Home Buying in 89109>Question Details

Sid J, Home Buyer in 89109

Las Vegas real estate investing!! SFR VS FOURPLEX...or dont invest at all. Sid

Asked by Sid J, 89109 Tue Feb 21, 2012

I am looking to get some advise on investing in Las Vegas. I already have a SFR that i bought last year and is rented out. I was looking to buy a fourplex this year or two more SFR. I live in Los Angeles so i ll be an absantee landlord. Which one would be more advisable? An SFR or a fourplpex, or not investing in Vegas for 2-3 more years?

Thank you. Sid

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The Wall Street Equity Firms have invested 5 Billion Dollars in Single Family Homes for Rentals. They have done all the research.

David Cooper invested in Las Vegas since 1994
0 votes Thank Flag Link Mon Apr 8, 2013
To the unbelievers "a cash cow" Donald Trump and Jun say so... good day folks..
0 votes Thank Flag Link Mon Apr 8, 2013
Buy a single family residence. Fewer problems with only one tenant to possibly complain.
0 votes Thank Flag Link Mon Apr 8, 2013
Investing in a multi family unit can be a chore. These types of units are usually older and require more maintenance. If you already have a SFR rented you might want to repeat that. You already know what the ups and downs are. Now is the time for invest and rent .
0 votes Thank Flag Link Mon Apr 8, 2013
The upkeep on 4plex is higher than buying 4 seperate condo's. There are $50,000 2+2 condos in really desirable neighborhoods that will get you better rent than 1 four plex, and if you focus on Fannie Mae foreclosures, there is 10% down for investors.
0 votes Thank Flag Link Sun Apr 7, 2013
question 4 you. The %10 down is that limited to fourplex's. What about 10 unit buildings?
Flag Thu Dec 31, 2015
Please email your request FOR CONFIDENTIAL INFO SIMPLE TECHNIQUES requires confidentiality agreement 702 366 1554
0 votes Thank Flag Link Sun Apr 7, 2013
Please contact me tomorrow to discuss some options at 702-586-1485. Any time after 9am
0 votes Thank Flag Link Tue Apr 17, 2012
Can u find me a house either two story or single story with atleast on bedroom and bathroom down stairs with a pool in the back yard with extra space to spare and a two or three car garage in the area between 89074 through anthem staying under 230,000? Also need to find a lender
0 votes Thank Flag Link Tue Apr 17, 2012
Right now a single family home is your best bet as most of the 4 plexes in LV are quite old and in need of much repair. Your rent would actually be higher per month on two good single family home properties vs. 1 very old 4 plex which would bring in very low rent. The best time and place to invest anywhere is now in Las Vegas, so don't wait. Prices are going up as there are very few foreclosures coming to market now with all the new state laws. Inventory is going down which means that prices are going to be going up. Myra Gouger / 702-858-9311 / myra_gouger@yahoo.com
0 votes Thank Flag Link Tue Feb 21, 2012
SID. Why not check out the really nice Bank-Owned Foreclosure houses you can purchase for under $90,000. Then you can get a better idea why there were almost 4000 sfr sales in Jan and prices are moving up and the smart money is investing in houses

Since 1917 Realty 7024997037 35 Years Experience

0 votes Thank Flag Link Tue Feb 21, 2012
No need for long answer. We been here since 1976 and in real estate since mid 80's. We currently manage 325 homes/condos for our investors. We know our business. Stick with SFR and it's a great time to buy. Four plexes are getting old and costs for repairs are going up all the time. You'll also have better clients with SFR. Even if market goes down a little more you'll still do very well in the long run. We will share our investment strategy over the phone or private email.

Matthew D’Ercole
One Source Realty and Management
Cell - 702.501.0973
Website - http://matthewsellslasvegas.las.mlxchange.com
0 votes Thank Flag Link Tue Feb 21, 2012
Hello Sid,
This is going to be a lengthy answer, but the quesiton brings up a need for a more complex answer. Here is an important statistic. Out of 176 4-plexes currently on the market today, only 20 were built after 1988. And here is another. In 1992 there were only 750,000 people in Las Vegas. In 2010 it is estimated that there were 1,951,269 in the Las Vegas Metropolitan area. At the peak of the Real Estate feeding frenzy, there were about 2.1 million people. This suggests that two-thirds of all residences, including multifamily were built after 1992. Now reconsider the stat that shows that about 10% of all 4-plexes (currently on the market) were built during that same period.

So, now consider what you are competing with as a 4-plex owner. A 4plex does not have a pool, a workout room, a gate community, park, is in an older neighborhood, has more deferred maintenance, and because of the competition with well established and embellished apartment complexes and spacious condos turned into rentals, will likely have to rent for less, and will probably attract tenants who have credit issues.

So, here is the bottom line. If your concern is about ROI (Return on investment), a single family may be a better play for you. A 4plex may work, but if your exit strategy is as important or even more important, consider this; a 4-plex's value is commensurate with the amount of rent you can charge. If rents stay the same or go down (due to competition), your 4-plex is not going to go up in value either. Where as a single family home has more intrinsic if not universal value.

If I can help, please feel free to call.

Best of luck, and thanks for reading.

