Los Angeles, CA · Member since 2015 · 16 posts · 4 votes
Hello, me and my family have around $300,000 of cash. We are thinking whether we should invest multi family apts in California or Las Vegas..
I know that Las vegas is cheaper and have more cash flow, but I heard that people in las vegas there are many overturn rates. I heard rumors that says out of state investors in Las vegas are looking for "next sucker" to buy the property from them because they are having bad experience. I think it might be because of high gambling rate and other stuff. If we buy a property, we were thinking of about $1200,000 to $1400,000 in vegas or California.
Can any body tell me their own experience investing in "multifamily apts" in Las Vegas? should I avoid it?
Also if I invested in both Los Angeles and Las Vegas $1000,000 apts, what would be the tax difference be? will CA be alot higher?
The reason for all the multifamily horror stories in Las Vegas really have nothing to do with gambling. Most of the small multifamily that was built was built a long time ago and currently resides in D Class Neighborhoods. It wouldn't matter what you owned in these war zones, you aren't going to get quality tenants. If you're going to buy multifamily here, you need to know the neighborhoods to ensure you don't buy someone else's problem.
The reason for all the multifamily horror stories in Las Vegas really have nothing to do with gambling. Most of the small multifamily that was built was built a long time ago and currently resides in D Class Neighborhoods. It wouldn't matter what you owned in these war zones, you aren't going to get quality tenants. If you're going to buy multifamily here, you need to know the neighborhoods to ensure you don't buy someone else's problem.
@Jacob Song If you live in Los Angeles, and you and your family are planning to stay here, you will likely end up paying California tax on your income whether you invest in Los Angeles or Las Vegas. Maybe take that out of the equation if you are California residents.
@Jacob Song Hey I have lived in vegas my whole life and I have seen some nice multifamily properties with potential. A lot of the multifamily properties are in bad areas and yea I hear the stories too. But if you manage or have good management for your property in those bad areas investing in vegas could really work out great. I would do it myself but don't have the money so I have to wait until I have built up some cash or connect with a private lender. But a lot of these properties are not being managed very well which is why theyhabe these problems just my opinion.
Hey Jacob, like the others said you've got to know the market wherever you go. Ideally, you start in your backyard but if you do enough research and don't mind the 4-hour drive to Vegas every once in a while, I'd definitely choose that. I think that the "next sucker" can be found anywhere someone throws money into something they don't know enough about.
Perhaps try investing alongside someone with expert knowledge first, then with that education, you can trust your abilities to invest by yourself and you'll be the one answering questions.