Multi-Family Investing in Las Vegas, NV vs. Fresno, CA

[Phat Vi]

Hi All,

I am debating to invest in multi-family home between Fresno, CA and Las Vegas, NV.  For the same price range (up to 200k). Vegas has a lot of inventory comparing to Fresno. This makes me wonder why so many investors or owners want to sell their properties as these bring positive cash flow. Is it due to high vacancy rate or bad tenants?

If you own or owned a MFH in Vegas in the last few years, can you please tell me what is your annual vacancy rate?

Thanks,

Phat

[Account Closed]

Phat,

Not owned just one, but several in Vegas. He bought them during the mortgage meltdown because the numbers looked fantastic. Well, at least they look so good on paper. His timing was impeccable. He ended up selling them all to the next sucker last year and this year if I recalled correctly. He made some money, but it wasn't worth the headache. I'll let him chime in @Troy Fisher.  😊😊😊

With respect to Fresno, how was our experience with looking at that 46-unit building in Fresno @David C.? Putting things in perspective didn't it? It was an eye opener for me. We had quite a bit of fun that trip though. Remember that girl we talked to who was being evicted with her mom? She told us she had to go because she has a job interview at 3pm. We looked at our watch and it was 3:30pm. LOL!

Everything in life has a price Phat. Something is cheap for a reason so is something expensive. Chasing yield will lead you to undesirable areas, where you're not ready to deal with the issues. I'll leave you with this saying from Master Oogway. "One often meets his destiny on the road he takes to avoid it." Just let that saying sink in. It may not make sense until you're actually in those shoes. By then, the damage has already been done. Getting out may end up more costly then when you first got in.

Best of luck.