What to do with $100,000

General Real Estate Investing
21

Unless you own property already, Vegas is not the place to go for rental props.

Right now a “Starter” home will run you about 250k due to the boom. Meanwhile, rents have not risen. In a good area you will see ranges of $1000 to $1700 (5 bdrm). Your typical starters are 2-3 bdrm. Even at $1500 rent, you are losing money. Appreciation will be 5-12% depending on your area, with Summerlin and the new SW being among the best.

With higher home prices come higher prop taxes. Unless I missed it, I see no way someone can come in and make it work. If you buy one of the 40 homes on the market around $200k, they will be in the worst areas where rent is probably around $600 or less.

22

Just wanted to add that our median house price is almost 300k and rising.

Our Governor is already working to get a plan passed to reduce new home costs. I have no clue what this plan would do to the market but I bet it is not good. But it may not matter either.

The new plan:

  1. Builders would build on land that is kept in a state trust.
  2. Home buyers are not buying the land, only the building.
  3. Be for only those who can show an income of 80% of median income, which means $45k or less. Easy for a single person or self-employed to to do.
  4. They would shoot for 3,000 new homes per year out the gate.

Prices would most likely be sub 200k. There is a debate as to if these owners have to pay prop taxes. They better!

Also, they would put rules on selling as well. So basically, you are buying a govt controlled home in essence.

23

If you really think about it that is pretty much what property tax is! we are just renting our land anyway!

Also yes you can buy a bad tax lien like I bought one for $483.00 and ended up owning a unbuildable lot! So I turned around from the lot knocked on the nieghbors door and sold it to them for $1000.00 So what I only doubled my money ouch! Think about it does it really matter what you are buying for $400-$3500 I do a ton of tax liens every year and that is the only property I have ever owned by default… the rest I have made 12-15% on and have never even looked at.

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back to top… New Topic with same question hope this helps ramon

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I am looking at a 2 bed/2 bath condo in Las Vegas on June 5, 2005 selling for $68,000. It will rent for $600-$650. If I pay all cash, I will be getting a positive cash flow, less Homewoners and taxes. Should be about $475
a month on a $68,000 investment in the fastest growing city in America with high employment and a shortage of rentals, Plus, a tax right off every time I visit my investment.

If there is a bubble, there is no downside.
Looks like a winner to me.

26

No offense intended, LVNL but –

There is no mention of maintenance, management, or vacancy cost (even if they are negligible)…$475 a month cash flow ($5700 a year) tying up $68000 cash (plus closing costs) represents about an 8.4% return. While this IS better than a bank, it is not spectacular…

…and when the dust clears, it’s still a condo!

My two cents…

Keith

27

As to Vegas:

I. There is however a shrinking supply of apartments. You can still find tons of places to rent though. IE SFHs and Condos.

II. The condo market is hot right now, as anyone living here and into realty will tell you. Condos sub 100k will most likely be eaten up in the coming years since our median home price is now 300k.

III. The thing that worries me is we are the top city when it comes to condo conversions. There are THOUSANDS of new condos and more coming. I worry because I know of all the condos coming to the market shortly and wonder if oversupply will set in and hurt value. Time will tell.

IV. Most condos in pretty decent areas run about 100k. 50-100k are in ok to decent areas. In fact, just down the road from me about 1 mile is an apartment complex that converted to condos, which start at 100k. Condos in prime areas normally run about 200k+. The median condo price is now around 150k.

V. We have no less than 6 major developments for high rise condos being built and some the pre-selling has begun on 1 that I know of. Actually, there are about 50 permits for condo towers.

I wonder if there will be any decent apartments left soon. Thousands of them this year has disappeared and reappeared as condos.

If you are a long term player, I think a $60k condo in a good area is not a bad play–if you like condos. I personally hate them. I am a land kind of guy. I just hate the idea of buying an apartment. However, I that is my own preference and is probably costing me moolah.

There have been many condo horror stories around so it is best to do severe research about the property owners and their upkeep policies. Would suck to have a bum roof and nothing you can do about it. This state and the courts and laws are geared towards the big owner, the business, and the employer, not the little guy.

