Cash Flowing Properties in North Las Vegas, NV

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Cash Flowing Properties in North Las Vegas, NV

Stephanie Kern
Real Estate Agent · North Las Vegas, NV · Member since 2017 · 13 posts · 5 votes

I am an agent in Las Vegas and I recently came across a few townhomes in North Las Vegas that appear to be solid cash-flowing properties that will meet the 1% rule and maybe even a little better.  I pitched it to my list of investors (not a long list!) and everyone wants flips, not buy-and-holds.  The owner is asking $180K and the most recent model match rented out for $1800.  I see some serious potential here!  And if it's a bad deal I would also love some feedback as to why!

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Andrew Weiler
Real Estate Agent · Las Vegas/Henderson · Member since 2022 · 28 posts · 15 votes
4y

Stephanie, 

This market in vegas has been changing rapidly whether it be up or down, investors are leaning towards flipping more just with the uncertainty of where the market goes. So investors want to gear towards the quick flip & cash out. 

There has been such a heavy influx of people moving to vegas, as it is top 5 cities for growth in the U.S. currently, which does bring lots of value to the market in vegas itself, but with all the inflation/feds raising rates it makes things a bit more uncertain. 

Properties in vegas are not bad thing for buy & hold though, being that long term this city has exponential growth & influx coming to it. 

Hope that helps,

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Stephanie Kern:

    I am an agent in Las Vegas and I recently came across a few townhomes in North Las Vegas that appear to be solid cash-flowing properties that will meet the 1% rule and maybe even a little better.  I pitched it to my list of investors (not a long list!) and everyone wants flips, not buy-and-holds.  The owner is asking $180K and the most recent model match rented out for $1800.  I see some serious potential here!  And if it's a bad deal I would also love some feedback as to why!


    There are too many unknowns to give you an answer.

    Personally, I lived in Las Vegas for five years and hate it. I only want to invest in places I believe in and that place is dark. If you have paid attention, Vegas has been losing water for a long time and will eventually run out. I expect that city to crash hard within 10 years.

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  • Andrew Weiler
    Real Estate Agent · Las Vegas/Henderson · Member since 2022 · 28 posts · 15 votes
    4y

    Stephanie, 

    This market in vegas has been changing rapidly whether it be up or down, investors are leaning towards flipping more just with the uncertainty of where the market goes. So investors want to gear towards the quick flip & cash out. 

    There has been such a heavy influx of people moving to vegas, as it is top 5 cities for growth in the U.S. currently, which does bring lots of value to the market in vegas itself, but with all the inflation/feds raising rates it makes things a bit more uncertain. 

    Properties in vegas are not bad thing for buy & hold though, being that long term this city has exponential growth & influx coming to it. 

    Hope that helps,

    3Reply
  • Jordan Murrell
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    4y

    Stephanie,

    I would continue to pitch your cashflowing properties to new investors as well. I know some investors who are still purchasing buy and hold properties because it makes sense for them. Yes, a lot of people are looking for flips and ways to get in & out but there are ample of opportunities for good buy and hold investments. There are always going to be a lot of no's before you get a yes!!

    1Reply
  • Joe Daigle
    Member since 2020 · 69 posts · 21 votes
    4y
    Quote from @Nathan Gesner:
    Quote from @Stephanie Kern:

    I am an agent in Las Vegas and I recently came across a few townhomes in North Las Vegas that appear to be solid cash-flowing properties that will meet the 1% rule and maybe even a little better.  I pitched it to my list of investors (not a long list!) and everyone wants flips, not buy-and-holds.  The owner is asking $180K and the most recent model match rented out for $1800.  I see some serious potential here!  And if it's a bad deal I would also love some feedback as to why!


    There are too many unknowns to give you an answer.

    Personally, I lived in Las Vegas for five years and hate it. I only want to invest in places I believe in and that place is dark. If you have paid attention, Vegas has been losing water for a long time and will eventually run out. I expect that city to crash hard within 10 years.


    0Reply
  • Joe Daigle
    Member since 2020 · 69 posts · 21 votes
    4y

    You may be right in your opinion about Las Vegas being dark. That’s your opinion.  But as for water you are wrong.  Beneath Las Vegas and the whorl of Clark county sits an aquifer that’s one of the largest in this country.  It’s managed by the SOUTHERN NEVADA WATER AUTHORITY.  you are speaking of Lake Mead—it sends 65% of its water to Southern California. 

