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Old 09-17-2010, 09:24 PM
 
8 posts, read 18,590 times
Reputation: 11

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If you wanted invest in a condo for a long term rental property and had a budget of between $100-$200k - what development would you put your money into?

I'm interested in condos proximate to the strip but am leaning towards a midrise unit (Manhattan or similar) and not a highrise unit because of the high HOAs in the highrises. The rents in the highrises do not seem to justify the increased purchase price and monthly HOA fees.

I could pay cash for the unit, but would love to finance on a 15 year note with 40% down - so if financing were available, that would be a huge plus.

If you were in my shoes, which condo developments would you consider for investment purposes? I am never planning to live in this unit long term, but it could be a vacation home a few years down the road...

Thanks for all of your thoughts - I really appreciate it.
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Old 09-18-2010, 12:01 AM
 
Location: Rockport Texas from El Paso
2,601 posts, read 7,326,978 times
Reputation: 1569
There is still no rush to buy- bid very low. More jobs are being lost and people are leaving. Really if you wanted a long term rental value you'd do better in Colorado or Texas
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Old 09-18-2010, 01:46 AM
 
Location: The North
4,981 posts, read 8,719,136 times
Reputation: 3873
Those midrise units are terrible investments so far, but I suppose if you get the right price they could work. They make no sense though, they are just oversized apartment buildings. The location is nothing spectacular. The rental market for it often comes in just a tad higher than units in more normal sized condos because of the gyms and amenities, but in no way do the numbers pencil out. You are right the high-rises make no sense as rentals either. People who are making money in condos right now are just buying units under serious stress in non-descript buildings and just exhibiting a very strong stomach in dealing with the high vacancies and HOA issues.
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Old 09-18-2010, 02:04 AM
 
8 posts, read 18,590 times
Reputation: 11
Default Appreciate the input so far!

Thanks for the opinions so far.

I was averse to the idea of investment in a single family residence because of the maintenance issues and I preferred the low maintenance that a condo would provide since I am an out of state owner.

Regardless of how many of you might currently feel about Vegas, I think Vegas has tremendous potential and will recover in the long term. Nevada offers tax advantages, a warm climate, has a great airport, is proximate to California, and has a very affordable cost of living in relation to most very large cities.

I'm thinking if I can get in around $90k for a 2br Manhattan unit that would rent for around the $1k per month range, it would make sense taking into account the depreciation and other expenses I could write off on my taxes. I understand that in some ways these midrise units truly are glorified apartments - but again, so are the highrises if you look at it from that perspective.

I'm 37 y/o and need to start looking at where I want to be 15 years from today. I figure that 15 years from now, if the unit is paid off, it provides me with either a comfortable vacation home, or a decent income stream as I will be heading towards retirement at that point.

Again, all thoughts and comments are appreciated!
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Old 09-18-2010, 11:01 AM
 
Location: H-Town... "A place to call home"
2,531 posts, read 3,983,827 times
Reputation: 891
I agree with the above comments, additionally...
The ratio of non-owner occupants is extremely high, financing will be difficult (if not impossible).
Very little chance of securing a 2-Bdrm for 90K unless it was an all cash-no contingency deal.
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Old 09-18-2010, 12:11 PM
 
207 posts, read 417,868 times
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I might widen your search to single family homes, as I have done. Home warranty's are readily available and reasonably priced and can provide some peace of mind on the maintenance issues. There are many available that are under 10 yrs old, not uncommon to find 5-7yr old homes at great prices. I think they may offer a little more in terms of appreciation possibility as well. I am by no means any expert, but I've been involved in and watching the situation for the past year and a half to two years. You and I are in very similar situations, shoot me a PM if you'd like.
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Old 09-18-2010, 01:15 PM
 
4,039 posts, read 8,339,196 times
Reputation: 2880
LOL. You all know that 15 years ago a BJ dealer earning $40K a year was able to afford a nice home in a nice neighborhood. You also know that that had been the situation for a very very long time.

Hope you all really know what the long term really means in a town with ridiculous unemployment and a never ending supply of land.
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Old 09-18-2010, 03:43 PM
 
8 posts, read 18,590 times
Reputation: 11
Quote:
Originally Posted by JohnG72 View Post
Hope you all really know what the long term really means in a town with ridiculous unemployment and a never ending supply of land.
What I'm looking at is acquiring an asset that is at or below construction cost. Regardless of the situation in the local economy at this juncture, I would be shocked if rents did not increase significantly over a 15 year horizon.

A lot will change in the next 15 years. 15 years ago, I had no idea what the internet was.

But I still appreciate all the viewpoints and it is making me think about the decision much more carefully. Keep it coming!
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Old 09-18-2010, 05:45 PM
 
Location: H-Town... "A place to call home"
2,531 posts, read 3,983,827 times
Reputation: 891
I just saw a 4 Bdrm/4 Ba 1600 sqft. 3-story townhome for sale in Aliante.
Built in 2005, asking $74,000 ($46 sqft.), presently rented for $945 (long term lease).
Has a pool/spa/playground/parks and sand volleyball courts.
Fully landscaped with grass and trees.
Not an REO or Short sale.
HOA= $84
Current Taxes= $1183

Property is owned by an investor who is selling off his rental portfolio (before prices plummet again?)
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Old 09-18-2010, 08:31 PM
 
8 posts, read 18,590 times
Reputation: 11
Quote:
Originally Posted by eventusstultorummagister View Post
I just saw a 4 Bdrm/4 Ba 1600 sqft. 3-story townhome for sale in Aliante.
Built in 2005, asking $74,000 ($46 sqft.), presently rented for $945 (long term lease).
Has a pool/spa/playground/parks and sand volleyball courts.
Fully landscaped with grass and trees.
Not an REO or Short sale.
HOA= $84
Current Taxes= $1183

Property is owned by an investor who is selling off his rental portfolio (before prices plummet again?)

This sounds almost too good to be true in terms of the numbers. Wondering if I need to take a a drive out there when I visit in a couple weeks.
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