Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago on . Most recent reply

Account Closed
  • Oakland, CA
2
Votes |
11
Posts

Any strong opinions about Las Vegas for SFH?

Account Closed
  • Oakland, CA
Posted

Hi folks. I'm still in learning mode but starting to focus on specific markets for buying my first SFH to put to use as an investment/long term rental property.

Las Vegas is one of the markets I’ve been interested in. I know several people there and it’s easy to get to for me (I live in California). I feel like I haven’t seen a whole lot of discussion of LV on BP and I’m wondering if people don’t think it’s a good place to buy / attract renters.

Would anyone be willing to share strong opinions one way or another? Or point me to resources they've found useful re: Las Vegas REI?

Thank you!

Most Popular Reply

User Stats

737
Posts
1,510
Votes
Eric Fernwood
  • Realtor
  • Las Vegas, NV
1,510
Votes |
737
Posts
Eric Fernwood
  • Realtor
  • Las Vegas, NV
Replied

Hello @Account Closed,

As others have stated, the Las Vegas market is very strong. Here is how I see Las Vegas from an investors point of view:

  • No state income taxes.
  • Pro business government actively seeking growth and diversification business opportunities.
  • Average property tax: 0.55%
  • Time/cost to evict: <30 days and $500
  • Economic activity: Currently, $24B under construction (and more announced), which will create thousands of new well paying jobs and bring more people to Las Vegas. Remember that this is a town of 2M population so $24B investment has a tremendous impact.
  • Google is building a $600M data center. Facebook moved their servers to Las Vegas as have other providers.
  • Commercial energy cost: California: $0.​19/KwH, Nevada: $0.08/KwH. Also, Las Vegas is one of the few cities in the US with dual sources of power, critical for servers and electricity dependent industries like data centers and Internet switching.
  • The fiber optic bundle connecting Southern California to the East Coast runs under Las Vegas Boulevard, which is why Switch Company, one of the largest data centers in the world is located in Las Vegas.
  • 87.5% of Clark County is federally owned. Today, the amount of vacant buildable land is <28,000 acres, much of which is not viable for residential development. Consumption rate is about 5,000 acres/year. See the GIF below​. The areas in brown are federal land. The time-lapse only goes through 2018 and there was a large amount of development in 2019 so even less land is available now. I believe that the shortage of land and increasing population almost guarantees prices and rents will rise.
  • Many people moving from California to Las Vegas. Currently >30% of properties sold in Las Vegas are to California addresses.
  • Affordable. The best price range for single family investment properties is between $250,000 and $350,000.
  • Return with 25% down is usually between 3% to 5% after all expenses including management, insurance and debt service.​ Add about 2% for a cash purchase.​
  • Average appreciation over the last 9 years: 11%. This year is likely to be above 6%
  • Rents increasing rapidly. 4.5% last year, and we expect it to be higher this year due to the inventory shortage.
  • Landlord insurance on a $300,000 property is about $450/Yr.

In summary, Las Vegas is a good market for investors today and should remain so for the foreseeable future. If you would like more details on our view of the market, please see our 2020 Annual Investor Outlook under our BP Member Blog.

business profile image
FERNWOOD Team, KW VIP Realty
5.0 stars
15 Reviews

Loading replies...