[jayandjay]

Hello,

I am considering buying a property in Las Vegas for investment, with price range 100-200K. The cash flow doesn't have to be positive. Would love to have your opinions on issues as follow:
1. Is Las Vegas rental market better for short- or long-term rental? Or, is the economy too bad for a rental property?
2. From various therads, Sumerlin and Henderson seem to be a good area. True? For long- or short-term?
3. Where can I start serching for properties with great appreciation potential and good rental.

Thanks .
JJ

[agentdm007]

It's a great time to buy a rental in Las Vegas. Long term rentals are better as a landlord so that you're not having to re-market and add expenses to your cost. People are still living in Vegas so they will need a place to live. Summerlin and Henderson are desirable areas for families looking to live away from the city. Summerlin particularly is a masterplanned community, if that interests you. The question is will you ever live in this property? A rental property is an investment, if you're not going to live in it, why are you buying it like you will? There are areas all over the valley that will have great potential for appreciation in the long term. The best advice is to start making offers on properties you're considering, and see if you have a fighting chance on the property, as there can be multiple offers on the best deals

Originally Posted by jayandjay

Hello,

I am considering buying a property in Las Vegas for investment, with price range 100-200K. The cash flow doesn't have to be positive. Would love to have your opinions on issues as follow:
1. Is Las Vegas rental market better for short- or long-term rental? Or, is the economy too bad for a rental property?
2. From various therads, Sumerlin and Henderson seem to be a good area. True? For long- or short-term?
3. Where can I start serching for properties with great appreciation potential and good rental.

Thanks .
JJ

[jayandjay]

Thanks, aquadm! Really appreciate it. No, we are not planning to move there. Any place with good rental and excellent long-term appreciation would be great. Any suggetsions? Thanks in advance.

[airics]

Don't forget to add property management costs.. You are over 60 miles away and unless you know someone here, you are required by law to have someone manage it... plus 100-200k is too much for a rental IMO.

[jayandjay]

Hi airics, agreed! I will definitely have to work with a property manager. What price range you think is reasonable for rental? Thanks.

[olecapt]

You have conflicting goals. Appreciation and return are probably very different places and prices.

Airics is correct if you want to get a reasonable return. Under 100K 3/2 probably in the north or northwest. Desirably under $65 per SF. No more than $75.

If you want appreciation you should probably go for a somewhat higher price point that is newer and was really smashed in the foreclosure mess.

And you could wait a long time on appreciation. I would think at least three years and probably more than five before you see any significant movement.


I think though that Airics is right and the rational Vegas play is return. The appreciation play makes sense only if you are thinking about living in it one day or such. Just too long and too uncertain.

[tony soprano]

Originally Posted by olecapt

You have conflicting goals. Appreciation and return are probably very different places and prices.

Airics is correct if you want to get a reasonable return. Under 100K 3/2 probably in the north or northwest. Desirably under $65 per SF. No more than $75.

If you want appreciation you should probably go for a somewhat higher price point that is newer and was really smashed in the foreclosure mess.

And you could wait a long time on appreciation. I would think at least three years and probably more than five before you see any significant movement.


I think though that Airics is right and the rational Vegas play is return. The appreciation play makes sense only if you are thinking about living in it one day or such. Just too long and too uncertain.

I take it you've thrown in the towel on your 5%-10% price appreciation forecast for 2010?

[007 license to sell]

Originally Posted by jayandjay

Hello,

I am considering buying a property in Las Vegas for investment, with price range 100-200K. The cash flow doesn't have to be positive. Would love to have your opinions on issues as follow:
1. Is Las Vegas rental market better for short- or long-term rental? Or, is the economy too bad for a rental property?
2. From various therads, Sumerlin and Henderson seem to be a good area. True? For long- or short-term?
3. Where can I start serching for properties with great appreciation potential and good rental.

Thanks .
JJ

This article not only covers what is happening with rents but how renters are looking at purchasing over renting since prices have dropped to all time lows.

Las Vegas apartment rent prices continue to fall

[WestieJeff]

It's my opinion that it is a good time to buy rental property, if that's what you're into. Based on my calculations, paying cash, you can reasonably expect a 8%-15% return per year depending on exactly what you buy and what kind of deal you can get. That's not factoring in any appreciation (or depreciation).

It's hard for me to recommend illiquid real estate as an investment at 8% when I can get a totally liquid tax free muni bond fund that pays 7-8% dividends or a liquid, tax advantaged MLP that pays 10%. Nothing's free though, everything has risk.

Originally Posted by jayandjay

Hello,

I am considering buying a property in Las Vegas for investment, with price range 100-200K. The cash flow doesn't have to be positive. Would love to have your opinions on issues as follow:
1. Is Las Vegas rental market better for short- or long-term rental? Or, is the economy too bad for a rental property?
2. From various therads, Sumerlin and Henderson seem to be a good area. True? For long- or short-term?
3. Where can I start serching for properties with great appreciation potential and good rental.

Thanks .
JJ

[jayandjay]

Thanks all for your comments!

Westiejeff, you said municiapl bond gives you 8%? It seems high tome? Thanks for suggestions, though.