Home Buying in Las Vegas>Question Details

Aaron, Home Buyer in Las Vegas, NM

I am a foreigner hoping to buy SFR in Las Vegas for regular income.

Asked by Aaron, Las Vegas, NM Fri May 13, 2011

There are lots of choices out there but how do I narrow down my searches to those with high rental yield? I am lucky to have some cash with me so I need no financing. Does that put me in a better position to strike good deals?

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BEST ANSWER
Yes, right now "cash is king" when it comes to making offers on property!

When I have a client who wants to purchase a single family residence for the purpose of renting it out, I generally recommend:
* 3 or 4 bedroom
* Minimum 2 bathroom
* 2 car attached garage
* NO pool
* between 1400 and 1800 square feet
* built after 1990 or 1995 for fewer rehab and maintenance issues
* neighborhood convenient to shopping, big employers, and highways.

I hope this is helpful to you. Keep in mind that median rent in the MLS system is about $1100 monthly. If I can do anything to help you further, please let me know.
1 vote Thank Flag Link Fri May 13, 2011
The easiest rental is houses less than 8 years old with square feet 1700+ and a decent back yard. I look for houses selling below $100,000 and am finding a large selection of Bank REOs where they can be negotiated down to 20% below market.

David Cooper. Las Vegas Foreclosure Investor in Bank Owned REOs with Huge Cash Flow. for Free daily list
email: davidcooper@lasvegaswinner.org or Call: +1-7024997037 not a real estate investor
2 votes Thank Flag Link Sun May 15, 2011
Hi Aaron,

Having cash does help, because many Realtors would rather accept a cash offer rather than a financed offer, because there are so many more steps when financing is involved rather than a relatively simple cash deal. In addition, it is difficult although not impossible for a foreigner to obtain financing so cash does come in handy. We have done deals for Canadians and Australians so we know what to expect when it comes to foreign investors and vesting. Contact me at the email address listed below, and I can also send you more documents and information when it comes to foreign investors.

Our real estate company, Realty Executives of Nevada, manages property. We are a trusted name brand company and are one of the top brokerages in Nevada, with our real estate team earning many awards.

The average rents in Summerlin and Henderson/Green Valley are about $0.60-0.70 cents per square foot. If the house has added amenities, such as a bedroom downstairs or a three car garage or is in a nicer neighborhood, this affects the rents along with the marketability of the property. Of course homes with more bedrooms and square footage are more desirable. A pool usually adds about $100-150 to rents, however there may be more headaches with a pool involved. You should at least buy a home with a 2 car garage and 3 bedrooms. If you would like to know more about our property management program, I have information on my website listed below.

Another way to obtain Cash Flow and recommended by Author Robert Kiyosaki of the book Rich Dad Poor Dad, is to buy quadplexes or 4 home units attached. Usually you can find homes like these for under $150-200k and you can rent each unit for $650-$800 a month. This beats any home rental, however some of these properties are in less desirable neighborhoods and some are in better neighborhoods. What Robert Kiyosaki states is that when one unit is empty at least you do not have 100% vacancy rate as you do with a home, but 25% vacancy rate and can upgrade that vacant unit with paint or new carpeting and raise the rents on the next tenant.

The best areas for rentals are the areas that are close to the strip or along a freeway so there is easy access to get to the strip where most people work, so maybe Southwest, Henderson, Summerlin, Green Valley, or along the Summerlin Parkway and I-95. Some people also purchase out near Nellis Air Force Base.

The first step is to narrow down your search criteria to the location, size of home, bedrooms, bathrooms, garages, etc. Then find a house that you like. Once you find the house that you like, we can help you by pulling the rental rates in that community and also how much homes in that neighborhood usually sell for. This way you can find your rate of return. Once you have narrowed down the home, our Buyer’s Agents can go and videotape the property for you, so you do not have to fly down here.

