Las Vegas Rental properties
I have been kicking around the idea of purchasing rental properties in the Las Vegas area. I am a California native so this a new market for me and I do not have experience with out of state real estate. Anyways wanted to see if it makes sense to invest in that area and if so would condos or sfr be better?
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If you take a macro approach at the western US. Vegas is the most affordable city, anyone see it any different? It’s outside the most expensive state in the US. Like can you think of a city in Washington, Oregon, California, Utah, Idaho, Arizona that’s more affordable than Vegas, with 2 million people MSA?
That alone has to be an attractor to investors looking for upside in a market. The city is growing like crazy (cause it's affordable and again outside the most populated state). Reno is more expensive for rents, and median SFR sales.
My conclusion. Vegas is the best market in the west for value investors. In comparison for Nevada, Reno has more niche stability (Tesla just announced its investing $3.8 billion more here) and is a hotbed for the wealth out of the Bay Area. Which causes prices to be high and returns low. When I underwrite properties in Vegas I typically get a 1% range higher cap rate.