There are definitely opportunities for 8-9% returns. That stated, the Vegas and Henderson markets are experiencing an significant spike in home prices due to an artificially low supply of homes on the market. As a result, we have seen prices of home go up from 10%-30% or more over the past 8-12 months.
This is due to a Nevada Assembly Bill that basically stopped banks from forclosing on homes since October of 2011. Now there are over 75,000 (likely closer to 100,000) homes in the Vegas Valley that will be foreclosed upon over the next few years. These foreclosures and many more short sales will hit the market later this year and significantly more in 2014.
Once the foreclosures begin in earnest, we may see home prices drop by 10%-30% depending on neighborhood. The pressure to drop prices will come as the inventory on the market grows. Right now there are less than 4000 homes on the market (less than 4-6 week supply). Prior to Oct 2011, theres were closer to 12,000-15,000 homes available.
I do not have a crystal ball, but the basic rules of supply and demand would indicate that next year will make for better home prices. That stated, good returns on investment can still be found in this very competitive market.