BRRRR Investing in Las Vegas

[Neil Henderson]

I took a real estate friend of mine to dinner this week to pick his brain about REI. I'm just starting out and in addition to reading as much as I can get my hand on. I'm reaching out to friends who are already in real estate. He's a long time agent and runs a successful property management business here in Las Vegas. I asked him about the possibility of doing some BRRRR investing here in Vegas with either single-family or mult-family properties. It was his opinion that the cap rates in Vegas right now are just not advantageous to doing that right now. He suggested I look out of market somewhere like Memphis or Texas. Any local Vegas REI have an opinion on that either way? Any one else have opinions on investing out of you local market?

[Christopher Brainard]

I agree that the margins here in Las Vegas are very thin and acquiring properties at a low enough price to refi your cash out is very challenging. Basically, you need to find off market properties, as you won't be able to compete with the cash investors. 

Additionally, I am not an advocate of newbies investing out of state. When you aren't living the daily activities your risk goes up significantly and you learn less.

-Christopher