All Forum Posts by: Phillip Dwyer

@Terry Lao the data source I used was pulled from LVR numbers. I was only quoting resale SFR numbers, so the median would be lower than the $319k you mentioned. The median for March was at $315,000, and April was $305,300. On a price per foot basis March was $171/SF and April was $172/SF. For trends I like to use the price per square foot, because it is not impacted as much by price segment issues that happen like the jumbo loan market freezing up for a few weeks.

The mortgage lenders have been slammed with refis, so that likely has impacted closing times some.  Interestingly though, the average days on market went down to 36 days in April from March's 46 days.  

@Mary Jay I think there are several factors at play here.  First, a decent portion of those closings were from contracts written 45-60 days prior.  Most transactions close in around 30 days when things are running normally.  Second, supply is still constrained overall, so even if demand fell some, supply has not increased to the point of impacting pricing yet.  Third, there are still plenty of people that are employed, have savings, and are in a position to buy property.  Not all businesses have been impacted negatively.  

Our May rent collection numbers are good so far.  Waiting on few late pays, but looks like 97.5% of units will have full rent collected within a day or two.  

April numbers are out.  Things aren't too bad yet.  Median sales prices staying about the same for resale sfr product.  The number of transactions went way down, but the pricing did not.  This is both on a gross price and price by square foot basis.  

@Jordan Murrell. Have you thought about a 2-4 unit property? You could buy it with a FHA loan with as little as 3.5% down payment.

@Bill B. Several years ago (maybe 10 or so) I attended an economic/development event somewhere near downtown Vegas.  During the event, the speaker presented a stat that I found crazy at the time:  something like only 3% of the Nevada population at that time was actually born in Nevada.  I don't know what the current numbers are, but I'm guessing it's still surprising.

@Cris Normandt Welcome to BP!  Are you planning to target condos in Vegas too?  

@Tom Kastorff I suppose it's like when you are buying a new car.  Once you have your sights set on the model, you see them everywhere.  

@Tom Kastorff I think you're misreading the Vegas market.  The median sales price of resale property is just barely over $300k.  The bulk of homes are in the mid $200k to high $400k range.  The price points and people you're referring too make up a smaller percentage of the people and property.  So the listings I mentioned are more reflective of what's going on here than what you suggest.  

Additionally, most investors haven't been buying in the price points you mention.

A few things to consider for Vegas include the following:

1.  Financing available for town homes versus condo units

2. HOA fees. In some of those developments the HOA fees are really high compared to other developments

3. Financials of the HOA. Make sure the HOA has plenty of reserves

4.  Rental Restrictions.  Some town home and condo communities have restrictions on rentals.  Read the resale packages thoroughly.

Otherwise, I like your strategy.  The rents will likely be higher per door than an individual 4plex unit, plus your property will be easier to sell down the line than a 4plex (larger buyer pool).  Plus so many of the 4plexes are in HOAs anyway.

What price point have you been targeting?