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Is it bad idea to invest in the property in area Crime rate D(-), North Las Vegas?
Hello ! This is my first post in Bigger pockets. My husband and I decided to invest in real estate together and are very excited for our journey. I have one property as long term rental and my husband has one long term rental and 1 STR. After we met, we purchased our primary residence together in 2022.
My husband and I are in escrow for a property in bad neighborhood in North Las Vegas. This is our first investment property and we are going to do STR. Crime rate is D (-) so it's not ideal area. We are going to have a property manager and projected cash flow is good. My husband and I have lived in a bad neighborhood in South Los Angeles (crime rate D) and we think that this north las vegas area is similar to where we lived in LA. We are going to check out the area in person this week.
We are thinking if number works out it will be still good investment. What are your thoughts on this? If you have invested in high crime rate area, please share your experience. Any feedback is appreciated.
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Quote from @Meri Hamada:
Hello ! This is my first post in Bigger pockets. My husband and I decided to invest in real estate together and are very excited for our journey. I have one property as long term rental and my husband has one long term rental and 1 STR. After we met, we purchased our primary residence together in 2022.
My husband and I are in escrow for a property in bad neighborhood in North Las Vegas. This is our first investment property and we are going to do STR. Crime rate is D (-) so it's not ideal area. We are going to have a property manager and projected cash flow is good. My husband and I have lived in a bad neighborhood in South Los Angeles (crime rate D) and we think that this north las vegas area is similar to where we lived in LA. We are going to check out the area in person this week.
We are thinking if number works out it will be still good investment. What are your thoughts on this? If you have invested in high crime rate area, please share your experience. Any feedback is appreciated.
A short term rental in a high crime area? I'm not 100% but I don't remember "High Crime" being one of the preferred search terms on either AirBnb or VRBO. Who would want to rent a STR in a high crime area other than someone committing crimes?
Owning C class or below property is a whole lot of work and risk. That's why it has the potential to have better returns - like all investments, higher risk usually means higher returns. You're going to work for this money, you can be sure of that.
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#4 Off Topic Contributor
- Property Manager
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@Meri Hamada what work have you done to identify your potential STR guest pool?
Hopefully, you can find data to show it won't all be drug users, crazy parties and sex workers.
You may want to check the laws on STRs in North Las Vegas: https://www.cityofnorthlasvegas.com/business/short-term-rent...
Where are you getting the "numbers" that show it's a good investment? I live in Las Vegas, own profitable LTRs in good neighborhoods. I can't imagine that investing a high crime area as a legal STR, could be profitable in LV.
STRs are all about experience. If guests have a bad experience then you will no longer get guests. Why buy in such a high crime area? Are there no other places to invest?
Check out https://fernwood.team/
They are very experienced in the LV market.
Why bother--just say NO!
Las Vegas is on the verge of a market over-supply of housing, and that will produce a large price drop. That's in better areas--not the pit-of-hell area you are describing.
I wouldn't ever invest in a high crime area UNLESS you raze the property and hold the land long-term, hoping for a turnaround.
I'd keep looking. Next!
Why bother? Just say no!!!
Why bother? Just say no!!!
Quote from @Marc Winter:
Why bother--just say NO!
Las Vegas is on the verge of a market over-supply of housing, and that will produce a large price drop. That's in better areas--not the pit-of-hell area you are describing.
I wouldn't ever invest in a high crime area UNLESS you raze the property and hold the land long-term, hoping for a turnaround.
I'd keep looking. Next!
Why bother? Just say no!!!
Why bother? Just say no!!!
I believe the market is at about 6 weeks of inventory, which is pretty low. Not a glut of homes for sale. Rental market is even more tight.
Hi Will,
The stats I've seen are showing about 50% of existing listings of homes for sale have price reductions.
While inventory is tight now, there will be a tsunami of houses and apartments set to hit the market in the next 6--12 months.
I'd hate to see a new investor walk into that without knowing what's going to hit the fan.
I guess time will tell the measure of the tape. We'll just keep moving forward as best we can.
STR.... high crime area... NO BUENO.
At best you can make a LTR work in a higher crime area if you are good at managing C/D class units.... but most first timers are NOT going to succeed in D class areas.
Living in a bad area is NOT the same same as managing someone else living in a bad area