Do not wait too long, because as recent Las Vegas news articles have shown, home sales in Las Vegas have been picking up with prices remaining stable. Many desirable homes have multiple bidders and are snapped up almost immediately.

In addition, if you are purchasing in cash, we have a team of people who can assist you at the Trustee's Auction so you can purchase this or similar properties for about 20% less than market values.

If you like this answer, please give me a thumbs up!

Sandy Van
Attorney, Broker-Salesman, Realtor
Realty Executives of Nevada
The Van Group
(702) 334-2488
sandy@vangrouprealestate.com
http://www.vangrouprealestate.com
1 vote Thank Flag Link Sun May 15, 2011
I would call 3 to 5 property management companies, managers that do not work as a sideline for realtors, and ask them what kind of rent they are getting for 3 bed, 2 bath houses, and it what areas of Las Vegas do the find the easiest to rent. You then can look for the lowest price 3 bedroom houses in areas they think are the easiest to rent. If you want my exact locations with 35 years experience and a great mangement company,
email or call.


David Cooper..Las Vegas Foreclosure Investor in Bank Owned REOs with Huge Cash Flow. FREE daily list.
email davidcooper@lasvegaswinner.org or Call +1-7024997037
1 vote Thank Flag Link Fri May 13, 2011
You need a realtor with property management experience to give you a case by case answer because while many realtors can sell you a nice house, not everyone can make the calculations to see whether it is a good investment. You need to understand what theings like NOI and ROI are (Net Operating Income and Return On Investment) and be able to do simple Cap rate calculations. Does your agent have a feel for what the average rent for that jhome will be and are you taking into account a vacancy rate? What about taxes, repairs, upgrades?
There is a sweet spot in the market where you maximize returns versus outlays, make sure your agent can calculate all these factors.
1 vote Thank Flag Link Fri May 13, 2011
Condos with HOA's do make sense, but only when you can guarantee tenants. With tenants they produce, without they have higher holding costs... Hence the importance for a good property management company which can maintain occupancy.
0 votes Thank Flag Link Sat May 5, 2012
Copy delete paste switch post and cash again is King; financing at 4% is free money, you do need cash, employment, and credit for financing, so it's not for everyone.

Also, most condos in Vegas are not financable because of owner occupancy ratios. And where you can finance condos, you can't rent them out :)
0 votes Thank Flag Link Sat May 5, 2012
Aaron. Actually there are really few choices if you are looking to maximise profits. And the competition for decent properties is leading to multiple bids and higher prices. If you have $80,000 Cash, we can possible get you a great foreclosure deal on a house. We find condos with HOA don't make sense


DAVID COOPER Investor with Buyers Agent License at Since 1917 Realty 702-499-7037
For the latest Las Vegas News follow us on FACEBOOK http://www.facebook.com/davidcooper
0 votes Thank Flag Link Sat May 5, 2012
Cash is king with condos... They are not financeble. Many of my investors finanance and this is easy... Let the seller know that the ales price is not contingent upon the appraisal.

Also, every single propery must be analyzed separately... 1 bedrooms have the highest return if you do it right, but so can $100k homes if you know what ou are looking for.

I say, your money is Roth more today than tomorrow... Ask any accountant. So if I can buy a condo for $50k for cash, and I believe the economy will double in 5 years, I'll sell it for $60k+ plus the net income I've made over years of renting...

Or I can finance a house for $100k with 30% down ($30k), have a loan with $500/mo payments, rent it for $1100 / mo, net $500 / mo, then expect it to double in 5 years, and resell for $200k+, and make $100k of the sale...

