[Tires]

This is one of many areas where you can get a much bigger house that will rent for more money for a lower purchase place.

Las Vegas News Video

[airics]

The link is for zappos. If I had a choice of a 3br kb home at 80k vs a 2br Pardee home in a better area for 100k, I'm taking the pardee home

[Tires]

Originally Posted by airics

The link is for zappos. If I had a choice of a 3br kb home at 80k vs a 2br Pardee home in a better area for 100k, I'm taking the pardee home

Odd. The link worked for me. Try this one instead:

Desert Underwater: The Hardest Hit Neighborhoods

Why throw away the higher cash flow of lower purchase price and higher rent?
Seems like the potential money to be made would be much better with a cheaper house that gets higher rent.

[airics]

Link worked. The cheap homes are in nlv. Where is the 100k home?

[Tires]

89031 is a pretty decent area of NLV. The house shown where the real estate agent was standing was listed for $75K in Paseo Del Norte. I see homes there selling in the $90Ks and less. Looks like the one in the video needs new floors, appliances and some other work, but it will still be much better cash flow to an investor than buying a new 2 bedroom home for $103K.

[airics]

Not if the 2br is in summerlin or green valley. Nlv is fine but it has a stigma and takes longer to rent

[Tires]

Why would an investor wanting to maximize profit care about that if the 89031 property rents for more money in relation to the the purchase price?
89166 is nicer than most on 89031, but it isn't that much nicer to command enough rent to make up for the higher purchase price on a new home.
$800 rent on a 103K purchase of an 1100 sq ft 2 bedroom new home vs $1100+ rent on a $90K purchase of a 1500+ sq ft 15 year old home.

[airics]

Not trying to argue but I'm not going after a 15yr old home either. To each his own but I missed the new vs 15yrs old home. Wouldn't even consider the old home

[Tires]

Fine, but regardless, there are better choices for an investment or rental property. Not seeing why an "investor" would want to choose homes in the subdivision I listed in the first post for a rental property when they can make more money with other choices. There are 5 year old and newer resale homes in 89131 and 89149 with no NLV stigma, that are larger that will bring in a much better return on investment.
Even the brand-new Tapestry homes nearby make more sense as potential rental units.
Even if you can make some money renting the Richmond home, you can make "more" money renting something else and that's usually what investors want.

Too bad houses are so disposable in Las Vegas that 15 years old is too old to buy. It's a bad mentality in the area that causes neighborhoods to deteriorate into ghettos so quickly and people just keep fleeing further and further into the desert to buy newer homes instead of properly maintaining existing neighborhoods. Must be rubbing off from the implode and rebuild mentality from the strip.

[Jukesgrrl]

Originally Posted by Tires

If you buy new with a 15 year mortgage, you should be paid off before you have to deal with much repairs. Replace carpet, repaint and maybe replace the water heater and washer dryer in that time frame.

My personal experience with buying a new home (my first new build, my previous homes were all between 50 and 100 years old) has been much more expensive than your projection. My home was built by Pulte. It wasn't bare bones; there were upgrades in many interior features.

Before the home's 10-year anniversary:
-The house didn't come with w/d, so I had to buy those.
-Rear landscaping had to be put in.
-The entire interior of the house had to be repainted. The paint used by the builder was practically see-though.
-The stove needed three repairs and I finally gave up and replaced it.
-The refrigerator required two repairs and gave up the ghost at age 8.
-Most light fixtures had to be replaced.
-The faucets in the master bath sinks and shower, as well as the kitchen, needed to be replaced (they were Moen, but obviously some junk they made just for builders).
-Springs on the garage door failed.
-The microwave had to be replaced.
-The laminate in the kitchen separated from the counter, cracked, and I had to replace the entire counter.
-The air conditioner compressor had to be replaced.
-A problem with the a/c's drain line caused a flood in one of the bedrooms requiring new carpet padding and a closet to be rebuilt.
-The exterior of the house (stucco) needed to be repainted (HOA-mandated).
-The HOA also required me to absorb the expense of removing TWO trees that the builder had (inappropriately) planted before I bought the house.
-The hot-water heater had to be replaced.

Still to be done prior to the tenth anniversary:
-The concrete patio appears to have been installed improperly and everyone who's looked at my water problems tells me I must replace it and beef up the footings for the roof supports.
-The dishwasher is not working up to snuff so I expect to lose my final original appliance soon.
-The wall-to-wall is badly buckled.

So when you're calculating expenses for new construction, please be forewarned that you might experience more than you indicate you anticipate. You'll note that all expenses I listed were necessary repairs, not things I added or replaced just for decor purposes. I had a highly qualified independent home inspector look at the house before I bought it and I use professionals for things like HVAC and roof checks, duct cleaning, pest control, and landscaping. Live and learn. I spent 13 years in a house that turned 100 while I lived there and I didn't spend nearly as much money on repairs as I've spent in ten years with the "new" house.