All Forum Posts by: Bill B.

@Samuel Wilson

In Las Vegas I’ve gone entirely with sfrs instead of condos. 

Yes houses will be more expensive, over all and per sf. You probably won't get away from hoa's as the number of houses without HOA's has to be sub 20% and mostly the older ones or custom builds.

But, while the HOA's will tend to be lower, my biggest reasons would be...

Most people call a house their home, a condo is usually a stepping stone to a home, so they stay longer.

With the house you get a yard with a direct access for their kids and or pets.

You get an attached garage to keep themselves and their car out of the sun and the walk with groceries is shorter.

You get MUCH less conflict between tenants/neighbors when they don’t share a wall, a yard or parking. 

Good luck with your search and make sure you determine your neighborhood, there are many very different neighborhoods separated by less than a mile in Vegas. 

If you are independently wealthy or have a boatload of equity in the property buy an umbrella policy, otherwise I wouldn’t bother With an llc.

And of course....

These words were typed by a non-lawyer saying what he would do, now what you should do. 

Good luck 

@Sarah Smith

I’ve bought about a dozen buy and holds here in Vegas and have yet to sell one as I haven’t found the “next step up” please let me know what you find if anything. 

Thanks. 

-Bill

@manish a

No need to apologize. I simply like to talk real estate and truly believe adults only learn when they find out they were wrong about something and I try to learn everyday. :-)

Vegas does make huge piles of jobs when they build new casinos and convention centers (the $10 billion I mentioned earlier.) but most of the jobs are 50 here for a new car wash, 50 over there for a new fast food chain, a few hundred over there for a new school or library. All of those examples come from within 5 miles of my house (plus a new sprouts and a new petco) and I live in a low growth 20 year old neighborhood. We didn't get the 10 new car dealerships (though now that I think of it we did just get a new CarMax 2 miles away, so never mind.) or the new hospitals, quick care centers, the giant VA hospital, the new airport terminal, the giant highway expansion including interstate 1 finally being started. Faraday did screw us on the new car factory but at lest they paid to prepare the land for the next guy.

I also think we draw a lot of people that make big money on the internet or while traveling they figure why pay state income tax. Like I said. I’m no expert and I almost expected to be proven wrong but This was more about clearing up my misunderstanding of your facts. Take care and have a good day. 

-b

@manish a

40-50,000 new houses in 10-15 years means a complete collapse of the Las Vegas home building market. 

That’s 3-5,000 new homes per year. Down from the current 8-10,000. heck. They’ve probably build 25,000 since 2015, so if you’re saying 40,-50,000 in 10-15 years from 2015 that means only another 15-25,000 houses In the next 7-12 years? That will be a disaster. 2,000 per year?

In 2005 they built 40,000 houses in one  year. You can say that was too many. But is 20% of that number too many? You seem to be saying 10% is too many.  If I was a betting man I would say/hope/pray the number is much higher than 50,000 in 10-15 years of building.

it’s all relative. When you have a million people in the valley and they have about 3-4,000 used homes to choose from. That’s a pretty small number. When builders going crazy means maybe 10,000 new homes (1% of existing population not including transplants.)

Heck. I would bet we get a boatload of New York and California baby boomers moving here to avoid the taxes. 

Depending on where you work many people tend to write offf at lest 25%, MAYBE 50% based on location. Most people ignore the north east and they used to ignore the Southwest. You want a single story? Hard to come by if you don’t. Want small too. 

When the casinos and and the convention center plan to drop $10 BILLION By 2020 not including the new stadiums that’s going to create a few jobs. 

@Terry Lao

I doubt they’ll give you any benefits for your current building but it should be a good incentive to buy more. If you believe there will be a bunch of price appreciation over the next 10 years you could could 1031 your current 4plex in to another in the same complex and have current and future taxes. 

@Dave Foster

Thanks Dave, I assumed that was too big a tax give away. 

Do you have any experience with these opportunity zones? They say any untaxed capital gains invested (I assume they mean 1031 exchanges) in to these areas will have “zero taxes on any capital gains” if held for a minimum of 10 years. 

I do assume they mean new capital gains over those 10 years and any untaxed capital gains that were 1031’d in to the properties in those zones will be tax exempt. 

I also assume that depreciation will still have to be recaptured and paid in these zones? Even if it still must be recaptured it seems like a pretty big tax give away that I’m considering investing in as the governor has just specified a bunch of zones in the Las Vegas valley. 

It sure would be nice if they had a department or employee in charge of explaining the ins and outs of the program they want everyone to use. 

How about this. 1031 exchange several properties (or 1 big one) with 100’s of thousands or millions in depreciation and capital gains in to the edge of one of these zones with a fourplex or several? (Or in others cases, a large multi) hold for 10 years and save 100’s of thousands in taxes. Especially if depreciation is exempt as well.)

Question for @Dave Foster

Dave, when you do a 1031 exchange do you have continue to track depreciation on he previous building for future 25% recapture tax? Or do you just keep track of the new cost basis, thereby avoiding the recapture of that depreciation and convert it to regular capital gains? (A savings of 10-15%). (And of course tracking the new depreciation separately.) that alone could be worth 10’s-100’s of thousand in taxes. 

Vegas prices are 20% below 2008 prices. How much lower do you want them to be?

I rented houses right through the the great disaster of Las Vegas “crash” I wa raising rents as people losing their houses sure didn’t want to live in an apartment, and doubled down and bought a bunch more. If the rent covers the payments what does it matter what it costs. 

When I was buying houses in 2008 for $100k “friends” and family would say what if it keeps going down?  Down to what? I’m putting 25% down and in 15 years they will be paid for. Do you think they’ll be worth more or less than the $25,000 I put down in 15 years?

Is there any market in the US where you think houses will be cheaper in 15 years than today? THEN DONT BUY THERE! 

Vegas is the great cautionary tale...ONCE, in the history of the city, prices have dropped more than 5%. They went up 14% last year, and the year before. If they dropped 25% tomorrow you’re up 3% over just 2 years. 

I hope anyone talking about the next great real estate crash has zero dollars in the stock market and is renting the place they live in.