What do you want, a final net return of $30k or... $100k. Cash is king, financing is the queen; especially with these 4% interest mortgages, it's like candy for smart rich babies.
0 votes Thank Flag Link Fri May 4, 2012
I specialize in investor properties and property management. I work with the owner of Souza10.com, Jim Souza, and we truly are a turnkey investor service. I search daily to find the best deals, go in and give honest and accurate condition reports, handle all the repairs and get renters in the property as soon as possible wasting no time. We have online account management tools that shows you when the rent was paid when it’s deposited into your account with detailed descriptions of all expenditures. I would recommend you use an agent and broker that specialize in investment property and property management. Other company’s say they have “investor services” and hand you reports and data sheets but they don’t do it all from start to finish they end up handing you off to someone else for the most important part of your investment the maintenance and management of your investment ( the part that makes your money ).
I purchased my first property when I was 21 with $500 down and have been buying and selling residential and commercial property most my life, trust me you don’t want to learn the hard way about “who to work with” when it comes to long term investment real estate.
Jerry Stepke
Souza10.com Realty
7780 S Jones Blvd. Ste 104
Las Vegas NV 89139
Direct (702) 808-4888
jerrystepke@yahoo.com
0 votes Thank Flag Link Thu Apr 26, 2012
Rentals are in high demand and inventory is low..This is the time to get that $90,000 house 3+2 in a good area and collect $1000-$1100 a month rent.




DAVID COOPER Trulia Voices INVESTOR-BUYERS AGENT
VIP Level 3 Congratulations! You're a Level 3 VIP
CALL NOW! 702-499-7037
email: http://www.facebook.com/davidcooper.lasvegas
Since 1917 Realty & Property Management - Jay Rosen,Broker 702-739-8820 - Yesterday at
0 votes Thank Flag Link Thu Apr 19, 2012
Aaron,

Cash always puts you in a better position, but even with cash you are competing with thousands of other cash buyers/investors. It's not easy to get your offer accepted these days and you need an experienced agent to get your submitted at the front of the pack. I am currently working with many foreign investors just like yourself looking for great income producing properties. I would be more than happy to help you find a great investment. Call or email me anytime with any questions you may have.

Graham Irving
Province Real Estate
702-491-0709
girving@provinceadvisors.com
0 votes Thank Flag Link Thu Apr 19, 2012
How does 15% ROI on a $90,000 SFR house sound?




DAVID COOPER Trulia Voices INVESTOR-BUYERS AGENT
VIP Level 3 Congratulations! You're a Level 3 VIP
CALL NOW! 702-499-7037
email: http://www.facebook.com/davidcooper.lasvegas
Since 1917 Realty & Property Management - Jay Rosen,Broker 702-739-8820
0 votes Thank Flag Link Wed Apr 18, 2012
Dear Aaron, there are a lot of choices out there true, but not all of them fit in the criteria you are looking into, the most important is to find a property that would be within the budget that you want to spend, in an area that you would like to live and that has all the amenities on your wish list or close. Even though you are buying as investment but it should cater to prospective tenants that think like you do.
as far as if it's a good thing to invest in the current market and if the income realized is good, here are some toughts, as per many experts in the field the prices are all time low since 1997, and stable with a little spikes here and there not because the prices are going up yet but lower inventory.

If your budget is max 75000 you can buy a condominium that would bring you gross yearly aprox 9000 minus expences that could vary from 3500 to 4000 inclusive (propertyTax, HOA fee, Property Management fee,and insurance) excluded your income tax.

if your budget is max 150000 then you can buy a SFR that would bring you aprox 15000 minus expences that could vary from 4500 to 5000 inclusive (propertyTax, HOA fee, Property Management fee,and insurance) excluded your income tax.

I hope I did provide an answer to your question
0 votes Thank Flag Link Tue Apr 3, 2012
Aaron: If you buy a below market Bank Owned Foreclosure, and get market rents, your return in 3 years should be closer to 20% ROI. The sales on houses in Las Vegas is at a five year high, rents are holding steady, and prices of homes are extremely undervalued. Check out the Free REO list

David Cooper..Las Vegas Foreclosure Investor in Bank Owned REOs with Huge Cash Flow. FREE daily list.
email davidcooper@lasvegaswinner.org or Call +1-7024997037. not a real estate agent
0 votes Thank Flag Link Sat May 14, 2011
Thank you all vey much for the professional advice! I intend to buy and hold the properties for at least 2-3 years. My goal is to achieve around 10% ROI (assuming zero funding cost). Not sure if I am just too optimistic.
0 votes Thank Flag Link Sat May 14, 2011
Hello Aaron,

There are so many different options for you in th SFR market. How long are you intending to keep this/these rental properties?

