Craziness in Las Vegas market or just me??

[Jason E.]

In the past month I have visited, analyzed and submitted multiple offers for rehab properties in the Las Vegas area. Some of the properties have sold, and for much more that what would seem reasonable. Being eager to get my first flip, I'm only planing on making $15-18K profit. I would like to share a few of them and get some feedback or advice from more experienced investors.  

This property is in North Las Vegas in an area I would rate as a C+ area, consisting of mostly older homes built in the 60's and early 70's with nice size lots, for Las Vegas area, around 6,000 sq/ft.  These are the numbers I came up with for this property. The house was listed for $99,900, but in need of repairs and updating and had a pigeon infestation in the roof. The tile flooring did not match throughout the house, the grout lines were not even, and some areas around the edge of the time had almost 2" of grout instead of cutting a piece of tile for the edge. I learned that this property sold in December 2016 for $ 48,000 and was listed back for sale, with no work done at all in January 2017 for $ 99,900. 

List price $ 99,900

ARV - $110,000

Rehab - $12,000

Closing costs + interest $10,000. 

Offer - $ 70,000 

                                                       Sold Jan 31st (13 days on market)  $ 94,000

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The next property, only a few neighborhoods away, was built in 1959 and was obvious it had never been updated at all.  Still has the wood paneling, yellow and brown carpet, original kitchen cabinets and wood countertops, original windows, currently no heating system.  This property mostly just needed a facelift but looked pretty bad. 

List Price $87,500

ARV - $105,000

Rehab - $ 20,000

Closing cost + interest $9,500

Offer $ 60,000

                                   Sold Jan 31st (Within 30 days on market) $ 85,000