Las Vegas real estate

[greg80]

I see masses of houses being sold for ridiculious low amount of money (at least comparing to EU prices). I am guessing there is way, way too much realestate and it's not worth to invest there, since the prices will not go up in decades with so much realestate on the market?

If you buy a house and rent it out, would you make any money, or is rental market way down as well?

[djroof]

prices?????????????

[greg80]

Originally Posted by djroof

prices?????????????

I can see very nice houses for sale for around 150k. That's just over 100k euros and that's nothing.

[lazycash]

Originally Posted by greg80

I see masses of houses being sold for ridiculious low amount of money (at least comparing to EU prices). I am guessing there is way, way too much realestate and it's not worth to invest there, since the prices will not go up in decades with so much realestate on the market?

If you buy a house and rent it out, would you make any money, or is rental market way down as well?

There's definitely money to be made flipping in Vegas, but there's a lot of competition doing the same thing. The rental market is strong, all those short sale/foreclosure owners have to move somewhere and most rent.

[L-Pink]

Out of state/country means you will need a management co. There goes 15 to 30 percent of monthly income. Another concern would be how much repair money is needed after each tenant leaves.

You are also gambling on the amount of appreciation if any over the next x amount of years.

Just pointing out a few negatives.

.

[lazycash]

Originally Posted by L-Pink

Out of state/country means you will need a management co. There goes 15 to 30 percent of monthly income. Another concern would be how much repair money is needed after each tenant leaves.

You are also gambling on the amount of appreciation if any over the next x amount of years.

Just pointing out a few negatives.

.

He should be able to get long term property management for 10% of the monthly rent charged. I agree, any excess damage, tenant payment issues etc... could eat away the few hundred you'd be clearing each month in profit. Depending on the amount you'd put down, if you were able to swipe a foreclosure that needed little clean up, you could clear a few hundred each month between your mortgage and rent and not have to rely on the property appreciating to earn a profit from it. Problem is the local investors/flippers that have cash are swooping up the best deals quickly, very hard for someone living out of state to get in on the action without being there.

[Redrob]

The real problem with Vegas is the lack of water resources in my opinion. Look at the many dead lawns and watering restrictions.

[L-Pink]

Originally Posted by lazycash

He should be able to get long term property management for 10% of the monthly rent charged. I agree, any excess damage, tenant payment issues etc... could eat away the few hundred you'd be clearing each month in profit. Depending on the amount you'd put down, if you were able to swipe a foreclosure that needed little clean up, you could clear a few hundred each month between your mortgage and rent and not have to rely on the property appreciating to earn a profit from it. Problem is the local investors/flippers that have cash are swooping up the best deals quickly, very hard for someone living out of state to get in on the action without being there.

10% will get you a leasing company. A management company that will take care of routine plumbing problems, HVAC maintenance, etc will usually cost more. At least that's how it is where I have lived.

.

[BareBacked]

Dont do it.

Place is going to keep going down for many years to come

[lazycash]

Originally Posted by L-Pink

10% will get you a leasing company. A management company that will take care of routine plumbing problems, HVAC maintenance, etc will usually cost more. At least that's how it is where I have lived.

.

10% is the standard rate for property management in Vegas. They will market, process and approve the tenant, collect rent, field all complaints, work with contractors to fix any issues and pass along excess maintenance costs that arise to the owner. You're right that excess maintenance costs could eat up a chunk of the profits, but many of these foreclosure/short sale deals in Vegas are for houses under 5 yrs old, so the likelihood of major work being needed is rare.

[Rochard]

Originally Posted by Redrob

The real problem with Vegas is the lack of water resources in my opinion. Look at the many dead lawns and watering restrictions.

This is going to become a huge problem for a lot of areas - Water. Vegas, LA, Atlanta to name a few off the top of my head.

[L-Pink]

Originally Posted by lazycash

10% is the standard rate for property management in Vegas. They will market, process and approve the tenant, collect rent, field all complaints, work with contractors to fix any issues and pass along excess maintenance costs that arise to the owner. You're right that excess maintenance costs could eat up a chunk of the profits, but many of these foreclosure/short sale deals in Vegas are for houses under 5 yrs old, so the likelihood of major work being needed is rare.

Wow, thats cheap. (maybe I was just getting fucked )

.

