Property Q&A in Las Vegas>Question Details

Tigga, Other/Just Looking in 10305

Condos for 40k, why are people not buying these and renting them out for profit?

Asked by Tigga, 10305 Thu Mar 12, 2009…

I dont live in Vegas and I dont know the area, but for 40k!! Why are these not selling?

Help the community by answering this question:


I see a lot of condos in 39-50k range are banked owned. How much work will be needed to fix up these properties?
0 votes Thank Flag Link Mon Mar 16, 2009
The current market rent for the unit you showed above is right about $750 per month.

I'm not sure if you mean HOA due's, these are $133 per month. If you mean costs for repairs to the unit I normally budget 4-5% of the monthly rent into a slush fund for any repairs.

Many people are buying these inexpensive units with cash, but you can still get financing. You will need about 30% downpayment if you are buying a investment property.

Let me know if I can help you any further.

Ron Johnson
Elite Realty
0 votes Thank Flag Link Fri Mar 13, 2009
How much can a condo like this rent for?

What is the avg maintence fee for these type of condos?

Do people usually pay in cash or finance?
0 votes Thank Flag Link Fri Mar 13, 2009
Many of these properties are selling. I am working with several investors who are purchasing investment properties at dirt cheap prices. I am working with one client who is trying to buy 10 condo's in the $40k range and rent them out. The numbers now make sense for investors to get back into this market and have positive cashflow properties with good prospects for long term appreciation as well.

I think we are in a great time to acquire investment properties. I just purchased a three bedroom, 2 bathroom single family home for $54,000 that I am going to rent out. The opportunities that exist in our current market are amazing. I do agree with mike that fear is a big factor in why these deals are still out there. All the better reason to jump in before the competion does and before the prices start to head back up.

Ron Johnson
Elite Realty
0 votes Thank Flag Link Fri Mar 13, 2009
There are quite a few properties available now in this price range, and not everyone has the $40K to drop on a property. Also, many people that do have the $40K are fearful of tying up capital in an investment and want to remain liquid. Personally I think it is foolish, but fear is the name of the game these days. A third factor is that there are so many unbelievable deals in our market right now, some people are going for the bigger properties because they can and have a much greater return on investment.

There really are some outstanding opportunities out there, aren't there?

All the best,

Mike Dobranski, REALTOR®
Keller Williams Realty - The Marketplace
Las Vegas / Henderson, NV

0 votes Thank Flag Link Thu Mar 12, 2009
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