Investor Central

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Monday, January 25, 2016

Investing with a Loan in Las Vegas

Here are some example properties separated by category. Under expense, I'm including PITI, HOA (homeowner's association fee), and management fee. If you are interested in a property, I will of course break things out in much more detail. For this preliminary email, I wanted to give you a range on the numbers you can expect for different property types. All of these homes are usually negotiable on price, as well (which would lower your monthly mortgage expenses.) Also when you are considering a specific property, I always go to preview for you, get photos, video, and a full report on my visual walkthrough of the property. That includes if it needs any cosmetic work (like paint or carpet) and the projected costs based off our past experience. Should a property need any work, we also handle all of that for you as well after closing. It's really designed to be a "full service" operation to minimize the amount of time you have to spend to a bare minimum. 

I am basing these off 4.75% interest rate, 30 year fixed rate mortgages, "average" insurance rates, and specific property tax and HOA information for each property. So these are educated estimations, and certainly not firm numbers (which will vary by the deal structure and particular investor). 

Higher-end properties:
8972 Shale Valley: (Located in the Henderson area)
List price $327,500. Estimated total monthly expense $1696/mo. Estimated rental income: $1950/mo. Cash flow $254/mo
2294sf, 4 bedrooms, 3 baths, pool/spa.
737 Baldurn: (Located in Silverado Ranch area, which is where I live).
Listed $265,000. Estimated $1366/mo total expenses. Estimated rental income $1600/mo. Cash flow $233/mo
1963sf, 3 bedroom, 2.5 bath.
2525 Pastis (Located in Anthem, popular area in Henderson.) 
Listed $350,000/ Estimated $1832/mo total expenses. Estimated Rent: $2100/mo. Cash flow $268/mo
2600sf, 4-bedroom, 3 bath, pool/spa

Mid-range properties:
10492 Kepler Cascades (located in Southern Highlands, centrally located and South of the LV Strip)
List price $244,500. Estimated total expense $1266/mo. Estimated rental income $1500/mo. Cash flow $234/mo
1996sf, 3 bedrooms + loft, 2.5 bathrooms
8132 Spruce Meadows (northwest Las Vegas)
List price $219,000. Estimated total expense $1100/mo. Estimated rent $1300/mo. Cash flow $200/mo
1712sf, 3 bedrooms, 2 baths
4337 Desert Haven (North Las Vegas)
List price $219,000. Estimated total expense $1211/mo. Estimated rent $1400/mo. Cash flow $189/mo
1714sf, 3 bedrooms, 2 baths, gated community 

Some information on how I search for investment properties:

Don'ts that I try to avoid for my clients. Not necessarily just to maximize rentability but also I am always thinking about "resale" for my investors and I factor in things that I know would hurt you on the back-end when you sell, even though that may be years down the road: 
1. Homes that have non-functional or lots too small (typically less than 3,000sf for a single family detached home)
2. Homes that need significant amounts of upgrades (unless priced accordingly and client is interested in renovations)
3. Homes with low ceilings (lower than 8 ft)
4. Homes that back up to power lines 
5. Homes that back up to major streets 
6. Homes that have dated kitchens 
7. Homes with small bedrooms and/or small master bathroom 
8. Homes with poorly done or clearly unpermitted additions/changes
9. Homes with no privacy in the backyard or neighbors directly overlooking the backyard

1. Depending on price point, want to find a home that has upgrades and/or something particularly attractive that would provide that "extra" interest on the rental market. We can rent anything but the nicer the home, the stronger the quality of tenants that will apply and the better the rent rates in the long run. 
2. Open concept floor-plans 
3. Tile and hardwood floors are always better than carpet for a rental. (Carpet doesn't last a fraction as long as tile so if we can get the right flooring from day one, it will save you money over the long run) 
4. Landscaped backyards or yards that present well
5. GOOD Condition Pools are a big plus, particularly on higher-end homes. 

Owner & Director of Investor Relations
The Cunningham Group
RE/MAX Advantage
(702) 895-7777 Office
(702) 823-0840 Desk
(877) 579-1747 Fax


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