All Forum Posts by: Account Closed

@Michael Wagner So cool to read about these types of investment successes on this site. Bravo!

@Swapnil Shrivastava and @Joseph Vu my husband and I do exactly what @Nathan Gesner recommends. We are investment property specialists in the Las Vegas and Henderson area. My husband is an investment focused real estate agent and I'm a residential property manger. We've been helping investors purchase rental properties in Las Vegas and Henderson (ourselves included) since 2010. Here is an example of a house currently listed on our local MLS (our primary source of listings). It's tenant occupied (tenant wants to stay and is paying rent) and we have an appointment to view it on Monday, May 10th. Tenant is paying $1,495/mo but market rent is closer to $1700/mo. The house is listed for $364,900 but target purchase price would be closer to $340k -$350k as the house has been on the market for over a year (tenant occupied properties aren't currently selling as quickly as primary buyer properties). Run your numbers and see if this type of scenario meets your ROI target. The Vegas/Henderson market is really active with primary buyers right now so finding a tenant occupied property in your target area will be key.

Target purchase price $340k-$350k + current rent rate $1,495 (market rent $1,700). Other details: est. taxes – $153/mo (use this link to determine tax amount for any property in Vegas) + Insurance – $45/mo + HOA – $75/mo + management fee is typically 7-8% of monthly rent

Hope you find this info help.

@Yohannes Afework I believe there will be higher levels of inventory later this year but I don't expect prices to fall much. There is too much demand.

@Ben Morand following

@Joe Splitrock. I agree with your post. Here are some additional factors I'm seeing in our local residential market impacting supply and demand:

1) investors swarmed our market from 2010-2017. Almost half of detached single family homes are owned by cash investors and these rentals houses are occupied by Tenants.
2) There is a Governor mandated eviction moratorium through May 31st, 2021. Landlords cannot serve evictions notices to get Tenants out which is limiting our housing supply. This has been extended multiple times and there are concerns it may be extended again
3) The governor has also limited landlords from serving 30 day “no cause” notices to vacate. Landlords are having a hard time gaining control of their properties which is limiting supply
4) Some homeowner’s are terrified of COVID and would have wanted to sell but don’t want strangers entering their house (limiting supply)
5) As a real estate broker and property manager many houses are being sold and rented to people moving here from out of state for remote work or other reasons. We have a tremendous increase in demand
6) Shannon Chambers, president of Home Means Nevada, a state-affiliated nonprofit organization that assists homeowners, estimated that more than 8 percent of mortgage loans in the state are in forbearance, which she said is upwards of 100,000 loans. Just an interesting fact. I don't believe they will become foreclosures.
7) CA residents are coming to Nevada for the low cost living, no state income tax and other reasons…this is pushing up demand.

The one percent rule is a guideline frequently referenced by real estate investors when evaluating potential property purchases. This rule of thumb states that the monthly rent should be equal to or greater than one percent of the total purchase price of an investment property.

Are there any markets in the US that meet the 1% rule for detached single family residences in class A and B neighborhoods? Might be unrealistic given the current real estate market...curious to know. Vegas was true to this formula back in 2011 + 2012. You could purchase a house in Green Valley, Henderson (neighboring city of Las Vegas) for $130k and rent it for $1,300.

So fascinating to watch real estate cycles over time.

@Sang Yi you may find the above post interesting. It provides some real world data on Vegas housing and thoughts about the real estate market in general from a Harvard industry fellow. I know SFRs aren't your target purchase but I just helped an investor purchase a single family home in Summerlin 89144. List price was $419k. Accepted offer was cash and $30k. Seller received 27 offers in less than a week. Just crazy the dynamics between supply and demand right now in our local market. 

Hi @Sang Yi, I'm a property manager in Vegas and manage detached single family residences and most of my owners are insured with SafeCo, State Farm and MetLife. I'm also an investor of detached SFRs in Vegas and personally insured with State Farm.

I've found a knowledgeable insurance broker (www.nvcapitalinsurance.com) who provided me the following info:

• MetLife – great for up to 1-7 mid-to-high value properties. Umbrella offered up to $5 million. LLC ok, and duplex/fourplex. Not so good on condos, will not offer coverage for Airbnb, or owners with 7+ properties. (Does offer add'l insured to property manager endorsement).

• Guard – unlimited number of properties up to $1.3 million in value, high value rental condos ok, up to $10 million umbrella-standalone, Airbnb coverage offered, LLC ok. (Does offer add'l insured to property manager endorsement).

• American Modern – specialize in 10+ properties, high value rentals up to $5 million, LLC ok, multi-condo, Airbnb endorsement, and older homes. (Does offer add'l insured to property manager endorsement).

• Safeco – up to 16 properties, up to $1 million, great for high value condo, has Airbnb endorsement, LLC ok. (Does offer add'l insured to property manager endorsement).

Hope you find this info helpful! Cheers, Heidi

Here is an article by Don Layton: Senior Industry Fellow at Joint Center for Housing Studies of Harvard University: "The extraordinary and unexpected pandemic increase in house prices: causes and implications" Click here to read the article: Harvard University

It's a fascinating read for anyone trying to understand our current residential real estate environment and why some markets are seeing crazy appreciation during the first 4 months of 2021. As a residential real estate investor since 2001 this current real estate market makes my head hurt because it makes no sense. This articles helps explain it a bit...

@Rafal Soltysek. I'd be cautious right now. Vegas prices just increased about 20% in 4 months. That's not normal. I don't know where our residential housing market will be in 18-24 months. It's a guessing game for everyone but one I'm watching it closely. As others always say every market offers an investable moment it's just important to be aware of current and historical data.