All Forum Posts by: Robert Hsiao

I am trying to put together a cash flow projection, and hope to get some info on Vegas area property management rate.

Will Vegas area management company take just one property at $800 rent per month (using the example I have been using)?  If so, what would be the fee?  Or is there a minimum aggregate rent for it to a worthy relationship? 

I ask because applying what I pay now to my local management company that would be somewhat of a small net amount.

Side track a bit -

I hear this reference to "C area", "D area", "B- area" etc., I can guess the concept, but I have never heard of this ranking system.  Is this particular to Las Vegas?  And what is the definition for each grade?

8.6% is superb return.  Even 5% is very good for me. 

Yes you are correct; some are asking $95K.  I rounded up just for ease of calculating, and even at that slightly inflated base the return is over 9% pre-property tax, which is much higher than the 2-3% pre-property tax yield around SF.

Which begs the question: Why aren't more investors jumping on these?  Why do these properties sit on the market?  Renters may not be calculating or don't want to commit to a place, but investors around the country should be very acute about profit opportunities...

I think we need to know a little more to give advice, right?  Like how much $ is a little money, what city Adam intends to buy in, is there continuous income to pay mortgage, etc.

If I have to comment in general (as a fellow investor), especially for young people starting out, first consideration is affordability.  Save up enough for down payment, then select a growth area, and buy something within means.

From interior pictures the property is in good shape; and from Google street view the neighborhood also looks quite good to me...  At least I don't mind living there myself.

So why wouldn't a condo owner in SF sell the condo there, buy 10 of these Vegas condos, and triple the rental income?

One of the $100K samples I got sits in the "South Shore" neighborhood, intersection of North Buffalo and West Lake Mead.  Is that a D neighborhood?

I am just thinking, even if renters have their reasons for not wanting to buy, if all numbers are correct, wouldn't investors from around the country jump on these properties, thus pushing the prices up and yield down?

A friend of mine recently bought in Las Vegas. He sent over some zillow pages where condos with $800-$900 current rent are asking around $100K. This is yielding about 9%! Even with $170-$200 HOA this seems too good to be true. If I were a renter, why would I pay $800 to rent a condo which, if I buy and fully finance, the monthly mortgage payment is only $600?

Can pros educate me on what I am missing?

Links available if not against any policy; but examples are easily found.