Las Vegas real estate, 3bf sfr,

B

buylowsellhigh_IHB

New member
A buddy of mine e-mailed me some links to Las Vegas real estate, saying that the homes there are sub-100k. At first I didn't really believe this but after browsing some realtor.com listings, there are literally thousands of listings in the above criteria between $75-100k. With a 20k down payment over 20 yrs, its $500 a month. On Craigslist, rental homes homes are listing for 1000-1200 a month. So... whats the catch??? What stops one from hiring dropping $20k and hiring a property management company? So so strange...
 
The neighborhoods these homes are in, for one.



Vegas is a rough town. If you want to stay in the nice neighborhood, you need to move to a new development every 7-10 years.
 
[quote author="buylowsellhigh" date=1236701136]A buddy of mine e-mailed me some links to Las Vegas real estate, saying that the homes there are sub-100k. At first I didn't really believe this but after browsing some realtor.com listings, there are literally thousands of listings in the above criteria between $75-100k. With a 20k down payment over 20 yrs, its $500 a month. On Craigslist, rental homes homes are listing for 1000-1200 a month. So... whats the catch??? What stops one from hiring dropping $20k and hiring a property management company? So so strange...</blockquote>
Those homes are either tiny (1,000-1,200/sf) and/or they are located in the real IFFY parts of town that you nor I would ever consider living. The newer stuff that is selling for that price is for stuff way up in the Northwest part of town which is about 20-30 minutes from the strip. The other issue is that vacancy rates are starting to go up so it's gonna get more and more challenging to get and keep a good renter.
 
[quote author="no_vaseline" date=1236728484]The neighborhoods these homes are in, for one.



Vegas is a rough town. If you want to stay in the nice neighborhood, you need to move to a new development every 7-10 years.</blockquote>
and ones that are closer to the strip...Anthem, Green Valley Ranch, Summerlin come to mind.
 
Oh I forget, these are >1600 sqft homes, fairly close to the strip, and the interior looks fairly decent though most are empty. 1800sqft are going $100ish. If its too big, you'll use an entire year's of rental profit to fix the damn place ;)



$20k down will be like less than $500 a month over 20 yrs... thoughts?
 
[quote author="buylowsellhigh" date=1236742365]Oh I forget, these are >1600 sqft homes, fairly close to the strip, and the interior looks fairly decent though most are empty. 1800sqft are going $100ish. If its too big, you'll use an entire year's of rental profit to fix the damn place ;)



$20k down will be like less than $500 a month over 20 yrs... thoughts?</blockquote>


Only questions, but nothing a drive through the neighborhood at 10pm on a Saturday night wouldn't answer.



You'll have to do your homework on this one. There are a glut of properties over in that town, and I'd be super choosy on picking up one. It's not like you don't have a limited selection.............
 
[quote author="buylowsellhigh" date=1236742365]Oh I forget, these are >1600 sqft homes, fairly close to the strip, and the interior looks fairly decent though most are empty. 1800sqft are going $100ish. If its too big, you'll use an entire year's of rental profit to fix the damn place ;)



$20k down will be like less than $500 a month over 20 yrs... thoughts?</blockquote>
I have my realtor license in Vegas, PM me some of the addresses and I can run some sales and rental comps on MLS for you. I'm curious to know which area these properties are in, my guess is it's in the Mountain's Edge masterplan community (Blue Diamond Road/Buffalo). I have a rental property in Vegas so I know the key to keeping a property leased is to be slightly below the rental comps. You don't even have to put 20% down, BofA offers a no-fee mortgage where they'll lend you 90% and they pick up the PMI and closing costs for you (great deal for smaller loans and the pricing on those 90% LTV loans is lower than 80% LTV loans because of the PMI they pay for).



If everything checks out on these properties and there's a lot of cushion, I wouldn't mind going in 50-50 with you. I know Las Vegas farely well, have access to a lot of info, and best of all my dad lives there and can manage the property (would save up 8% of the monthly rent).
 
^^ Now THAT would a an awesome arrangement!



Just to give a background, I'm on the internet 14 hrs a day, researching for income opportunities whether it is real estate, tangible good, financial related... In the past, I went as crazy as buying $250k of groceries (with no capital) flipping it around and making about 5% HAHA. This thread basically is the result of my 30 minutes following up a tip a friend gave me last week. I'm not yet convinced but my peers think im gun ho for some reason =P.



But, I'm still following up on another lead, to use real estate equity to leverage a larger loan. Apparently, SBA would rather take $50k of real estate collateral (that still collects rent) to give you $200k cash. When I offered to put up $50k cash in a CD-deposit to borrow $200k cash, i was declined for that deal. What a stupid system, but to work with a stupid system, you gotta play with their rules =P
 
[quote author="buylowsellhigh" date=1236752866]^^ Now THAT would a an awesome arrangement!



Just to give a background, I'm on the internet 14 hrs a day, researching for income opportunities whether it is real estate, tangible good, financial related... In the past, I went as crazy as buying $250k of groceries (with no capital) flipping it around and making about 5% HAHA. This thread basically is the result of my 30 minutes following up a tip a friend gave me last week. I'm not yet convinced but my peers think im gun ho for some reason =P.



But, I'm still following up on another lead, to use real estate equity to leverage a larger loan. Apparently, SBA would rather take $50k of real estate collateral (that still collects rent) to give you $200k cash. When I offered to put up $50k cash in a CD-deposit to borrow $200k cash, i was declined for that deal. What a stupid system, but to work with a stupid system, you gotta play with their rules =P</blockquote>
Hey, you look for the angle in a deal to make money...nothing wrong with that. Whether you want to partner up or not with me, I'm still more than happy to provide you with more in depth information that I have via my MLS access in Las Vegas plus my knowledge of the area. It's information and due diligence that are the difference between making and losing money. The reality is if we can throw less than $10k at a nice SFR that has a nice return with a 1-2 month vacancy built in, I'm ready to go.
 
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