Would you buy a condo in Vegas (Paradise) for Airbnb rental?

Question

I've never invested in the US as I live in Europe, and I'm not an American.

But I came across some deals that seem great "on paper".

I'm considering getting a condo in Paradise (Vegas) for 66k and find an Airbnb property manager.  Occupancy rate seems to be 74% and avg. revenue pretty high.

It seems too good to be true - perhaps it is?

Would love to pick your brain.

Thanks

Bill B. · Answer

Also make sure Airbnb is allowed in the city and the building you choose. It is highly restricted or outlawed in much of Las Vegas. If the numbers don’t work with a regular tenant I wouldn’t do it.

That said, a condo under $100k near the strip? I’d be worried about that part as well.

Alexander Felice · Answer

airbnb in Vegas is littered with regulation risk.

It's hard to do in many parts of the city, as Bill Brandt said

and the true long run costs of it are yet unknown. there is expense volatility going forward for sure. Can you make money on it right now, YEP, but what will it produce long term no one knows yet. it's a new industry, something to consider.

also, as bill says, a <100K condo near the strip. worrisome!

Rachel B. · Answer

Hello! @danielrongo

I have an Airbnb in Paradise - makes great revenue ! Current regulations state owner must occupy property as well as short term renters with the exception of the Condotel. There are 5 high rises on or close to the strip where Airbnb rentals are allowed and guests are checked in by the hotel and allowed to use the hotel amenities as well. These Condotels are great ways to make passive income and you can stay in them when you visit Las Vegas as well. Otherwise I would recommend purchasing a condo in an area like Summerlin where the traditional rental is in demand and you will get a great ROI on your investment!

Neil Henderson · Answer

In response to @Daniel Rongo question, I would steer clear of purchasing a condo in Paradise for short term rentals.

A couple of reasons why:

1. Paradise is in Unincorporated Clark County. Short term rentals less then 30 days are expressly forbidden, unless they in one of the condotels on the Strip.

2. The neighborhoods where those condos are are really sketchy.

3. You never know when an HOA is going to decide it doesn't like short term rentals, or long term rentals for that matter.

All that said, there are people doing it and just rolling the dice that the County won't shut them down. I have many real estate friends who have gotten cease and desist letters in the last 18 months.

The City of Las Vegas and the County both have administrations who are VERY hostile to short term rentals. The Mayor of Las Vegas is a long time resident of a neighborhood that became very popular with short term rental operators (Scotch 80's). She has pretty much made it her mission to shut down "party houses" in all of Las Vegas. Even going so far as to say she hopes it will be her lasting legacy. I also suspect the hotel lobby has mounted a shadow campaign against them for years.

The news is not all bad, the City of Henderson (basically Southeast Vegas) voted to allow short term rentals just recently. Big thing to be mindful of when looking there is most properties are in HOAs that don't allow short term rentals.

Anthony Carbajal · Answer

It depends where exactly.  Some areas in the Paradise area can be a bit rough but, they're conveniently close to the Strip, Airport, UNLV, T-mobile, etc.

Stephan Kraus · Answer

Hey @Daniel Rongo,

im a fellow European, currently living and investing in Las Vegas, two of my rentals are short term (airbnb and insurance replacement housing) but they are SFH, not Condo's - if you can get one in the right area for the right price where you can legally run a STR it can be a great asset, but you as it has been said before, be mindful of hoa regulations, current legalisation changes (henderson is voting on new str regulation next tuesday that hopefully effect the current vegas regulations once in place) and definitely know the areas, as theres definitely places that airbnb guests and most regular tenants wont like to stay in. If you are out of state / country a good team / boots on the ground is crucial.

Im happy to give you some of my insights / recommendations if you have any questions 🤙🏼

Victor Chanhthasenh · Answer

@Rachel B. what are these condo hotels. i would like to look into it. can you provide more information on it?

Dan Mumm · Answer

Love all of the comments above. Completely agree Account Closed. Some people get away with it, but its a very high risk due to regulatory changes and not a sustainable long term plan. It's illegal in most of the city and only getting more bad press. The only areas where it would be do-able would be in high crime/D/C areas where you probably don't want to own anyway unless you are an experienced investors and the returns are off the charts.

Would you buy a condo in Vegas (Paradise) for Airbnb rental?

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