[lazycash]

Originally Posted by L-Pink

Wow, thats cheap. (maybe I was just getting fucked )

.

Now if you're talking a short term vacation rental property, then the % will be much higher to manage.

[BareBacked]

Originally Posted by lazycash

10% is the standard rate for property management in Vegas. They will market, process and approve the tenant, collect rent, field all complaints, work with contractors to fix any issues and pass along excess maintenance costs that arise to the owner. You're right that excess maintenance costs could eat up a chunk of the profits, but many of these foreclosure/short sale deals in Vegas are for houses under 5 yrs old, so the likelihood of major work being needed is rare.

They also love to just fix any and everything that the tenants complain about.
Finding a good one ESPECIALLY in vegas is hard.

Good luck

[fuzebox]

I pay my management company 10% plus $350 per new tenant (advertising, screening, credit check, etc). Repairs are extra obviously and come out of rent before they pay me (the management company collects and then pays me via direct deposit on the 3rd week of the month).

It will definitely be a while before real estate values go up, but in the meantime I think it's a strong rental market. A lot of the people foreclosing are just renting in the same neighborhood.

[Lamis]

The sub-prime crisis is still intact...

people who got a loan for homes they cannot afford to pay... The classic american dream of the '50s is no longer possible in the 2010 scenario.

I saw "WALL STREET 2" yesterday where they explain pretty good the US situation... Very good movie btw.

[NALEM]

Originally Posted by lazycash

He should be able to get long term property management for 10% of the monthly rent charged. I agree, any excess damage, tenant payment issues etc... could eat away the few hundred you'd be clearing each month in profit. Depending on the amount you'd put down, if you were able to swipe a foreclosure that needed little clean up, you could clear a few hundred each month between your mortgage and rent and not have to rely on the property appreciating to earn a profit from it. Problem is the local investors/flippers that have cash are swooping up the best deals quickly, very hard for someone living out of state to get in on the action without being there.

I agree with LazyCash on this, but I follow a strict strategy on dealing with renters.
I prescreen the renters and will wait it out till I find one that feels right. Second, I dont discount rent, but will give the 12th month free, if all the monthly payments have been made on time.

In the distant past, when I rented out the first condo I ever owned, I actually structured, the contract as a Roommate Agreement, which recognized me as a fellow roommate/occupant, giving me access to walk into the property whenever I wanted.

Key is finding a great management company.

[BigRod]

A number of my friends and business associates have purchased homes in Las Vegas and have the original owners renting the homes from the new owners.

The average home in Vancouver is about 750/900k you can buy a whole neighbourhood in Las Vegas for that

I was thinking about moving to San Jose myself. Apparently the housing market crashed every where in the US except San Jose, the housing prices are surprisingly close to Vancouver.

[Mutt]

Show me some samples of killer deals on Las Vegas homes. I just did an MLS search for Vegas homes for sale between 4-500K and I wasn't impressed with anything I saw.

I'm told over and over if you have CASH, you can get some real bargains in cities hit hard.

[ajrocks]

It will take 10 years before house prices to anything in Vegas.

[magicmike]

I looked on MLS, pretty cheap in my opinion on some deals. When the economy comes back so will Vegas, but when is that going to happen?

[Si]

How is Gran Canaria for living?

Was looking at some sites just browsing and it looks like a great place to live.

[BareBacked]

Originally Posted by ajrocks

It will take 10 years before house prices to anything in Vegas.

I agree with you. Why I hold on to the place I have there I do not know .

[Kenny B!]

Speak to fuzebox he is doing exactly what you are talking about in Vegas.

I've picked up a few houses in Phoenix, fixed them up and am renting them out. Houses can be picked up for $40 a sq ft which less than half of what it costs to build. You need a team wherever you buy to take care of the transaction and then fill the property amd a great person or company to do renos and repairs.

I don't know about the water restrictions in vegas but most of the water in Phoenix comes from surface water from northern snow packs and the Colorado river, so they aren't running dry any time soon.

[fuzebox]

Originally Posted by Redrob

The real problem with Vegas is the lack of water resources in my opinion. Look at the many dead lawns and watering restrictions.

Well it is 115-120F this month... You'd need some pretty hardy grass to sustain that. Lake Mead has been low for the past few years but we aren't running out anytime soon.

