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Old 08-06-2010, 04:04 PM
 
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LOL, I put all crime for the last 7 days for the whole city. Run away investors, run away.
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Old 08-06-2010, 04:57 PM
 
11 posts, read 41,657 times
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Quote:
Originally Posted by kcoliver View Post
We own property in Lone Mtn area....Craig/Grand Canyon....small house 1254 sq ft....has been renting for 995 monthly. (89129 zip), Purchased 1 year ago for 93000 - had to put in about $7,000 to make it rentable. I believe this is a good return on investment, but I'm tired of dealing with management companies...(they charge 10%) and an empty house when renters move out. They (management co) also charge 1/3 of first months rent to find renter...ugh. I'm done! Expect to sell for $107000, which should cover real estate agent fees and break even. Think long and hard about doing long distance rental property.
Can I ask how hard it was finding a tenant, and how your tenant experience has been?

We fully plan on getting a property management co. to do all the dirty work so we can just collect a check every month. The one's I've interviewed don't charge while the property is vacant, so it would just be ~100/mo property taxes, $30/mo renters insurance, and a small mortgage (if I can't pay all cash). Then add $100/mo when it's rented. Profit would be at least $500/mo... keep the property forever... how can this go wrong?

Can't wait to find out what these neighborhoods really look like tomorrow...
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Old 08-06-2010, 05:10 PM
 
6,386 posts, read 11,910,331 times
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I get a sense you do not understand the concept of real estate investing. If you never plan on living in the house then if its ghetto or not is not really the concept you are focusing on. Ghettos can have high occupancy rates due to lower rents and can be decent options for landlords accepting Section 8. What you want to avoid are not the existing bad areas where the quality of the neighborhood is already priced in, but areas which are showing signs of potentially turning into ghettos because that is where you will run into some serious problems in regularly losing tenants and seeing property values and rents crater. On this standard I think your biggest risks are the houses in Spring Valley because until Vegas residents change their general mindset that newer and further out from the Strip housing is better, this area will probably have the hardest time keeping up.

If you want fairly easy situations where you won't get great cashflow in early years, but probably have a consistently good pool of renters to choose from and potential long term appreciation then I'd choose the houses to the south and west of the 215. This is where a lot of the future good jobs growth (ie. professional jobs) will come whenever Vegas gets to its new normal and that is usually the mark of good long term investment area.
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Old 08-06-2010, 06:19 PM
 
1,347 posts, read 2,451,833 times
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Quote:
Originally Posted by kcoliver View Post
We own property in Lone Mtn area....Craig/Grand Canyon....small house 1254 sq ft....has been renting for 995 monthly. (89129 zip), Purchased 1 year ago for 93000 - had to put in about $7,000 to make it rentable. I believe this is a good return on investment, but I'm tired of dealing with management companies...(they charge 10%) and an empty house when renters move out. They (management co) also charge 1/3 of first months rent to find renter...ugh. I'm done! Expect to sell for $107000, which should cover real estate agent fees and break even. Think long and hard about doing long distance rental property.
Yeah, that's not a bad return. What kind of tenant turnover have you had in the last year that has you ready to sell?
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Old 08-06-2010, 07:20 PM
 
2,076 posts, read 4,081,381 times
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I'd figure $100/mo property taxes, $30/mo renters insurance, $15/trash, $15/sewer (I thought landlords usually pay trash + sewer since you're required to have it on the property per clark county code) + Any HOA fees, figure at least $25/mo.

So you're total fixed monthly expenses based on the above, $185/month with no mortgage.

I'd plan on having it rented out 11/months of the year on average. Figure $1000/month rent - 10% management fees = $900/month net x 11 months = $9,900/yr.

So $9,900/yr income - $2,220/yr fixed expenses = $7,680/yr.

So you're earning around 7.6% on your 100k investment if you pay cash. Not including the inevitable repairs that the property will require. If you're lucky and have a tenant all year round, that kicks it up to 8.6% ROI.

The house could appreciate and that would be a bonus, but who knows?

Overall, it's not a bad, but not an earth shattering return either and very low liquidity with high exit costs.

The ORNAX municipal bond fund is paying around 7.7% tax free as a point of reference.


Quote:
Originally Posted by VR4Jen View Post
Can I ask how hard it was finding a tenant, and how your tenant experience has been?

We fully plan on getting a property management co. to do all the dirty work so we can just collect a check every month. The one's I've interviewed don't charge while the property is vacant, so it would just be ~100/mo property taxes, $30/mo renters insurance, and a small mortgage (if I can't pay all cash). Then add $100/mo when it's rented. Profit would be at least $500/mo... keep the property forever... how can this go wrong?

Can't wait to find out what these neighborhoods really look like tomorrow...
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Old 08-06-2010, 07:24 PM
 
Location: Bethesda, MD
317 posts, read 1,004,299 times
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Quote:
Originally Posted by Willy702 View Post
.... potential long term appreciation then I'd choose the houses to the south and west of the 215. This is where a lot of the future good jobs growth (ie. professional jobs) will come whenever Vegas gets to its new normal and that is usually the mark of good long term investment area.


"south and west of the 215" & "professional jobs" - is it Enterprise ?
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Old 08-06-2010, 08:42 PM
 
Location: Here and there, you decide.
12,908 posts, read 28,039,624 times
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Isn't renters insurance what the tenant gets? Where are you finding homeowners for 360 a year?
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Old 08-06-2010, 08:48 PM
 
Location: Here and there, you decide.
12,908 posts, read 28,039,624 times
Reputation: 5057
you also forgot the fee to the mgmt company... i'd figure it this way ...

rent 900 taxes 125 water/sewer 50 hoa 50 mgmt co 90 insurance 50 so thats $365 in expenses... If this is a condo, the hoa is going to be significantly higher... so right off the bat, you are down to 535. plus you haven't repaired anything yet. and you haven't paid the commissions to find a tenant yet.
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Old 08-06-2010, 11:11 PM
 
6,386 posts, read 11,910,331 times
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No, it is along 215 on the SW side and heading up towards Summerlin. Lots of new headquarters have already been built with many more to come, especially on the frontage roads.
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Old 08-06-2010, 11:26 PM
 
Location: Here and there, you decide.
12,908 posts, read 28,039,624 times
Reputation: 5057
Quote:
Originally Posted by lyra33 View Post
LOL, I put all crime for the last 7 days for the whole city. Run away investors, run away.
you do realize that car theft is among that crime don't you.... there are ALOT of cities MUCH worse than Vegas. I noticed you changed your mind about moving or investing here..... GOOD!
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