[Swigchow]

Recently, I have received nearly a dozen PM inquiries concerning our MGM Signature experience. Here is Good and Bad update.

Good: We purchased the MGM Signature unit cheap, 71% off the original sale price from three years earlier.
Bad: The adjacent unit with similar features sold through a short sale 11% less about 7 months later.

Good: The service and staff are outstanding. As owners they seem to always treat us like royalty, unlike any other place we have stayed in Las Vegas. The amenities are also wonderful.
Bad: HOA fees of $496/month.

Good: Great location, central along the strip. Lots of restaurants and activities.
Bad: Cost a fortune to take a taxi a few blocks from the airport.

Good: Fantastic view of the strip.
Bad: Although it is supposed to be a positive feature, it is scary to look down from the balcony.

Good: Non-smoking.
Bad: No bad to that.

Good: Occupancy has been averaging 21 to 22 days per month.
Bad: Daily rental rates have dropped significantly.

Good: Revenue positive, which was my greatest fear that it would be negative. Rental income has covered HOA, all management fees, insurance, utilities, and also real estate taxes. So far so good.
Bad: ROI of 2.2%. Over the same time span S&P was up 9%.

Good: Wife actually enjoys visiting Las Vegas. Previously, it would be #99 of the top #100 places to vacation (just above North Dakota).
Bad: So do all our family and friends. Hint - if you buy one of these dont tell anyone, cuz it will significant eat into your rental income.

Good: Less foreclosures.
Bad: More short sales. We, unfortunately, missed the opportunity to purchase the neighboring pod unit.

Good: No regrets so far.
Bad: If we ever decide to sell, return on investment is unclear.


I would like to hear other Las Vegas investment experiences.

[von949]

"Bad: HOA fees of $496/month."

Thats a car payment!

[DowntownVentura]

Good timing on this thread for me. I have been toying with jumping into the MGM on one of their studios.

I wasn't quite sure if I would participate in their rental market. What is the typical daily (net) rent?

As for property taxes, I assume they use the purchase price for the assessed value. Then 35% of that for the taxable value. And the property tax rate is 3.1141%. So for a $130,000 condo, it would be $118/month (if I did that right) That seems reasonable.

The HOA seems to range based on the size of the unit. The studio HOA fees seem to be less than $400/month

Various repairs/utilities, maybe $200/month so about $700/month carrying cost. (I intentionally omitted purchase price, I am just listing out of pocket expenses)

Can these units demand a higher per day rental than the big strip hotels? They have all the service and even the studio with kitchenette makes for a very nice room. What do the typically rent for? $70? How much does the rental agency take?

[pommysmommy]

I get offers all the time as a player's card member for the MGM Signature at a discount rate. At the same time I receive offers for 3 free nights at other MGM properties including the MGM Grand. Why would I pay for something I can get for free?

[DowntownVentura]

Originally Posted by pommysmommy

I get offers all the time as a player's card member for the MGM Signature at a discount rate. At the same time I receive offers for 3 free nights at other MGM properties including the MGM Grand. Why would I pay for something I can get for free?

I understand that free at the hotel is preferred but if you wouldn't mind, what price was offered at the Signature?

[airics]

Originally Posted by DowntownVentura

Can these units demand a higher per day rental than the big strip hotels?

no, if you are a tourist why would you even stay there? there is no volcano at the signature!

[pommysmommy]

Originally Posted by DowntownVentura

I understand that free at the hotel is preferred but if you wouldn't mind, what price was offered at the Signature?

$129.00 per night.

[airics]

$129??? Signature or Bellagio, i'd stay at the Bellagio.

[pommysmommy]

Exactly! We stay at the Bellagio for free.

[DowntownVentura]

I am just learning about these. The Signature does have a kitchen and that could be an advantage some will take over the Bellagio. Free Belagio trumps all though!!

There seems to be the MGM Signature run by the hotel and the MGM Signature where the units are private owners. I am interested in the latter but I think the services of the hotel side are better and they can command the $129 a lot easier than the private owner units can. If I could get the services of the hotel (room service, maid service, etc) on my private owned unit, the investment on purchasing one may be worthwhile.