Home Buying in 89149>Question Details

Ms. Chen, Other/Just Looking in New Jersey

What do you think for investors to buy in zip 89149,89129 area? How's cash flow? What's the typical rent? Easy to find quality tenants?

Asked by Ms. Chen, New Jersey Sun Apr 17, 2011

Help the community by answering this question:


Keep in mind that the median sales price is $120K and $123K for 89129 and 89149 respectively. Without knowing the actual expenses, or more specifics about your exit strategy, a quick and dirty estimate (using the "50% rule") indicates that you'd acquire a property at a 7% and 6.8% cap rate respectively (provided you didn't buy it at a substantial discount). If obtained with financing, then you'd most likely lose money via negative leverage. Yet, if you could acquire a property at somewhere between an 8% and 9% cap rate minimally, then you'd receive a decent, positive pre-tax cash-flow.
0 votes Thank Flag Link Mon Apr 18, 2011
Ms. Chen, I would suggest reading another post recently posted regarding transaction fees.

See http://=www.trulia.com%2Fvoices%2FHome_Buying%2FWhat_is_Transaction… target="_blank" rel="nofollow">http://www.trulia.com/voices/Home_Buying/What_is_Transaction…

There’s a lot of input on that page discussing the reasoning for agents to charge a transaction fee. I hope that helps.
1 vote Thank Flag Link Fri Apr 22, 2011
I see many answers to your question so there is no need to answer it again.So what I want to say is that I am able to purchase properties at the foreclosure auction for you. Our team can purchase, rehab and market the rental listing. If you want to buy and flip we can show you our profitable track record. I would love to talk with you.
Thank You
Suzie Marquardt
1 vote Thank Flag Link Sun Apr 17, 2011
Hello, Ms. Chen...

The more you understand a particular market, the more qualified you will be to make sound business decisions. Understanding current trends, including any changes in rents, mortgage rates and the unemployment rate, to name a few, enables good real estate investors to plan for the future.

Being familiar with specific markets allows investors to predict when trends are going to change, creating potentially beneficial opportunities for the prepared investor.

See our website for lots of info: http://lvpropertysearch.com/category/las-vegas-investment-ho…

See our video on finding tenants: http://lvpropertysearch.com/landlord-videos
0 votes Thank Flag Link Tue Aug 14, 2012
Hi, Ms. Chen. Perhaps this link will help you make the right decision: http://lvpropertysearch.com/las-vegas-investment-homes/las-v…
0 votes Thank Flag Link Tue Jul 17, 2012
Although I wouldn't call the practice of some buyer's agents getting their compensation via the buyer common, it does happen from time to time. I admit the first time an agent ever asked me this on a residential transaction was for a deal on a REO in LV. The request threw me; I originally thought that agent was trying to play me (as an outsider), so I moved on to some other deals. Yet, I followed up later with some other investors to see if they had ever encountered that too, and I learned what I'm sharing now.

Keep in mind that commissions are negotiable. Before signing anything, you might want to find out how your agent will get compensated. It's not that I had any problems with paying my agent, but I didn't want the bank to pass the buck (pun intended) to me on this.

Yet, that arrangement--although it's still not necessarily the norm--is somewhat more common in commercial.

Ultimately, whether or not the commissions are paid via the seller's proceeds from the sale, the buyer ends up paying for the commissions. So it's wise to price that into one's offer.
0 votes Thank Flag Link Fri Apr 22, 2011
Thanks David Cooper, who is your PM?
Thank you all for taking the time to answer my questions. Greatly appreciate it!
Another question: Is it legitimate for a buyer's agent to charge buyer a fee when a property is found? I thought agents get compensated from the seller's commision already.
0 votes Thank Flag Link Fri Apr 22, 2011
My Experienced, professional property manager seems to get me excellant tennants that rent for a long time.
Her fee is 10% and I never have any problems. I factor in the 10% on all my foreclosure purchases, and I still get positive csh flow and 15% ROI on 25% down

David Cooper Las Vegas Foreclosure Investor in Bank Owned Houses with cash flow. email or call for Freee List +1-7024997037 not a real estate agent
0 votes Thank Flag Link Fri Apr 22, 2011
can u send me properties with 15% ROI on 25% down - tigerprash@yahoo.com
Flag Wed Aug 22, 2012
Hello Ms. Chen,

Both zip codes are wonderful areas of the Las Vegas Valley. I just want to share with you that a lot of Las Vegas tenants are looking for great properties to rent and most don't have very good credit or really crappy credit. But, it doesn't mean that they won't be great renters. Penny

Penny O'Brien
Simply Vegas
0 votes Thank Flag Link Thu Apr 21, 2011
Great area for 3 bed 2 bath house with decent back yards. Renters with kids and dogs pay more and stay longer with back yards. My property manager can get $1200 to $1400 a month in rent and net you $200 to $400 a month positive cah flow. There are some government foreclosures with only 10% down for investors.
Las Vegas sales for March were over 3300 for SFR and my 35 years investing in Las Vegas tells me this is the best time for investors to get positive cash flow, low interest rates and potential appriciation

Dvaid Cooper Las Vegas Foreclosure Investor in Bank Owner REOs with Cash Flow. Call +1-7024997037
or email for Free list not a real restate agent
0 votes Thank Flag Link Mon Apr 18, 2011
Hello Ms. Chen,

I live in 89129, and have been in this area for over 10 years. I just love it! Property values have held better in some areas of Las Vegas than others. We have not had the decline that other neighborhoods have experienced. To answer your questions, there are many areas in Las Vegas that are great for investors, these areas inlcuded. A lot depends upon your goals and your criteria, This is where a great professional like myself can help you make a wise investment of your money. Rents can vary, beginning under one thousand and going into the thousands of dollars depending on the type of property, if it has a pool, etc, so there is not a typical rent. I can tell you, that it is easy to cash flow rental amounts higher than your loan, for immediate return on your investment. At Coldwell Banker Premier, we have an investor division. I have a matrix system that mathmatically calculates everything from cap rate to equity appreciation potential. Most out of state home owners use a property manager to find quality tenants, so I would refer you to my team of preferred property managers. If I may be of further assistance, please feel free to contact me.
Sincerely, Diane Varney 702.401.0307
0 votes Thank Flag Link Mon Apr 18, 2011
Ms. Chen, you may run into some temporary hurdles finding renters in the area who would need to commute on the 95 Freeway. A common objection right now will come from renters who will be commuting on the 95 Freeway.

There’s a lot of construction on the 95 N. The freeways is widening allowing for more lanes between Rainbow and the 215 Interchange. You may want to discuss with your property manager what their plans are for advertising a unit for rent knowing this will be a common objection right now. Once the construction is complete your renters drive into downtown shouldn’t be so much of an issue.

I don’t personally do property management, but if you need a property manager, I have a few to refer you to. Because so many homes in the NW were purchased by investors, it’s an obvious place for renters to look when searching for a home for rent.
0 votes Thank Flag Link Mon Apr 18, 2011
Zip code 89149 & 89129 are very good areas. Easy to rent and good cash flow.
The average rent for an 1800 + Sq. Ft. Home, is about $1400 monthly rent.
I have a renter that is looking for a home to rent in that specific area.
E-mail me with any questions at Vegasok@aol.com
0 votes Thank Flag Link Sun Apr 17, 2011
That area is in the Northwest part of the valley. The amount of rent will be deternined by the type of property you purchase. Singe story or two stor...y the sq. footage...number of bedrooms...subdivision and condition of the property will be determining factors to how much rent you receive. I own several rental properties so contact me if you have more questions...
0 votes Thank Flag Link Sun Apr 17, 2011
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