The city reimburses you around $1 per square foot of grass that you convert over to "desert landscape" (rocks and cacti and shit), because it saves water and prevents dust storms or something.

[adamz]

Lake Mead's water level has three times fallen below the drought level (1125 feet above sea level).[4] From 1953 to 1956, the water level fell from 1,200 to 1,085 feet (370 to 331 m). From 1963 to 1965, the water level fell from 1,205 to 1,090 feet (367 to 330 m). Since 2000 through 2008, the water level has dropped from 1215 to 1095. In 2009 the water level rose slightly due to cool winter temperatures and rainfall.
In June 2010, the lake was at 39 percent of its capacity,[5] and on Nov. 30, 2010 it reached 1,081.94 ft (329.78 m), setting a new record monthly low.[6] Arrangements are underway to pipe water from elsewhere in Nevada by 2011, but since the primary raw water intake at Lake Mead could become inoperable as soon as 2010 based on current drought and user projections, Las Vegas could suffer crippling water shortages in the interim.[7]

http://en.wikipedia.org/wiki/Lake_Mead

[Barefootsies]

Originally Posted by Rochard

This is going to become a huge problem for a lot of areas - Water. Vegas, LA, Atlanta to name a few off the top of my head.

Agreed.

In the next 50 years, "Blue Gold", is going to be more valuable that oil. Which is why you have the multinationals buying up as many water rights as they can get their hands on.

[fuzebox]

Originally Posted by adamz

Lake Mead's water level has three times fallen below the drought level (1125 feet above sea level).[4] From 1953 to 1956, the water level fell from 1,200 to 1,085 feet (370 to 331 m). From 1963 to 1965, the water level fell from 1,205 to 1,090 feet (367 to 330 m). Since 2000 through 2008, the water level has dropped from 1215 to 1095. In 2009 the water level rose slightly due to cool winter temperatures and rainfall.
In June 2010, the lake was at 39 percent of its capacity,[5] and on Nov. 30, 2010 it reached 1,081.94 ft (329.78 m), setting a new record monthly low.[6] Arrangements are underway to pipe water from elsewhere in Nevada by 2011, but since the primary raw water intake at Lake Mead could become inoperable as soon as 2010 based on current drought and user projections, Las Vegas could suffer crippling water shortages in the interim.[7]

http://en.wikipedia.org/wiki/Lake_Mead

Got anything more recent?

Las Vegas' main source of drinking water is expected to swell with almost 12.5 million acre-feet by October, according to new projections released Wednesday by the U.S. Bureau of Reclamation.

That's an increase of 1 million acre-feet from just one month ago, and it comes as a result of near-record snow accumulations in the mountains that feed the Colorado River and its main tributaries.

http://www.lvrj.com/news/lake-mead-s...121691803.html

[Kenny B!]

Do residents of Vegas get a water report from the city? I get one from the City of Phoenix each year letting me know about water levels, where the water comes from about the treatment plant etc.

I wouldn't hesitate to buy in Vegas for fear of drought, I would be more concerned that it's somewhat of a one industry town. Not that the casino's are going anywhere.

[UnUnited]

Originally Posted by fuzebox

I pay my management company 10% plus $350 per new tenant (advertising, screening, credit check, etc). Repairs are extra obviously and come out of rent before they pay me (the management company collects and then pays me via direct deposit on the 3rd week of the month).

It will definitely be a while before real estate values go up, but in the meantime I think it's a strong rental market. A lot of the people foreclosing are just renting in the same neighborhood.

Im curious to who you use as a management company ? I have eight 1 bed/1bath condo's in Vegas and I've been thinking about having someone handle some of it for me.

[huey]

Originally Posted by UnUnited

Im curious to who you use as a management company ? I have eight 1 bed/1bath condo's in Vegas and I've been thinking about having someone handle some of it for me.

Also would like more info in regards to good property management company in Vegas.

