If you've done your underwriting and feel pretty confident in the demand and MTR numbers, I'd say you have enough info to move forward. All the other details, like furnishing, listing platforms, etc can be figured out as you go. I agree with Mason, at some point you have to jump in and that's when the real learning starts =)

I don't agree with Stephen necessarily since there are travel nurses who travel with more limited budgets. We see if often in LA. But setting up a place with great design and professional photos, even if it's a more affordable home, is a must so you can stand out among the competition.

Don't forget medical professionals aren't the only type of MTR tenant. There are so many: insurance placements for larger homes, families moving to the area, people in town visiting family, home renovations, other professionals traveling for business, college interns in the summer, and more.