Steve Matthews
Prudential Americana
0 votes Thank Flag Link Tue Feb 21, 2012
I relocated from Los Angeles 14 years ago and have many clients from there. I just sold a house to a family . They live in Tarzana CA. I helped them to do some improvements with my crew, rented the house for $1650 a month ( Southwest with a pool 2004 sq. feet ) and can do the same for you if you choose to work with me. I do this for all my clients out of state. Also I have a list of REO fourplexes from $99000 to $189000
Kind Regards,
0 votes Thank Flag Link Tue Feb 21, 2012
the units for $99000, what can you get for rent?
Flag Sun Apr 13, 2014
I think it has been well established by most of the previous answers that an SFR is a more exciting investment opportunity than a fourplex or triplex or duplex. So, I want to talk about the timing part of your question regarding, “or not investing in Vegas for 2-3 more years?”

Oh my goodness SID. We may never see another buying opportunity in the residential real estate market like the one being offered today as investors and buyers. Let’s just crunch the numbers.

I just sold a single family resident that we will be renting to a tenant for ~$1000/mo. The sold price was $65000. So, 12/65 = 0.1846 or 18.46%. WOW! No HOA dues (because it is a more mature neighborhood), and no solvency issues (because it is not a condo complex). So, when it comes time to sell (after the market recovers); your buyer will be able to qualify with their lender. Put a good home warranty plan on the home, and even your maintenance expenses can be minimized. After adding Property Management costs and Insurance costs (even including the Home Warranty plan), your still going to net a 15% return.

Given reasonable rent increases over the next 5 or 6 years, and you should have recovered the original purchase investment from rent alone. After that, it’s all gravy. Presumably, when it comes time to sell the property, you will be able to “at least” get your original amount invested back. More likely, you will get some appreciation on that property sale price. Now (with any kind of appreciation at all), an outstanding investment has just got better.

I think the story for buying today is so compelling today that any buyer who has the opportunity to buy today in today’s real estate market “must” buy, or be prepared for some very regretful memories. We are selling real estate at 1970 prices, that phenomenon is not sustainable. Just like the 2006 real estate bubble was not sustainable during the manic times of our real estate market cycle; these incredible depressed prices we are experiencing today will not last forever.

Give me a call and let’s get your new SFR today, while the market is still in “pre-recovery,” mode.

Robert K. Peddicord
Real Estate Consultant
Prudential Americana Group, REALTORS®
Direct: (702) 218-3974
E-Fax: (702) 317-3371
Email : robertp1@americanagrp.com
Web : http://www.peddicordconsulting.com

871 Coronado Center Dr.
Suite 100
Henderson, NV 89052
0 votes Thank Flag Link Tue Feb 21, 2012
Hey Sid,

Personally and professionally, I recommend 3BR SFRs for their marketability to families. Position your investments in areas with great public schools and you'll likely secure a good tenant.

Now is a smart time to jump in the market and secure your investments. Prices are hovering at the bottom, and even if we do decrease a bit this year, you will likely see appreciation over the next 2-3 years.

All the best,
Michael Coxen
(702) 339-8891
Web Reference: http://www.michaelcoxen.com
0 votes Thank Flag Link Tue Feb 21, 2012
Hi Sid!

My answer is peculiar to Vegas, so don't try to apply it in another city. The fact is that Vegas doesn't have a lot of 4-plexes, and the ones we have are not newer construction. In the interest of minimizing your maintenance and renovation costs, I think you're better off with a couple of well placed SFR.

The Case-Shiller and Corelogic numbers don't show it yet, but I'm seeing available inventory shrink and prices starting to rise, especially on REO and a little less so on traditional listings. Prices on short sales have barely budged, and changes in tax law at the end of the year make these highly motivated sellers -- *if* you have the patience for it.

Let me know if I can find some great investment properties for you. I have experience with investors, and I'm SFR certified.
0 votes Thank Flag Link Tue Feb 21, 2012
It depends on your "taste" for investments. One thing to consider as an absentee landlord is keeping 4 tenants at a time in one property. 1 difficult tenant can keep the other 3 units vacant for long periods of time. There are investments here that work for everyone, especially when you compare it to letting your money sit in the bank. Let me know if I can be of any additional help.

Steve Mikrut
702.630.6239 cell/text
Web Reference: http://www.stevemikrut.com
0 votes Thank Flag Link Tue Feb 21, 2012
SID The 4plex investment was the first diaster in the las vegas real estate downturn. The upkeep was higher than sfr, the turnover in tennants is higher, and the qulaity of tennant is lower.
Remeber, a well located SFR will demand premium rent from familys who desire good schools and have pets. The rent to purchase ratio is much higher, and unless you are buying a newer forurplex, you repair costs will eat you up.
My 35 years esperience and the propety management company with over 2000 active rentals will not touch a 4plex.
When you can buy a 3+2 house for $80,000 in a good location and get 900 a month rent, I go for the house.

at SINCE 1917 REALTY 7024997037

0 votes Thank Flag Link Tue Feb 21, 2012
The 10 Most Popular Housing Markets

Posted by GLOZAL on February 21, 2012 at 6:24pm

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9. Orlando, Fla.
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10. Las Vegas, Nev.-Ariz.
Median list price: $121,500


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Exit Realty "The Infinity Group"
Private Fax: 702-948-5106

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0 votes Thank Flag Link Tue Feb 21, 2012
The type of investment should be a small factor; the cash-flow from the investment should be your deciding factor.
0 votes Thank Flag Link Tue Feb 21, 2012
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