Thanks in advance

[PiracyPitbull]

Originally Posted by adamz

Lake Mead's water level has three times fallen below the drought level (1125 feet above sea level).[4] From 1953 to 1956, the water level fell from 1,200 to 1,085 feet (370 to 331 m). From 1963 to 1965, the water level fell from 1,205 to 1,090 feet (367 to 330 m). Since 2000 through 2008, the water level has dropped from 1215 to 1095. In 2009 the water level rose slightly due to cool winter temperatures and rainfall.
In June 2010, the lake was at 39 percent of its capacity,[5] and on Nov. 30, 2010 it reached 1,081.94 ft (329.78 m), setting a new record monthly low.[6] Arrangements are underway to pipe water from elsewhere in Nevada by 2011, but since the primary raw water intake at Lake Mead could become inoperable as soon as 2010 based on current drought and user projections, Las Vegas could suffer crippling water shortages in the interim.[7]

http://en.wikipedia.org/wiki/Lake_Mead

They are already well under way with the new (and 3rd) Lake Mead pipe which runs deeper into the lakes bed. Pipe should be finished in 2013.

Originally Posted by Mutt

Show me some samples of killer deals on Las Vegas homes. I just did an MLS search for Vegas homes for sale between 4-500K and I wasn't impressed with anything I saw.

I'm told over and over if you have CASH, you can get some real bargains in cities hit hard.

I'm in the midst of purchasing a new home: 3,700 sq feet, new development (master planned community). It's zoned for some of the newest/nicest schools in the city. The price is below 300k (WELL below if you don't go with many options).

The resale homes (non-shortsale or foreclosure) are actually priced a bit higher than many new home communities.

I can't honestly say that we'll see a real estate rebound in the next 5-10 years, but if you are ready to buy a primary home, prices are great. Also, there are quite a few nice investment opportunities as far as renting out properties (new homes in the 100s, and many under 100k condos). I just don't think we'll see insta-flips coming anytime soon.

As stated before, Fuzebox would be the person to talk to for investment purposes.

[L-Pink]

Originally Posted by Jesus H Christ

IMO and experience the best rental properties are always close to Universities. So if you're stuck on Vegas start looking around UNLV.

Very good point. Also as the house ages college students are less picky than regular rental families are.

.

[thickcash_amo]

The job market is not growing in Vegas, so no point in investing in real estate there

[fuzebox]

Originally Posted by UnUnited

Im curious to who you use as a management company ? I have eight 1 bed/1bath condo's in Vegas and I've been thinking about having someone handle some of it for me.

Originally Posted by huey

Also would like more info in regards to good property management company in Vegas.

Thanks in advance

Mine works as a division of Remax, over the last two years she's been great. Feel free to icq me 5030163 or email me rob at fuzebucks dot com for more info.

[Mr Pheer]

I bought my Vegas house before the insane real estate boom happened so I'm still in good shape with it. Most people that bought houses there after 2004 are pretty screwed, but the good news is now most of the homes that were built after that time can be picked up pretty cheap, including model homes that have never been lived in.

I've looked at a few foreclosure homes and there are some deals to be found if you dont mind replacing everything that the previous owners stripped out, like the light & plumbing fixtures and the kitchen cabinets and appliances, etc.

[96ukssob]

Originally Posted by greg80

I see masses of houses being sold for ridiculious low amount of money (at least comparing to EU prices). I am guessing there is way, way too much realestate and it's not worth to invest there, since the prices will not go up in decades with so much realestate on the market?

Las Vegas will most likely not increase as you would think. There is a HUGE surplus of houses there. Builders and developers thought it was going to boom, but it didnt

Originally Posted by greg80

If you buy a house and rent it out, would you make any money, or is rental market way down as well?

You will only make money if you plan to rent out to college students that go to UNLV or people who have horrible fucking credit or bad history that no one wants to rent to. A friend of mine rented a huge house in Vegas for $700/mo

Originally Posted by bossku69

Las Vegas will most likely not increase as you would think. There is a HUGE surplus of houses there. Builders and developers thought it was going to boom, but it didnt



You will only make money if you plan to rent out to college students that go to UNLV or people who have horrible fucking credit or bad history that no one wants to rent to. A friend of mine rented a huge house in Vegas for $700/mo

I imagine your friend rented in a part of town that tanked. Almost any home in a nicer neighborhood with nice square footage that I've seen, has rented for $1200 to $2500. I'm currently renting while my home is being built, and I'm paying around $2k a month.

[icymelon]

buy low sell high

[Si]

Ok question here.

