Home Buying in Las Vegas>Question Details

Al, Home Buyer in Canada, KY

What areas in or around Las Vegas offer newer homes that provide positive cash flow rentals?

Asked by Al, Canada, KY Thu Jun 5, 2008

A friend and I are experienced Canadian investors that know you cannot time the very top or bottom of the market. We do however expect the property to better than carry itself with a maximum 25% down payment while we wait for the market to recover. What areas of Las Vegas can this be achieved and what is the current vacancy rate?

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Hi Al,

If you are a foreign national, the US lenders are requiring a minimum of 35% down payment on loans.

That being said, it is very easy to find quality rentals in high demand areas that will carry a break even or positive cash flow. Vacancy rates are running between 6% to 9% depending on the area and price point. Myself, I tend to favor small single family homes in good school zones which rent quickly. I also tend to keep my rents on the low side so that I can pick and choose my tenants. It is much less expensive to get a good tenant in at a lower rent - they tend to stay longer and keep the property in better condition.

Also I think it is an excellent time to be purchasing property and I am putting my own money where my mouth is. :) Our inventory is starting to shrink and the past two months our sales have been higher than at any time in the past year. I have over 25 years of local experience, so if I can be of assistance, please feel free to call me at 702-596-7821.
0 votes Thank Flag Link Tue Jul 1, 2008
Al, Summerlin and Henderson are very popular areas in Las Vegas.
I would start there and travel around these communities. If I can help, let me know. Also, lenders only offers second homes to foreign nationals with 35-45% down and the down payment hast to be seasoned to 30 days in a United States bank account. I have a French investor wanting to buy and this is making it hard.

Good Luck,
Bill Johnson
702.553.6543
0 votes Thank Flag Link Sun Jun 8, 2008
Al, the overall rental vacancy rate is about 7%. And it is lower for SFR and higher for apartments and condos. Why? People are choosing to rent homes over apartments because the rent isn't that much different any more due to an increased supply of investor-owned homes in the rental pool.

You can usually find cash-flow positive properties with 25% down and $200k or less purchase price. Or higher in price with special amenities such as being on a golf course which demands a premium in rent.

I noticed you said maximum of 25% down. With the tightening of the money supply for loans and the fact that you are a foreign investor, I don't think you will find a loan product in the States that will allow any thing less than 20% down for your situation. Let me know if you some further guidance or would like to buy.

Thank you.

John A. Brassner, MBA, Realtor
Windermere Summerlin Real Estate
Residential and Commercial
Cell Phone: 702-808-9816
Fax: 702-995-0488
Email: john@john4realty.com
0 votes Thank Flag Link Thu Jun 5, 2008
There are many areas of Las Vegas that provide great positive cash flow on investment properties. As an REO Aquisition Specialist and Owner of Vegas's Largest Rental Search Website, http://www.lv-hr.com, we are finding that fairly priced rentals in the Henderson, Nortwest and Southwest are finding quality tenents in less than 30 days. The rents have come down slightly to become more competitive, but the vacancy rate is not very high at all. We have many familys that lost their homes because they couldn't make the $3,000 mortgage payment, but a $1,600 rent payment is no problem. Great people, just made poor buying and financing choices. I can be reached at thereoking@cox.net if you would like further information on the Las Vegas Rental and REO market.
Web Reference: http://www.lv-hr.com
0 votes Thank Flag Link Thu Jun 5, 2008
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