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Old 04-22-2013, 01:36 PM
 
9,957 posts, read 8,445,983 times
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There's lots of talk on here about buying single unit residential properties (SF houses, townhouses, individual condo units, etc) for investment purposes.

What are the opportunities for other types of RE investments, especially income oriented, in metro Vegas? Is anyone here doing this type of thing? What are cap rates like (in general, I know this is a deal by deal, category by category thing)? How hard is it to enter the various markets? What's the leasing environment like?
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Old 04-22-2013, 01:59 PM
 
Location: ( ͡ ͜ʖ ͡) (╯□)╯︵ ┻━┻ ̡
7,112 posts, read 10,855,275 times
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Are you interested in multi-family apartments? My wife's boss is buying up and building new apartments all around the valley like crazy. He "jokes" to her about buying a small complex herself to manage. We are not ready right now but maybe in the future when the kids are older.

By the way, my wife has a couple 200-500 unit complexes that she manages that sit at 92-99% occupied. One is at 100%. You can just imagine the return on those with good management.

One of my in-laws wants to purchase a 7-plex behind the Strat. It is going for $150K. The current owner has it half rented at $400 each(2 bed/1 bath). But it is a high turn over, high crime area. My aunt would only get it if my wife and I would provide a hands-on management of it. One of us would have to quit our day job to appropriately manage this place. It is below market if fixed up a little.


now $400 x 7 =$2800 monthly

The owner said he used to rent at $550

before $550 x 7 =$3850

If fixed up a little, then maybe $600 is possible

Wishing $600 x 7 =$4200

There are a couple near old Fremont area. Found an 8-plex for $120K.(Don't know the rent price) But it needed a lot of work. Maybe $50K worth or more.

Still better than non occupied commercial real estate. Can't even depend on Best Buy being an anchor store anymore.
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Old 04-22-2013, 02:04 PM
 
Location: The North
4,962 posts, read 8,679,624 times
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There are relatively few 2 to 4 unit residential opportunities which dampens the little guy from investing. Larger commercial sized apartments have decent returns in working class areas, but deal with really high turnover so they need solid management and marketing. If you just looked at raw numbers you'd think these are great spots, but the number of times you will have to turn over a place and the incentives you will need to give really hold your returns down.
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Old 04-22-2013, 02:06 PM
 
Location: ( ͡ ͜ʖ ͡) (╯□)╯︵ ┻━┻ ̡
7,112 posts, read 10,855,275 times
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The Fremont revamp is affecting a lot of commercial real estate also.

[sorry, links to RE for sale are not permitted]

Last edited by observer53; 04-25-2013 at 04:10 PM..
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Old 04-22-2013, 02:14 PM
 
Location: ( ͡ ͜ʖ ͡) (╯□)╯︵ ┻━┻ ̡
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Quote:
Originally Posted by Willy702 View Post
There are relatively few 2 to 4 unit residential opportunities which dampens the little guy from investing. Larger commercial sized apartments have decent returns in working class areas, but deal with really high turnover so they need solid management and marketing. If you just looked at raw numbers you'd think these are great spots, but the number of times you will have to turn over a place and the incentives you will need to give really hold your returns down.
Hence the reason why my aunt does not deal with property management companies anymore. She has been burned several times. My wife and I have been able to stabilize her older downtown SFRs. She could not handle the rentals on her own, the management companies thought they could handle them, but couldn't. She thought we could give it a shot, we are doing alright so far. But it is taking a very hands on approach. Lots of headaches most times. But tons of experience that I would never get anywhere else.
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Old 04-22-2013, 02:15 PM
 
674 posts, read 754,882 times
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Quote:
Originally Posted by Willy702 View Post
There are relatively few 2 to 4 unit residential opportunities which dampens the little guy from investing. Larger commercial sized apartments have decent returns in working class areas, but deal with really high turnover so they need solid management and marketing. If you just looked at raw numbers you'd think these are great spots, but the number of times you will have to turn over a place and the incentives you will need to give really hold your returns down.
Also to consider: the price of stress in your life. These quads in bad areas have great returns (on paper).
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Old 04-22-2013, 06:57 PM
 
9,957 posts, read 8,445,983 times
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I find that are interesting. Beyond what could be ground out with the existing buildings, I think this are aid prime For redevelopment, maybe even more so that downtown.

Quote:
Originally Posted by von949 View Post
Are you interested in multi-family apartments? My wife's boss is buying up and building new apartments all around the valley like crazy. He "jokes" to her about buying a small complex herself to manage. We are not ready right now but maybe in the future when the kids are older.

By the way, my wife has a couple 200-500 unit complexes that she manages that sit at 92-99% occupied. One is at 100%. You can just imagine the return on those with good management.

One of my in-laws wants to purchase a 7-plex behind the Strat. It is going for $150K. The current owner has it half rented at $400 each(2 bed/1 bath). But it is a high turn over, high crime area. My aunt would only get it if my wife and I would provide a hands-on management of it. One of us would have to quit our day job to appropriately manage this place. It is below market if fixed up a little.


now $400 x 7 =$2800 monthly

The owner said he used to rent at $550

before $550 x 7 =$3850

If fixed up a little, then maybe $600 is possible

Wishing $600 x 7 =$4200

There are a couple near old Fremont area. Found an 8-plex for $120K.(Don't know the rent price) But it needed a lot of work. Maybe $50K worth or more.

Still better than non occupied commercial real estate. Can't even depend on Best Buy being an anchor store anymore.
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Old 04-22-2013, 08:49 PM
 
2,132 posts, read 2,189,936 times
Reputation: 1299
Quote:
Originally Posted by von949 View Post
Hence the reason why my aunt does not deal with property management companies anymore. She has been burned several times. My wife and I have been able to stabilize her older downtown SFRs. She could not handle the rentals on her own, the management companies thought they could handle them, but couldn't. She thought we could give it a shot, we are doing alright so far. But it is taking a very hands on approach. Lots of headaches most times. But tons of experience that I would never get anywhere else.
Tell us more about the management company's inadequacies, I'm interested.
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Old 04-22-2013, 09:29 PM
 
Location: ( ͡ ͜ʖ ͡) (╯□)╯︵ ┻━┻ ̡
7,112 posts, read 10,855,275 times
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Quote:
Originally Posted by ddrhazy View Post
Tell us more about the management company's inadequacies, I'm interested.
I personally don't think local PMCs are cut out for low income housing in low income neighborhoods. That's a whole new ball game when dealing with rental property. SFRs in Summerlin, Henderson or Aliante...I am sure they can handle all day. As Scoop puts it, they can deposit the checks with ease. Property in the rough areas require a little more than just knowing how to deposit checks.

That's about all I will say about that without naming specific companies or telling details of past incidences.
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Old 04-22-2013, 09:46 PM
 
2,132 posts, read 2,189,936 times
Reputation: 1299
Quote:
Originally Posted by von949 View Post
I personally don't think local PMCs are cut out for low income housing in low income neighborhoods. That's a whole new ball game when dealing with rental property. SFRs in Summerlin, Henderson or Aliante...I am sure they can handle all day. As Scoop puts it, they can deposit the checks with ease. Property in the rough areas require a little more than just knowing how to deposit checks.

That's about all I will say about that without naming specific companies or telling details of past incidences.
I guess if you can buy a ratty quadruplex for 80k and rent each one out at 500/month, you're able to make it work. Even if you have to change the carpet and repaint once a year. Only way you can do it is to completely and utterly detach yourself emotionally from the property, not easy to do for a landlord.
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