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Updated almost 6 years ago, 03/06/2019
What are your thoughts on Las Vegas? How do you measure potential
Lately I've been really looking at Vegas and Orlando, FL as potential next areas for investing. Wanted to hear everyone's opinions and see how you judge certain cities for potential!
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- Lake Oswego OR Summerlin, NV
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#4 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
Vegas to me is a much tougher market to compete in if your looking for under valued value add deals.
Orlando is very spread out with many satellite areas were deals while not like they were 6 years ago when i was funding a bunch there.. but not quite as tough i think as vegas.
pro's on Vegas in my mind
1. No income tax same as FLA so that is equal
2. insurance is probably lower
3. prop tax's not sure but probably about the same.
4. better airport.
5. weather not nearly as harsh IE rain thunderstorms etc..
6. landscaping can be just rock and is accpetable.
7 houses pretty much all stucco.. so no bug issues
Closer to west coast which for me matters may not for you
- Jay Hinrichs
- Podcast Guest on Show #222
I am not focused on Vegas right now but here are the things to look for when choosing an area/city to invest in:
- projected job growth
- rate of foreclosure filings
- is the city government investor-friendly?
- are there Fortune 100 companies coming into the area (building a plant or relocating their headquarters) in the next 5 years?
- permit filings compared with unit absorption
- increase in land price
@David Corboy I strongly recommend talking to the top producers in what ever area you area you are looking to invest in. Understand what the other investors are doing and how you can get a leg up on the competition. The main thing about Vegas is that cash doesn't matter here. Everyone is connected with lenders and has money to close quick but they can't find the opportunities. Find out how you can add value to the area in which you are looking to invest. How can you be the one for people to bring off market properties too? If you can do that, you will know how to dominate what ever market you are looking to get into.
Louis
@Louis Davis thank you very much! This is tremendous advice!
@Michael Ealy When you see high foreclosure filings do you tend to pounce for the deals or to avoid because of the neighborhood? My guess would be the latter?
@Jay Hinrichs to be honest I'd like to do rock yards for all of my landscapping due to environment
@David Corboy https://www.businessinsider.com/photos-plans-blockchain-utopian-village-in-nevada-desert-2018-11
From what I have been reading Vegas is experiencing some strong rent growth. Check out this recent post from a guy named Trey Knight. He is also looking into the Vegas market and would be good to connect with https://www.biggerpockets.com/forums/432/topics/67...
Many of the Florida markets, like Phoenix, have been slow to recovery from the 2008 financial crisis. Due to this, these markets are now showing strong growth in both rents and development. @Omar Khan recently purchased a 138 unit apartment complex in Jacksonville Florida and very active in acquiring property here.
Originally posted by @David Corboy:
@Michael Ealy When you see high foreclosure filings do you tend to pounce for the deals or to avoid because of the neighborhood? My guess would be the latter?
David,
The important thing to watch out for is the RATE of foreclosure filings. If the foreclosure filings is INCREASING and the days on the market (sales) is also increasing, I would tend to AVOID the area. That means, in 120-180 days, some of those foreclosure filings will become REOs and those will depress real estate prices in the area. So buying does not make sense specially with the intention of flipping the property.
@Michael Ealy my plan is to invest entirely in rentals and NOT do flips or anything else. My plan is to do a buy and hold for the long term strategy. So do you think that in certain circumstances it might make sense to look for these depressed areas and try and find a deal? With the intention of holding for the long term.