New Investor in Las Vegas, NV :-)

New Investor in Las Vegas, NV :-)

Investor · Las Vegas, NV · Member since 2016 · 37 posts · 24 votes

Hey Bigger Pockets community!

I'm a new investor here in Las Vegas, NV. I've been here since I got stationed here in 2005 from Japan and got out of the USAF in 2006. I was a Realtor and sold REO properties from 2006 -2010 here in Vegas and then went back to school to use my GI bill and now I'm a software engineer working remotely for a company out of Denver,CO. I travel out to Denver every so often due to work and was shocked to see how high the real estate prices have gotten there over just the last few years! That got me back interested in real estate, but this time as an investor and not an agent.

I'm from a small town in southern Mississippi where real estate is still pretty cheap to buy but the rental amounts have started to get up to par with rental rates here in Vegas. I've been thinking about purchasing a duplex out there for quit some time, but years ago I either didn't have to income to come up with the downpayment, or the credit to qualify. Now I have the income to do so and I'm saving up a downpayment and I've been working on my credit for some time as well and it's the highest it's been in 10 years. I want to get ingrained in this community to insure that I make as few mistakes as possible when it's time to pull the trigger in a few months. 

I moved up to the Providence area of northwest Vegas from Summerlin and rented for the last year and half. My lease is up in July and I will have a purchasing decision to make in a couple of months. I do have questions about how purchasing an investment property can affect my ability to purchase a primary residence around the same time. 

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Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
9y

@Bryan Knight

Welcome to Bigger Pockets. Make sure to read the Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing

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  • Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
    9y

    It all depends on your credit ratio. All your loans including payment on the two properties you want to purchase should not be more than 41% of your income.  Are you planning to move back home? Rents are excellent in Mississippi relative to home prices, in fact I think it is the best in the nation, however, managing rentals is labor intensive. I don't think it can be profitably done long-distance unless you have relatives there to help. 

  • Dave VisayaPro Member
    Moderator
    Audio Engineer and Investor · Cebu City, Cebu · Member since 2013 · 7k+ posts · 881 votes
    9y

    Hey @Bryan Knight welcome to the site! It's great to have you!

    BiggerPockets
  • Aaron HowellBusiness Member
    Real Estate Agent · Crozet, VA · Member since 2014 · 436 posts · 223 votes
    9y

    The primary residence purchase will be a lot easier than an investment property.  Your debt to income ratio and credit most likely will be a determining factors among other things.  

    Story House Real Estate529 Reviews
  • Investor · Las Vegas, NV · Member since 2016 · 37 posts · 24 votes
    9y

    @Susan Maneck Thanks for the info on the ratios. It's great to hear your feedback on rent to home prices there also! 

    I'm the lone wolf of the family, and while I'm not planning on moving back, I do have my whole family there. Specifically my oldest sister that's a teacher there and is very business smart. Also my brother-in-law is a handy man by trade. I not against hiring a great property management company also. 

  • Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    9y

    @Bryan Knight

    Welcome to bigger pockets. The Bigger Pockets Blog https://www.biggerpockets.com/renewsblog/is a great resource for all aspects of real estate investing.

  • Investor · Las Vegas, NV · Member since 2016 · 37 posts · 24 votes
    9y

    Thanks for the welcome @Dave Visaya @Aaron Howell

    and @Mark Nolan!

  • Real Estate Agent · Las Vegas, NV · Member since 2016 · 11 posts · 4 votes
    9y

    Welcome @Bryan Knight! I'm happy to answer any questions regarding investing/buying a primary in Las Vegas and talking to a lender would probably get you the most accurate info of course on financing the primary vs investment.

    I personally purchased a home out of state for similar reasons you mentioned about Mississippi and have learned a lot this past year, especially how important having a solid property manager is.

  • Investor · Honolulu, HI · Member since 2016 · 1 post · 0 votes
    9y

    Bryan Knight;     buy your investment property in Mississippi as you will have a much better return on your investment with more positive cash flow therefore allowing you to pay it off earlier and move on to the next one. Make sure you have a reputable property manager in place. 

  • Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    9y

    @Bryan Knight

    Welcome to Bigger Pockets. Make sure to read the Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing

  • Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
    9y
    Originally posted by @Bryan Knight:

    @Susan Maneck Thanks for the info on the ratios. It's great to hear your feedback on rent to home prices there also! 

    I'm the lone wolf of the family, and while I'm not planning on moving back, I do have my whole family there. Specifically my oldest sister that's a teacher there and is very business smart. Also my brother-in-law is a handy man by trade. I not against hiring a great property management company also. 

    if your family is willing to help you manage that property I'd go for it! Have your sister help you choose the property because she will have a better idea as to the property values, neighborhoods, etc. Consider Section 8 tenants as it will be less hassle collecting the rent. As for property managers I see their houses sit there vacant for months and I don't understand it. If one of my houses sits vacant that more than a month it is because I'm doing some major repairs. It is very rare that I have to advertise a rental. As soon as they see the last tenant move out and workmen over there, prospective tenants are at my doorstep. I really find it hard to understand why there are any vacant houses at all in Jackson.  

    My advice: Let your sister manage your property and your brother-in-law do the repairs. I'm a JSU history professor, close to retirement, who only started investing in 2011. I now manage eight rentals in Jackson. And no, I didn't invest that much. Also, consider opening an account with Wells Fargo because, despite their recent problems, they are one of the few banks that operate in Nevada and Mississippi. My strategy has been to buy a house for cash (my first one was 15K and I went in with my mother.) Rehabbed it (cost more than anticipated, about 20K.) It then rented for $850. After a year we got a HELOC from Wells Fargo for 35K, paid off the credit cards. Had enough money to help my son buy his first house, a 3bdrm 1ba house for 23K. Not yet 30, he now owns three houses, including his principle residence (which is no longer that first house.) Wells Fargo is one of the few banks that gives HELOCs on rentals, another reason I use them. Closing costs are next to nothing and I keep the interest rates low by getting teaser rates, paying it off when the teaser rate expires, then getting another teaser rate. Since I buy houses in the 30-35K range conventional mortgages would be hard to get anyhow.

  • Investor · Las Vegas, NV · Member since 2016 · 37 posts · 24 votes
    9y

    wow @Susan Maneck that's pretty amazing! That's really inspiring and after reading your last response, I texted my sister to let her know of my intensions! You knowledge of working with lower cost properties is an invaluable resource and I really appreciate you sharing that information. I was looking at a few properties in that 30K price range and wasn't totally sure of how purchasing would work for them. So looks like cash is the way to go for that price range. I'll definitely keep in touch as this is a great strategy for me to follow down where I'm from. 

  • Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
    9y

    Since I partner with my mother on a couple of properties and she lives in Lake Tahoe, we opened up a joint checking account with Wells Fargo which helps a lot with the transfer of monies whether for purchase, repairs or rents. My mother manages my property in Tahoe and I manage her property in Jackson. The arrangement works great. 

  • Investor · Denver, CO · Member since 2016 · 9 posts · 1 vote
    9y

    Bryan

    there are several good mortgage brokers who work primarily with investors so most time you can get financing for that with out too much of an issue.  worst case scenario you may pay a bit over market rate if your credit and or leverage is not optimal.

    also go with a management company for the property 8-10% of rent) its worth it to not have to worry about the property.  Best passive income option.  thats what i do currently.

  • Investor · Las Vegas, NV · Member since 2016 · 37 posts · 24 votes
    9y

    Thanks for your feedback @Rajeev Vibhakar !!! 

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