Visiting Vegas - Agent or self tour

[Gerald F.]

Hi all-

I have been looking at the LV multi-family market for sometime now and I’m going to visiting next week and was wondering what folks thought some of the good neighbor hoods to tour around.   I’m looking for the typical conforming 2, 4, & 6 unit properties.   I’m not particularly interested in properties that are part of an association.

Any tips on where to start?

Thanks,
Gerald 

[Terry Lao]

@Gerald F.

I've been investing out of state, in Las Vegas since 2014. My niche is 4plexs due to the financing is same as SFR. Once you go into the 5 plus units, the loan is underwritten as commercial and probably not as good interest rate.

Most 4plexs are in bad areas and in older condition. No such thing as a new 4plex, best maybe remodel. A current search on Redfin results in about 78 multi's available and 5184 SFR available. Basic math shows percentage of 1.5% (78/5184), or for every 100 SFR, there is 1.5 multi's. This mean rare and limited supply compared to SFR.

Small pockets of 4plexs are in Spring Valley/Chinatown (400-450k), off strip/Maryland Parkway (350-400k), east of 95/near Summerlin (400-500k). 

If you eliminate the 4plexs with HOA's, then maybe 25. However, I had both HOA and non-HOA. Normal water, sewer, trash bill, for 4plex is about $250. One of my HOA's monthly is $660, and includes water, sewer, trash, gated, patrols, and one car garage. This I consider well worth the price.

For around 350k, value is in community called Parkway Villas. Can net $400-500 per month with 25% down financing.

Terry