First Time Investor Looking at Las Vegas Market

[Cole Anderson]

Hello everyone,

First time real estate investor here. I'm considering investing in Las Vegas using the VA loan and zero % down, but after running calculations on a couple prospective properties (both SFR 3bd/2.5ba), it has become apparent that negative cash flow is inevitable given current market conditions (estimated -750/mo). I'm a bit nervous about this, and I'd like to hear from experienced investors.

It seems house hacking a SFR will be my best bet for minimizing negative cash flow losses while satisfying VA loan owner occupancy requirements (I currently live in Southern California, and work in Vegas). Over the long term, I'm banking on appreciation, rent increases, and lower interests rates which should hopefully result in positive cash flow in the future.

With the industry growth projected over the next 10 years in Vegas it is hard not to be bullish on the prospect of investing there. Although, after looking at the sheer amount of homes and apartments available for rent on Zillow and Craigslist, it's concerning that now may not be a good time to invest. 

After talking with a couple of Real Estate Agents in the Vegas area, the consensus seems to be this:

"Buy now while prices are lower as a result of high interest rates, refinance later, and bank on higher than average appreciation."

This makes sense and sounds appealing to me, but as mentioned earlier, I am new to this and would like to avoid getting overzealous, hitting the "I believe" button after talking to two Real Estate Agents and jumping into a bad deal. What do you think? 

Your thoughts, comments, and guidance are welcomed and appreciated. I would also love to connect with local investors (coffee is on me!).