Las Vegas Quad Plex Investment

[Christian Bishop]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $470,000
Cash invested: $36,000

Las Vegas Quad Plex Investment - 1.5 Miles from the strip

What made you interested in investing in this type of deal?

Rental income

How did you find this deal and how did you negotiate it?

MLS - Leaned on a realtor . Could have done a better job finding a deal off market. This property was not under duress. Paid the appraisal price.

How did you finance this deal?

FHA

[Christian Bishop]

Hi Michael,

Looks like a lot of us have done well on the appreciation side of things thanks to the market. Buildings in my community like mine are selling for $600k+ now. I ended up investing $50,000 to remodel two units when I got vacancies. I was able to increase the rents from $850/$900 to $1300 and $1350.

I had one tenant refuse to pay leaning on the eviction moratorium costing me 10 months of rent. 

Turns out my building needed more work than I originally understood. I had a general idea I would remodel when I would get a vacancy and upgrade them one by one. BUT I came to realize that some type of remodel was a requirement to get the type of tenants I wanted on site. Small but important mindset shift. "I would like to renovate" vs " I have to renovate" lol

I have two units left to remodel but the same tenants are still living in them. The rents are at the lower $900 range so I will most likely move to give them 30 day notices and remodel each . Ill stagger them to do it one at a time... 

I like the Vegas market. I live here personally transplanting from Los Angeles. Duo and Quad plexs are generally in C-B class areas so you have to deal with that. Single family and flipping seems to be a nice hustle for people like Ryan Pineda here locally. Not sure the rental market will bare the prices you need as an investor with single family homes at the moment. Looks like it will take years until rents creep up in the single family space.

Overall I am happy with the investment. With interest rates + prices the way they are it's discouraging to keep pushing building my portfolio. I was able to acquire 10 units across the country the past two years.