Penny O'Brien with Simply Vegas
702.321.9383
http://www.PennysProperties.com
0 votes Thank Flag Link Fri May 13, 2011
There are too many factor involved into an investment property and not enough space to analyze all of them, the best way to handle this is to sit and discuss the matter face to face.
Let me try anyway, to briefly answer your questions in a chronologic way.
1) Yes cash can and will put you in a better position for good deal not necessarily for the purchase price part of the deal but for the time needed to close, closing costs and more. A cash buyer that can close quickly is always king, particularly in case of bank owned homes.
2) Have you considered condo apartment? Way less work to manage them and higher return, specially if you rent them furnished. (I own few of the myself and I will be more than happy to get into detail with you if you so wish.)
3) High rental yield does not necessarily means best return in your investment. You may get an high yield but a lower sale price when and if you decide to sell...... therefore you must sit with an expert (ME OF COURSE) and start a game plan to determine lent of your investment, rent to own possibilities, net return of investment, future sale of the property and management of the same, operating capital and more.

Please contact me direct at (702) 528-6422 or e-mail me at info@LasVegas2Sell.com

Professionally....
Michelangelo Liotine
RealtyOne Group
0 votes Thank Flag Link Fri May 13, 2011
Aaron, First and foremost you need a professional that understands the market and can guide you through the process of buying a home. Send me an email to talk about your criteria.

Bill Johnson
Horizon Realty Group
702-553-6543
0 votes Thank Flag Link Fri May 13, 2011
Start searching the Las Vegas "live" database of properties here:http://lasvegasrealestate411.las.mlxchange.com/

702-446-7812
0 votes Thank Flag Link Fri May 13, 2011
Yes you do have good choice because you are cash buyer.In real estate location, location is very important finding a house good area you'll have easy to rent and home value will go up fast. I lived here 34 years and I've been my business 9 years. I can help you all the benefit you look for. my #702-271-3138 Sung Kim
0 votes Thank Flag Link Fri May 13, 2011
Aaron,
Narrowing down your choices is first determined by what is your exit strategy on the property. Do you wan to to hold it for 1, 2, 5, 15 years? Or never sell. What amount of ROI are you looking for? Many investors might say "As much as I can get" to that questions but sometimes the highest ROI dictates neighborhoods and/or areas they don't prefer.
Also, going over all the expenses, in writing, is crucial so you can be realistic about your return but it also helps eliminate properties because they do not meet your goal.
I know you get an invitation to meet from everyone who responds, but if you call we can have an intelligent discussion about how to smartly move forward in getting a great investment property for you.
Chris Dowlen
Keller Williams Realty
702-806-1764
Web Reference: http://www.teamdowlen.com
0 votes Thank Flag Link Fri May 13, 2011
Hi Aaron, you have some good questions. Yes, there are thousands of possible choices, and the challenge is to find the right property. You're right it boils down to narrowing down the search and defining the parameters that will give you not only the highest rental yield but also an idea about the rental demand in specific areas of Las Vegas.

If you would like to see sample properties and the research that we've done for investors send me an email at larose787@gmail.com

All the best!
0 votes Thank Flag Link Fri May 13, 2011
I own rental properties in Las Vegas. You may only be able to buy with cash depending on your circumstances. Cash will normally allow you a competetive edge when making Offers on properties. There are many other issues and factors involved in purchasing investment properties in Las Vegas. Please feel free to contact me and I will be happy to help you. Don Brown (702) 480-6083
0 votes Thank Flag Link Fri May 13, 2011
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