    1Reply
  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    4y

    @Stephanie Kern The price seems low for the potential rent. Are there HOA rental restrictions? Are the HOA fees really high? Is there deferred maintenance that will result in special assessments?

    1Reply
  • Stephanie Kern
    OP
    Real Estate Agent · North Las Vegas, NV · Member since 2017 · 13 posts · 5 votes
    4y
    Quote from @Phillip Dwyer:

    @Stephanie Kern The price seems low for the potential rent. Are there HOA rental restrictions? Are the HOA fees really high? Is there deferred maintenance that will result in special assessments?


    Hi, there are no rental restrictions, HOA is $95 a month, appraisal came in at $175,000 with no conditions (he has reduced the price accordingly). I thought the price vs rent was off as well but I can find recent comps to support both. The location may be keeping people away? I don't believe that myself as I know how unbelievably hard it is for renters to get anything right now!

    0Reply
  • Stephanie Kern
    OP
    Real Estate Agent · North Las Vegas, NV · Member since 2017 · 13 posts · 5 votes
    4y
    Quote from @Joe Daigle:

    You may be right in your opinion about Las Vegas being dark. That’s your opinion.  But as for water you are wrong.  Beneath Las Vegas and the whorl of Clark county sits an aquifer that’s one of the largest in this country.  It’s managed by the SOUTHERN NEVADA WATER AUTHORITY.  you are speaking of Lake Mead—it sends 65% of its water to Southern California. 


     ^^^THIS!  Las Vegas uses less than their allotted quantity from Lake Mead and have created systems to manage the water we do have.  The news is good at selling doom and gloom....it's a different story when you live here. 

    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    4y

    @Stephanie Kern

    would need to see all the numbers / expenses to comment further.

    0Reply
  • Stephanie Kern
    OP
    Real Estate Agent · North Las Vegas, NV · Member since 2017 · 13 posts · 5 votes
    4y

    PP $175,000

    taxes $315/y

    HOA $95/mo

    20% down conventional loan at 7% PITI/HOA would be $1103 a month.

    Management and cap-ex = $306

    At $1800/mo rent you would cash flow $391


    Feedback is greatly appreciated!

    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    4y

    @Stephanie Kern I think there is some overlap in the way you did your numbers - at $180K purchase / $1800 a month rent I get:

    PI $863 (@ conventional 6%), taxes $315, insurance $42, property management $180, HOA $95, capex $120, vacancy $90 = $1705

    so cash flow closer to $100/month.  in fact, loan @ 7% drops cash flow to $0.

    So... I don't know anything about this market, this neighborhood or these condos, but they don't seem to be a slam dunk.

    With that said, that doesn't mean they aren't a solid investment, but I don't see anyone netting $400 a month on them unless they're self managing and they don't need any capex or repairs whatsoever and the HOA never goes up =-)

    1Reply
  • Stephanie Kern
    OP
    Real Estate Agent · North Las Vegas, NV · Member since 2017 · 13 posts · 5 votes
    4y

    Taxes are $315 a year, management is 7% ($126).  I did however miss the vacancy at $90.  Still comes in around $300 a month.  There is also room to raise rent.  There is currently one listed on the section 8 website for $1900, as soon as it's rented I can use it in my comps. 

    (I just noticed in the photos it has a new/newer AC)

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  • Rod HanksBusiness Member
    Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
    4y
    Quote from @Stephanie Kern:

    Taxes are $315 a year, management is 7% ($126).  I did however miss the vacancy at $90.  Still comes in around $300 a month.  There is also room to raise rent.  There is currently one listed on the section 8 website for $1900, as soon as it's rented I can use it in my comps. 

    (I just noticed in the photos it has a new/newer AC)

    Seems like a solid deal. I just think your list is way too small. If I bought in Vegas I would definitely be all over this if it’s in a good neighborhood.
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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    4y

    @Stephanie Kern taxes cannot be $315 a year...

    But I really have no stake in this, just encouraging you to be conservative...

    0Reply
  • Stephanie Kern
    OP
    Real Estate Agent · North Las Vegas, NV · Member since 2017 · 13 posts · 5 votes
    4y
    Quote from @Nicholas L.:

    @Stephanie Kern taxes cannot be $315 a year...

