[Melanie1616]

I am in the process of buying a house for rental purposes. I consulted with a property manager to help in selecting a house. I chose two in the Paradise Hills area, one is 2000 sq ft across the road from school/park. the other is about .8 mile from closest school (both have good ratings) and 2800 sq ft. They are both around the same price. My PM says the big house will rent higher and just as consistently as the one across from the school, it seems to me location is more import? Any thoughts to help my decision...

[airics]

More importantly is Amt of bedrooms. To be positive cash flow you should be at 120k or less for the house. You will see about 1300 a month in rent

[Melanie1616]

Thanks for the reply - that is my gut instinct as well. I don't see renters saying I don't care about anything but the square footage?? PM says amount of bedrooms doesn't matter - figures the 2800 sq foot house (which does have 4 nice size bedrooms) will rent between 1550 - 1650/month. Very reputable PM firm, but worried they are cookie cutting everything! You said a $120,000 house for positive return, but according to the square footage thinking, it would be more $/sq ft based?

[justthe2ofus]

1. we, would never rent a house across from a school, due to traffic and activity.
2. as renters, it baffles us when we ask potential LL's for the sq.ft of a property, and
they don't know. we find it more in condos and apts, rather than houses. this is pertintent
information. every LL should know this and disclose it as well as the dimensions of
each BR, the LR, Kitchen, and any other large room (den, patio, etc).
3. we'd rent the house 1 mile away.

ymmv

[sheriwx]

Square footage would matter more to us. To be in a school zone, YUCK. (And we even have school aged children. I HATE the 15 mph school zones, although I understand them.)

So for me, I'd rent the 2800 footer much sooner than the one by the school.

[Melanie1616]

Thanks everyone for the input! Never thought of the increased traffic when your trying to go to work or the slow zone. This forum is great to bounce ideas off others!

[oldtrader]

I was until I retired a commercial real estate broker, and managed a lot of houses.

Across from school is not an advantage anywhere. Traffic, Noise, and there is more vandalism and property damage that close to a school. Not meaning the kinds want to damage the property, but the go up onto the property when in bunches, drop more trash, etc.

Across from a school makes a home harder to sell, when you eventually want to sell it.

Consider only buying a rental in Vegas at this time, if you can get it about 15% to 20% under the current market. Prices declined about 9.8% last year, and will decline this year.

Information gathered from Trulia the best place to follow things like this.

The median sales price for homes in Las Vegas NV for Dec 10 to Feb 11 was $120,000 based on 13,371 home sales. Compared to the same period one year ago, the median home sales price decreased 9.8%, or $12,988. There are currently 12,394 resale and new homes in Las Vegas,as well as 36,573 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

In other words, there are 3 times as many homes in foreclosure, bank owned early states of foreclosure, etc., as currently on the market. Those houses plus the ones currently on the market, is a 4 year supply. The city is going to soon be flooded with an oversupply. Las Vegas has been estimated to take at least 10 years for the real estate market to turn around. The reason for the glut in foreclosure, is that the government got things stalled on foreclosures while making new rules, and trying to find way for people to keep from losing their homes. Now the foreclosures are hitting fast and furious, and the above numbers will be added to this year.

If I was advising one of my former clients, it would be not to buy unless they could get it for 15% to 20% under the market, and then be very choosy.

[jfkIII]

Location, location...and location.

[airics]

Originally Posted by Melanie1616

Thanks for the reply - that is my gut instinct as well. I don't see renters saying I don't care about anything but the square footage?? PM says amount of bedrooms doesn't matter - figures the 2800 sq foot house (which does have 4 nice size bedrooms) will rent between 1550 - 1650/month. Very reputable PM firm, but worried they are cookie cutting everything! You said a $120,000 house for positive return, but according to the square footage thinking, it would be more $/sq ft based?

unless its in summerlin, green valley etc.. i doubt you will see 1550-1650.. at that price point, people BUY. Even if you are lucky at 1500, figure 1st month to pm, 10% to pm.. you are at 1225 average.

unless the home has a pool.. its not going to happen imo... and at that price, how long will the home be vacant prior to rental...

i've been showing homes at 100k in nlv, that rent for 1200.. why would i recommend this area, it rents easy.. i have a rental in the complex also.