All Forum Posts by: Bill B.

@Terry Lao

Doesn’t $1200 seem 2x too expensive? Seems like you could buy a 3x Biggwr house for that. Certainly 2x. With a yard. 

Zappos ceo definately was in the vegas news for building a neighborhood of them. And there’s a little market area built of them here. 

Suppose I could look em up and drive by see how they turned out and if anyone wants to talk prices and costs. 

If a traditional new fourplex is $100/sf these would be under $64k with no savings. I’d hope for $32k each to be a good deal?

I’m guessing You get almost no long term tenants or buyers at 640sf. Although that is just IMHO. 

Ps. Found a Vegas based company but they do theirs end to end. Maybe make a deal if we did 5-10 in a community. Did you see the 3 acres on Decatur?

https://docs.wixstatic.com/ugd/0499ba_d66c23278c9b4f558c818b39c4a08ce9.pdf

@Terry Lao

https://www.zillow.com/homedetails/3700-N-Decatur-Blvd-Las-Vegas-NV-89130/2092433580_zpid/

There are cheaper lots, but this is right on Decatur and has plans for 7 lots if we can build 2000sf foundation 4000sf 2 story fourplexes on it. When I started to look there are lots of 2 acre lots for for $200-$300k in the “boonies” (2-4 miles from shops, busses, restaurants) that might work just as well. Decatur is just such a main thouroughfare. Whatcha think? At least we have a baallpark price although I would prefer one that someone else has already installed the road and utilities. 

my quick 2 cents...

If it went up $15k and you sell, you walk away even? Up 1k? Down 1k? It will be close. 

I own one townhome, it’s my lowest rent $1,000/mo on a $130k house worth maybe $170k now?

I don't like your insanely high HOA. My highest is in Aliante at $39 x 2 $78 total.

If you have another $25k to put with the sunk in to this deal you might be able to swing one of @terry lao fourplex deals. 

Don’t sweat the $20/mo. What if it was plus $20/mo would you be excited? It’s fine. 

You might do what I’m going to do with my first possible sale in 20 years. If they renew, great, keep it, if they don’t, great, sell and move upward and onward. 

Their current deal is $985 for a 2 year deal. I’d probably suggest $50/mo under market rent for another 2 years, $25/mo under for a year and plus $100/mo for mtm. Has your current PM told you what he would rent it for if it became vancat today?

@Matt K.

He’s not saying you made more or less money. He’s saying if you put down 25% ($50k) and made $50k in one year (100%)  that’s a better deal than if you put down $225k and made $50k (40%) because you could have bought four of these last year each with 25% down instead of just one and made $200k. Or sell 3 and pay off the fourth with profits. 

He’s talking about percent return not actual gains. 

@Terry Lao

No. I think it’s a top 10 market return easy. Especially if you only count markets where houses are under $300k and fourplexes under $400k. I was just suggesting seller would make holding longer unless they need the cash. 

On the fourplexes ive found the same. Everyone’s interested but no ones coming forward with opportunities. Phil hasn’t suggested any possible land deals yet. I don’t think we even have a ballpark for land requirements and costs. 

May 1st I will know if I’m going to sell my first property may 31st. (Only $100k gain in 8 years, but I did collect $120k in rent.) if current tenant doesn’t renew I think I’ll sell. So I’ll have $200k to exchange in to something if we find it otherwise I’ve got other plans for it. 

Don’t forget. The realtors ar going to get $20k. And the tax man’s gonna get $12k. If he gets $310k his $85k turns in $53k. Certainly not bad. But only half as good as $100k. and if he’s selling he has to assume he’s not going to make that $53k plus rent next year? The 2nd year 100k is only a 33% improvement, Easier than the 45% increase he got last year, and the realtor only takes an extra $6k instead of $20k. Win win. 

Guys. The $100/door doesn’t mean anything...

Example 1.

$100,000 mortgage owner will let you take over payments, $1200 down to help him move, it’s worth $200k. He’s about to lose it to the bank anyway, $500/mo and it rents to a family friend month to month for $600/mo when you could get $1,000 when he moves out in a year to a new job. You’re “making” $100/door, $100k in equity, and 100%  return. 

Example 2

$2 million dollar house standard loan 25% down, 30 years at 4%. You’re payment is $7200 plus $1500/mo taxes, and $300/mo insurance. $9,000/mo. But the seller says he has a guy renting it mtm for $9100/mo.  Now you’re $500k is making $1200/yr until he moves out, taxes or insurance go up, or anything breaks. 

Example 3 (just cause I’m bored and thought of it before I hit post)

$1 million dollar 12 plex owner carries it for 10 years principle payments only. $16,200/mo plus your taxes insurance, we’ll call it $17,500. The renters are paying $1550/mo. ($18,600) In this case the cash flow is only $90/door/mo. But since you’re Income is $1450/mo per door, I think you’d still take the deal. 

I think the $100/door/mo started from Brandon's days in an area where "houses" cost $40k (or a fourplex was under $200k) and there was some owner financing. I do only SFR in Vegas and my WORST house is $600/mo. A good house brings in $1000/mo. These are all 25% down standard investor loans around 3.5-4%. Some are 15 year, some are 30 year, some are paid off already from their own cash flow. But they cost $125k-$200k each. You can't compare them to $40k houses, or small-plexes or large apartment buildings. Move your loans from 5-15-30-50 years and boom you made the monthly cash flow you want to brag to people about. Shorten the loan and you can complain about how there's no cash flow as you take in more and more profits until it's paid for.

It’s hard for me to suggest you buy a place, even with the plans of renting it out after you move out if you don’t plan to be here at least 5 years. If you’re single maybe buy something after you find someone who will pay you rent, maybe someone from the base?

Ps. The NE around Nellis is a “rough” neighborhood, especially if you don’t speak fluent Spanish. The NNE is “better” newer cheap houses as it’s still so far from Central Valley. 

Feel free to connect when you get here though my suggestion then may be to just rent if you don’t know your plans 3 years from now. 

Take care and as lame as it sounds thank you for your service. 

You’re probably looking to talk to @terry Lao.  I know he does fourplexes in the in the high 200’s. I don’t know if there are lot of 8-20 unit buildings in the Las Vegas valley. You may end up with 2-3 fourplexes in the same complex. 

@brandon Snyder 

Sorry, I did misunderstand. Maybe you can get the company shut down. I don’t know how much money is involved but as a “not a lawyer” I would assume all management fees should be refunded to the clients if they were lied to (defrauded). Most 5 person companies would probably fold if they had to hand back months of their income. Problem solved. You could email these clients and suggest they ask for a refund of all charges. I’m sure they have lawyers that would tell them for a few bucks if they’d win.