Jim, Real Estate Pro in California

Want to buy a starter home (3 bedrooms and 2 baths) in a good school district as an investment. I am looking

Asked by Jim, California Wed Jul 30, 2008

at green valley or summerlin. Can someone tell me how much rent can I expect for a starter home in these two neighbourhoods? And what is the rental vacancy rate there?

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5
Jim:

That is a very good question. According to the University of Nevada Las Vegas's Center for Business & Economic Research, there are a total of 426,761 rental units that are single family residences in the valley. According to their research, there are currently 11,855 single family residences available for lease. I will attach the link for you to view.

http://cber.unlv.edu/housing.html

How much rent you can expect will vary by location (even inside of good communities like Henderson & Summerlin) size, bedrooms,etc. Also, a trait that gets homes rented faster, and for more money, is if they have a pool or not.

If you need assistance in getting a good value on an investment property, please take a look at this website

http://www.VegasUnder200K.com

You can look by area, zip code, etc. Feel free tto contact the agent, she is very good at here job, and can look up homes for you in any price range you desire.

Tony DePasquale
2 votes Thank Flag Link Fri Aug 8, 2008
Jim,

Take a look at Las Vegas rental statistics by area here: http://activerain.com/blogsview/595236/Las-Vegas-Rental-Statistics

Median price per square foot is close to $.79/sf/month in both areas. Take a look at the days on the market to get an idea of the vacancy rate. Looks like close to 5% assuming a 1 year lease with turnover every year. Keep in mind, these are median values so proper pricing combined with market timing can help reduce the vacancy rate. (By market timing, I mean you probably wouldn't want to approve a 6 month lease starting in June.)

The statistics are all median values on single family detached homes and patio homes leased within the last 12 months. They are between 1400 to 2800 square feet, built after 1996, without pools and without furniture. Age restricted communities have not been included in these stats. For more information about a specific property or neighborhood stats, click on my profile to contact me directly.

btw, I think Mark meant 40% of the homes on the market are currently vacant.
0 votes Thank Flag Link Sun Aug 10, 2008
Is single family home vacancy rate really at 40%? This is quite high. Where can I find the rental vacancy statistics for single family home for each neighbourhood?
0 votes Thank Flag Link Wed Aug 6, 2008
Hi Jim,

First of all, congratulations on your decision to invest here in the Las Vegas / Henderson, NV area. With 150,000 jobs being created in the next 3 years in this area, it is certainly a decision that will pay off.

I live in the Green Valley area of Henderson, so I can tell you all about the tremendous opportunities specifically for investors that this area is offering. I have quite often looked for renters and investors alike here, and rentals right at that $1400-$1800 range are red hot. If there would be considered a "surplus," which it hardly is, but there is extra inventory in the Sun Cities (Age Restricted Retirement Communities), but everything else is moving rather quickly.

Keep in mind, "moving rather quickly" is going to be dependent on location and condition. I would be more than happy to pin point the properties that will offer the best circumstances for your investment in our area.

All the best,

Mike Dobranski, REALTOR®
Prudential Americana Group, REALTORS®
Las Vegas / Henderson, NV

702-370-3521
Mike@PrimeRealEstateLasVegas.com
http://www.PrimeRealEstateLasVegas.com
0 votes Thank Flag Link Wed Jul 30, 2008
Hi Jim,
Good questions. As of this morning, you can get a 3/2 in Summerlin (bank-owned) for about $185,000 and higher. Rents vary, but figure between $1,200 and $1,500/month depending upon how quickly you want it rented out and the size and amenities the home has.

I don't have stats on what rental vacancies are, but single family home vacancies are at 40% right now. Today, there are eight 3/2 rentals in Summerlin ranging from $1,150 to $1,395 and they've been on the market for an average of a month and a half.

In Green Valley, prices start at $160,000, and there are 3 rentals ranging from $1,295 to $1,595/month.

Something else to consider is what it will cost to make these homes livable, and what your competition is. In Summerlin, in addition to HOA, taxes and property insurance, you also have a SID fee, which runs about $400/year for approximately 10 years. Add that to your property management fees so that you can accurately gauge what your cash flow will be.

My answers are based on today's MLS listings, but I'd like to help you with your specific criteria. Please feel free to visit my website when you're ready to move forward. I wish you the best of luck!
Web Reference: http://www.MarkKarten.com
0 votes Thank Flag Link Wed Jul 30, 2008
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