    But I really have no stake in this, just encouraging you to be conservative...


    I just double checked and they were $303 for 2021 and $330 for 2022 so yep, cheap cheap here in the desert!  As far as being conservative, I have a tendency to be TOO conservative and watch opportunities slip by because I second guess myself or get cold feet.  I keep a lovely mental portfolio of missed opportunities that I have spotted and someone else has made money on.  I'm here to get past that with the help of experienced investors like yourself who will thoroughly pick apart deals I think I see.  

    OK, what else should I consider on this townhome?

    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    4y

    @Stephanie Kern

    what's the neighborhood class, what's the zip code, how many bedrooms and bathrooms?  what did it last sell for?

    1Reply
  • Stephanie Kern
    OP
    Real Estate Agent · North Las Vegas, NV · Member since 2017 · 13 posts · 5 votes
    4y

    C class, 89030, 3 bed/2.5 bath, 1170 sqft, last sold in 2019 for $106K, I can get the recent appraisal paperwork.

    0Reply
  • Jeff Castro
    Rental Property Investor · San Diego, CA · Member since 2019 · 61 posts · 27 votes
    4y

    @Stephanie Kern I might be interested. I own a couple of sfh in Vegas already and familiar with market.

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    4y

    @Stephanie Kern

    Well, it's really going to come down to the CoC return, and whether it's worth it to put $40K+ of cash into a condo with no value add play. At $100 a month you're at about 3%, at $300 a month you're at about 9%. So where does it really land? And does it make sense as part of your / the buyer's portfolio?

    You (or an investor) would need to confirm those taxes 100%, and have a really strong property manager.

    Finally, just to disclaim again - I invest in Pittsburgh, and don't know the Las Vegas market at all. Property taxes are much higher here, and Capex is also a much bigger factor since so much of the housing stock was built between 1910 and 1950.

    Hope this was helpful!

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    Put it in the classifieds!

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  • Stephanie Kern
    OP
    Real Estate Agent · North Las Vegas, NV · Member since 2017 · 13 posts · 5 votes
    4y
    Quote from @Nicholas L.:

    @Stephanie Kern

    Well, it's really going to come down to the CoC return, and whether it's worth it to put $40K+ of cash into a condo with no value add play. At $100 a month you're at about 3%, at $300 a month you're at about 9%. So where does it really land? And does it make sense as part of your / the buyer's portfolio?

    You (or an investor) would need to confirm those taxes 100%, and have a really strong property manager.

    Finally, just to disclaim again - I invest in Pittsburgh, and don't know the Las Vegas market at all. Property taxes are much higher here, and Capex is also a much bigger factor since so much of the housing stock was built between 1910 and 1950.

    Hope this was helpful!


     All of the feedback has been very helpful!  Thank you and I sincerely appreciate your time!

    0Reply
  • Brian Walters
    Las Vegas, NV · Member since 2019 · 173 posts · 78 votes
    4y
    Quote from @Stephanie Kern:

    I am an agent in Las Vegas and I recently came across a few townhomes in North Las Vegas that appear to be solid cash-flowing properties that will meet the 1% rule and maybe even a little better.  I pitched it to my list of investors (not a long list!) and everyone wants flips, not buy-and-holds.  The owner is asking $180K and the most recent model match rented out for $1800.  I see some serious potential here!  And if it's a bad deal I would also love some feedback as to why!

    Stephanie, I'm interested in learning more.  Would it be possible to send me the listings or addresses so I can research more?  Are these off market?

    Not sure what, but with how investment properties move in this town it seems hard to see why these aren't already sold if those numbers are accurate.

    Let me know what you think.  Thank you

    0Reply
  • Peter Lee
    Member since 2022 · 1 post · 0 votes
    3y

    hi @Stephanie Kern, I hope I am not too late, I am new to LV area.. can you pls send me the listing?

    0Reply
  • Jim OwensPro Member
    Rental Property Investor · Las Vegas, NV · Member since 2016 · 31 posts · 1 vote
    3y

    Hi Stephanie

    I ran across your posting and was interested to see what ever happened with this property. I would be interested in properties similar to this if you run across them again. 

    Thanks 

    Jim

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