Real Estate Investment: Summerlin

[Kuang Lee]

Hello esteemed Bigger Pockets colleagues. I am looking to make a real estate investment in the Las Vegas area in the 140-150K range, paid in cash. I know that means it’s a condo or townhouse, and in my recent real estate trip to Nevada (I live in the Bay Area), I saw nice 2/1 and 2/2 condos in the Summerlin area. What do my LV investors/ real estate experts think about that area? The renter market? The quality of renters in Summerlin? Would this be a good investment?

Thanks in advance! 

Kuang 

[Dan Mumm]

Hi @Kuang Lee, I'm a Vegas Realtor/Investor, and I'm very familiar with the Summerlin rental market. I will shoot you a private message. 

However, for everyone's insight: Summerlin in general is an A/A+ class area. Some of the best school zones, most amenities, highest quality of living, higher quality tenants, long term tenants (doctors/nurses at Summerlin hospital), most expensive. Cap rates here will be accordingly lower - expect 3.5-4.5% as opposed to 8-10% in D/C/B- class areas.

This depends on your investment strategy, but if you are looking for long term holding, appreciation, low tenant turnover, Summerlin is a great option. One thing that will restrict you here is HOA/SID/LID fees. Summerlin properties tend to have multiple associations which restrict cashflow.

Please message me if you have more questions, I would love to help.