Condos in Summerlin–or on border, or the SW are in solid areas. Summerlin is expensive and shooting up because the land is gone. The SW has been experiencing solid growth and there is a major community being built out there. It just started pre-selling and will be a staple in the area in a couple years or so.

There are condos going up by my home. They can be yours starting at only $700,000. :smiley:

In closing, if you are buying to rent out, be advised. You will have lots of competition. There is currently about 17,000 more condo units slated to be converted. It is currently estimated that 50% of all condos sold go to investors with the intent to rent them out. That is a whole lot of competition.

28

Condo’s in Las Vegas vs. anything anywhere

  1. 6000 people a month are moving to Las Vegas
    (#1 destination in US)
  2. High employment (7.5% growth from 2004, again #1 in US)
  3. Hi rise condos on strip starting at $500,000, while 2 miles from strip $90,000.
  4. Condo conversions depleting all decent apartments, those 6000 new people have got to live somewhere.
  5. Investors are strictly limited in all new sales at condo conversions, unlike houses. The #'s of investors is closer to 10%, NOT 50%, and the investors that get in, sure have a sweet deal.
  6. Condo’s close to any downtown area in any city of the country are selling. And who wouldn’t want to be close to the strip
29

I agree LasVegasNewList I currently have two rentals in Vegas and never have a problam renting them one is a house and the other a condo they both are great investments. I have another deal out there though a landlord wanting rid of 2 more now I bought the last two from him so this might be a go just need to see!

30
6. Condo's close to any downtown area in any city of the country are selling. And who wouldn't want to be close to the strip

If you mean residents, plenty. I have lived here for 25 years and know this place like the back of my hand. The areas around the strip are your very low income, more transient areas. Of course those types are all over, but it is highly accented in that area. Could be a gold mine for those who specialize in the lower areas.

As for a tourist rental, sure. Anywhere close to the strip is very nice.

Most residents who can, move away from the strip. The keyword here is CAN. The area around the strip is very low income, high crime, drugs, gangs, etc. However, many residents gamble their money away, have crap jobs, and so forth and can only afford this type of housing. This is one reason why the SW has been so hot. It is away from the strip but still a manageable drive to work.

As to the 50% number. I agree this is somewhat high, but I do know it is much higher than 10%. Just got to be on the battlefield to see it. Still, numbers like this are hogwash anyway. Highly speculative.

We are pretty solid. The 6k a month figure is a time tested tradition. We probably have a couple K per month leaving though. Still 3-4k monthly is good. By 2008, we should hit 2 million residents–according to our latest prediction model.

As to employment, you have to look at job quality not quantity. Most of the jobs are min wage + tips and tip saturation grows with each new casino. The good thing is the city is somewhat working to increase real jobs in the area, which will be very good for the economy.

Another area that is growing is the new North Vegas. Starter homes there are being eaten up.

As to rents, I agree with specializing in low cost property and down by UNLV and the strip areas are where its at. There are a TON of low paying jobs in this city for people that require no skills or training. For example, you could walk right down to the old downtown (Where places like the El Cortez are) and get say a Keno job for $6 per hour + tips of about $8 per night. 40 week = $280ish.

Our city is working on curbing increasing property taxes now–another great thing about Vegas.

I can tell you that this is the best place in the world to invest. Personally, I stay away from the real bad areas. Condos might be a money maker and might not. Their appreciation is tied to the housing boom here and that has cooled of late. Looking over the past 6 months, appreciation here has returned to just slightly above normal.

31

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32

What the?

But since this old thread has floated back to the top . . . the ol’ “what would you do with $100k” question . . .

Multi-family.

Second, I live in Bergen Co. New construction has slowed to a fraction of what it once was, but inventoryis not as backed up as Florida or other places because the DEP had restricted building in the past few years. I have seen the lower priced, under $500k, homes get asking price, even a bit higher in the lsat month or so. And I think the medium priced homes, $500 to $1mil, are going to be next to start coming back. We’ve hit bottom here. The NY/NJ area is usually ahead of the trend and not as bad as other areas of the country. Spring market will tell for sure.

33

I entirely agree with this! :deal