I'm seeing on zillow places with about $500 per month mortage payments. And the rent estimate is $1100 per month.

How accurate is that?

Seems like an easy $600 per month per property if you get good tennants in there.

EDIT: With taxes and management fees it would still be an easy $400/$500 per month per property by the look of it.

[marlboroack]

I got mine for 60,000 cash, insane now.

[djroof]

I prefer stay at hotel and playing poker every day ;) I think this will be cheap :P If u are good "player"

[Sly]

Originally Posted by Si

Ok question here.

I'm seeing on zillow places with about $500 per month mortage payments. And the rent estimate is $1100 per month.

How accurate is that?

Seems like an easy $600 per month per property if you get good tennants in there.

EDIT: With taxes and management fees it would still be an easy $400/$500 per month per property by the look of it.

I don't know the LV rental market but if there is that much of a difference between rent and mortgage on a given property, there are most likely a lot of extra perks in the middle. Such as landscaping, utilities, and other extras.

I think you are also undervaluing some of your numbers.

Let's say we are talking about a $100,000 property and the mortgage is $500 a month. Your property taxes are probably somewhere around 1-2% (again, not completely sure about Vegas,) so that is another $100-200 a month. Then you have management fees of 10%, give or take, for another $100 a month. We are now up to $700-800. If it's in a HOA, add a couple more hundred. Throw in insurance, utilities, maintenance...

Money goes quick.

[Si]

Originally Posted by Sly

I don't know the LV rental market but if there is that much of a difference between rent and mortgage on a given property, there are most likely a lot of extra perks in the middle. Such as landscaping, utilities, and other extras.

I think you are also undervaluing some of your numbers.

Let's say we are talking about a $100,000 property and the mortgage is $500 a month. Your property taxes are probably somewhere around 1-2% (again, not completely sure about Vegas,) so that is another $100-200 a month. Then you have management fees of 10%, give or take, for another $100 a month. We are now up to $700-800. If it's in a HOA, add a couple more hundred. Throw in insurance, utilities, maintenance...

Money goes quick.

Good points Sly. I didn't factor everything in.

Maybe a way of looking it at might be, they could pay for you to buy the house. No profit off the home itself. But the rent would pay off the mortage.

Then IF the market rebounds. You will have a nice piece of real estate sitting there you haven't been paying for. That you can now sell for a profit.

[Nikki_Licks]

Originally Posted by fuzebox

Well it is 115-120F this month... You'd need some pretty hardy grass to sustain that. Lake Mead has been low for the past few years but we aren't running out anytime soon.

The city reimburses you around $1 per square foot of grass that you convert over to "desert landscape" (rocks and cacti and shit), because it saves water and prevents dust storms or something.

There are serious implications of Mead going dry. I saw a special about a month ago addressing this issue. When it does, it will affect millions. I remember when this lake was full to the top and no white line even existed and it has not taken that long to get where it is today.......sad, but true.

Here is a link to some information about the water shortage and future predictions regarding lake mead.


http://www.newsweek.com/2008/02/13/running-dry.html

With that being said, I would not buy any real estate in Las Vegas.

[Sly]

Oh another thing to keep in mind. The mortgage that one can get for their own home is different than the mortgage one can get for their rental property.

[Kenny B!]

Originally Posted by Sly

Oh another thing to keep in mind. The mortgage that one can get for their own home is different than the mortgage one can get for their rental property.

Try being a Canadian and finding a lender for investment properties. It's damn near impossible, unless you put 100% down

I would love to find a lender so I can buy up some more houses and not have to plunk down the full amount.

[PornoMonster]

Originally Posted by NALEM

I agree with LazyCash on this, but I follow a strict strategy on dealing with renters.
I prescreen the renters and will wait it out till I find one that feels right. Second, I dont discount rent, but will give the 12th month free, if all the monthly payments have been made on time.

In the distant past, when I rented out the first condo I ever owned, I actually structured, the contract as a Roommate Agreement, which recognized me as a fellow roommate/occupant, giving me access to walk into the property whenever I wanted.

Key is finding a great management company.

Kinda creepy???? Guess your prescreen doesn't work so well if you feel the need to invade when ever you want.

[JFK]

A friend owns 2 houses in Henderson, they have gone down to 1/2 price