All Forum Posts by: Ken Graham

LAS VEGAS – PROPOSED ORDINANCE AFFECTS STRs

The city of Las Vegas, Nevada has proposed significant changes to the Short Term Rental (STR) ordinance. Some of the changes would make it difficult or impossible to operate certain STRs within the city.

The most troubling changes include:

* Requiring an ON SITE manager, PRESENT AT ALL TIMES during a STR, for any property with more than 5 bedrooms. (This is not practical or economically viable)

* Maximum occupancy of 2 PERSONS PER BEDROOM. This includes day time hours and would essentially outlaw even small meetings or gatherings like a small birthday party in an STR

We vigorously oppose these 2 requirements and intend to fight these proposed changes.

Other more reasonable changes include:

* Requiring $500,000 minimum liability insurance

* Mandating that your valid business license # be included in every online listing (AirBNB, VRBO etc).

Any Las Vegas property owners who disagree with this proposal are invited to contact me. We intend to form an alliance to fight for and defend our property rights. The only way to defeat these proposals is with organization and cooperation. Its much easier to stop this proposal now before its enacted into law.

Message me if you’d like to get involved to stop this.

Combining the BRRRR strategy with STR is an interesting concept and something I have explored.

I think a big challenge is fining a lender who will refinance a STR. Most traditional lenders don't offer this type of product.

This is a concept I have also explored.

There are several large property management companies than manage 100's of vacation rental properties. From my research, they vary on how well they perform but from a management standpoint it can be accomplished.

One of the biggest concerns would be over saturating a specific market with too much inventory. That would definitely disrupt the market and depress rates.

Also don't underestimate the amount of resources and management involved. Its essentially like running 100's of mini-hotels scattered across multiple locations. 

Yes- if you invite him in he definitely can cite you for any violations that he finds. 

Regarding the Airbnb issue, do you know the regulations in your area? 

Personally I would consult with a local RE attorney before the inspection.

@Brent Seehusen, regarding the 2 books you suggested I am very curious about them. I also noticed that they were both published prior to the 2008 crash. If someone used the methods suggested in these books would they have time the market correctly?

 Phil Dwyer who just responded is an experience agent/ property manager and a good guy. He runs a local Real Estate Meet up group and I would definitely contact him for property management in Henderson.

I am also looking to connect with any wholesalers in Las Vegas / Henderson. Please reach out to me with any deals you have.

There is a gentleman who runs regular meet up groups in Vegas regarding Tax Deed investing. I have not attended his group yet but the next meeting Is Sep 23 and I will probably attend. Search meetup.com for the specifics.

One more thing that  just struck me. i have owned several businesses but have no inside knowledge about dry cleaning. However I do know that industry uses dangerous and environmentally problematic chemicals.

I would be VERY concerned with inheriting an expensive environmental liability problem created by  the previous ownership.

If I were buying this kind of business its something I would investigate carefully and probably have an outside expert involved.

These are some things I would want to know.

* What is the net income and what is the recent trend over last 3-4 years? Will the profit be sufficient to pay down the debt and provide enough income for the buyer?

* Will the seller be available for consulting/ training during the transition?

* Will the seller sign a non-compete?

* Who are the key employees / management and will they be staying on? Are they under contract?

* What is the competitive landscape like? Who are the key competitors? What are their strengths and weaknesses?

* Are there any significant customers? Would they stay on if the business is sold?

* What sort of property leases are in place?