U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Nevada > Las Vegas
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-20-2018, 06:51 PM
 
Location: Here and there, you decide.
11,625 posts, read 22,799,205 times
Reputation: 3920

Advertisements

Quote:
Originally Posted by ragabnh View Post
After you pay Property Manager, HOA, Taxes, insurance and Home Warranty, the return on your investment is 4% or even less. Which makes investing in real estate not good at this time. CD's and Dividend Funds are more appropriate and your money is Liquid. Speaking from paying cash perspective.
If you are talking Vegas thatís true. How do you figure cds are liquid? You are locked in and 4% is not a great investment
Reply With Quote Quick reply to this message

 
Old 11-20-2018, 09:45 PM
 
96 posts, read 61,354 times
Reputation: 80
The deals were in 2009-2011, buying a 5 year old houses at 2,100 square feet at $105-110K, renting at $1,350.
Reply With Quote Quick reply to this message
 
Old 11-21-2018, 01:34 AM
 
761 posts, read 1,050,052 times
Reputation: 690
Besides the return on investment, are you also taking into account the property’s appreciation? This is assuming you bought right and in a desirable area.

Last edited by Packrat1; 11-21-2018 at 01:37 AM.. Reason: Edit
Reply With Quote Quick reply to this message
 
Old 11-21-2018, 11:12 PM
 
5,562 posts, read 5,752,718 times
Reputation: 2487
Quote:
Originally Posted by ragabnh View Post
After you pay Property Manager, HOA, Taxes, insurance and Home Warranty, the return on your investment is 4% or even less. Which makes investing in real estate not good at this time. CD's and Dividend Funds are more appropriate and your money is Liquid. Speaking from paying cash perspective.
ARent the taxes cheap, insurance is pretty cheap too no? What is difference between home warranty, and insurance?
Reply With Quote Quick reply to this message
 
Old 11-22-2018, 06:18 AM
 
348 posts, read 540,921 times
Reputation: 342
Insurance is Landlords insurance (or homeowners if you are living in property). Home Warranty covers things like water heaters, stoves, airconditioner/heater. Taxes are fairly low. CD is far from liquid, either route, buying for investment, or c.d. is a gamble, c.d. can tie money up for a while, investments can appreciate. It's up to your level of comfort.
Reply With Quote Quick reply to this message
 
Old 11-22-2018, 11:50 AM
 
Location: The North
4,986 posts, read 8,742,136 times
Reputation: 3889
Quote:
Originally Posted by ragabnh View Post
After you pay Property Manager, HOA, Taxes, insurance and Home Warranty, the return on your investment is 4% or even less. Which makes investing in real estate not good at this time. CD's and Dividend Funds are more appropriate and your money is Liquid. Speaking from paying cash perspective.
If you aren't using leverage real estate investment returns aren't great in most markets.
Reply With Quote Quick reply to this message
 
Old 11-22-2018, 11:53 AM
 
Location: Here and there, you decide.
11,625 posts, read 22,799,205 times
Reputation: 3920
Where are cd’s 4%? I would never lock-in for more than a year
Reply With Quote Quick reply to this message
 
Old 11-22-2018, 11:14 PM
 
5,562 posts, read 5,752,718 times
Reputation: 2487
Quote:
Originally Posted by kcoliver View Post
Insurance is Landlords insurance (or homeowners if you are living in property). Home Warranty covers things like water heaters, stoves, airconditioner/heater. Taxes are fairly low. CD is far from liquid, either route, buying for investment, or c.d. is a gamble, c.d. can tie money up for a while, investments can appreciate. It's up to your level of comfort.
Is home warranty required? NYC does not really have home warranty. At least I never hear too much about it.
Reply With Quote Quick reply to this message
 
Old 11-22-2018, 11:16 PM
 
5,562 posts, read 5,752,718 times
Reputation: 2487
Quote:
Originally Posted by Willy702 View Post
If you aren't using leverage real estate investment returns aren't great in most markets.
By leverage, dont you mean bank debt? If you can buy outright without owing the bank, then you get to keep all that money. Usually bank debt is greatest fixed cost. How can that not be a great investment?
Reply With Quote Quick reply to this message
 
Old 11-23-2018, 05:21 AM
 
2,141 posts, read 2,217,860 times
Reputation: 1311
Quote:
Originally Posted by NJ Brazen_3133 View Post
By leverage, dont you mean bank debt? If you can buy outright without owing the bank, then you get to keep all that money. Usually bank debt is greatest fixed cost. How can that not be a great investment?
Because you are using someone else's money to make an investment. If you can get a mortgage for 100k and make 7% ROI for the rental and the interest on the loan is 4%, you are pocketing a 3% profit.

But today's rentals in Las Vegas and the rates offered by banks for a 30 year fixed rate mortgage don't have the numbers to make this idea pencil out anymore. Instead, you're looking at 5.5% ROI at best. When 30 year fixed rate mortgages are 5%, why bother making 0.5% on your money when you can put the money in a 1 year CD at 3%?

If investors are buying with a 15 or 10 year mortgage or outright cash it can still make sense but there is always the fear that the price of real estate drops like it did in '07.

The house play makes you a landlord with the problem of management, maintenance, vacancy filling, tenant screening, cleaning, remodeling, rent collection, evictions and the possibility of real estate depreciating.

The CD play is risk free and insured by the federal bank.

Both tie up your money, but real estate probably ties up the average investor's cash for at least 5 years, if not longer. There's plenty of CDs that let you withdraw your cash and forfeit the interest appreciated if you decide to remove it before it matures, making CDs fairly liquid.

Buying real estate in Las Vegas on speculation is pointless now. The days of double digit appreciation is likely over.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Nevada > Las Vegas
View detailed profiles of:
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top