Buying an investment property in Las Vegas

[Brandon Bonfiglio]

Hi, I am looking to invest in an STR potentially in Las Vegas. Im aware how strict Vegas is with STRs but i saw if you were to buy a hotel room like at the Palms or MGM it could be used as an STR without any issues. Is this a smart route to go? Any advice would be appreciated.

[Dan Mumm]

Condotels are BRUTAL. Avoid at all costs. Management fees are insane, typically 50-60% of GROSS rents. They are MAX 2-3% cap after fees. Also they are bad assets long term, very high association fees with poor management, don't appreciate well or hold value, very volatile market, very difficult to exit (12mo+ of inventory).

Only use is for someone who wants to have something on the strip if they come into town very often to visit and want to offset the cost. Even then, makes more sense to just rent a damn room at the hotel.