All Forum Posts by: Cassidy Klundt

If considering a 4-Plex in Las Vegas, I see several come onto market, and seemingly 4-5 at a time - however they all tend to be C and D Class properties with renovations needed. Many times in C neighborhoods as well. Depends on your strategy. Are you looking for something that's a bit more turnkey or are you wanting to buy something with value add potential? You can always reach me here - or message me individually and we can exchange contact info. Happy to share more information. 

@Doug McVinua that's a fantastic way to bridge all perspectives shared. The condition of the pool could absolutely be the game changing decision. Great call out.    

Hey Joanna - I think the recommendation from Mike on making sure you have proper coverage is very sound advice. I think it depends on your rental strategy. I have a mid-term in Las Vegas, and it does exceptionally well. 2-3k profit each month. I rent for 30 days to 90 days at a time. It has a pool, and for properties similiar that don't have pools it brings down the monthly by as much as 2k/month in revenue. So it's a sizeable difference. I would venture to say it has everything to do with the draw of renting a house, in the heat, and not having a pool to cool-off. 

All really comes down to your rental strategy. If it's an LTR I could see where the rent difference might not be worth it, but then again insurance isn't that expensive either by comparison to rental revenue. 

Hey Abhishek - I have the same goals and target markets. Happy to share a bit of what I've uncovered if it helps. 

Rent to price ratio in NV particularly LV and Reno are pretty solid (20+). Depending on the area though, you can see YoY rent decrease, which seems to be a bit concerning. Need to take that into account. That said if you're looking for the Tier 1 cities like PHX or LV, you're likely going to face steeper pricing and/or more competition. With a strong network of brokers, a sponsor, nothing you can't crack into -- and per some feedback I've received on BP from veteran investors, they'd always suggest to look at logistics and proximity first. Hope that helps. If you are wanting individual cities in NV - I could probably shed more light on recent discoveries. Happy to share notes. Let me know what cities and areas you're considering as you dial things in. Take a look at Tier 2 markets as a part of your research. I'm finding some value in doing that. 

Hello BP Community. Looking for advice on what to consider for my top 3 MF markets. On paper, things like higher rent to price ratio, average cap rates, and high rental %'s in the area seem to be the best data points to atleast steer me in the right direction. Is there a best top 3-5 data points to consider, when trying to narrow in on a market? I know it's a bit of a loaded question, but curious what the best practices and experienced investors say. 

As it stands, I've narrowed down my interest to Las Vegas NV (primary, I live here), Albuquerque NM, and considering Dallas, TX. On paper Dallas seems like a surefire winner, and I know its experienced tons of growth. But do I then worry about hedge funds and large investment type companies as my competition in a market like that? Same for a market like Phoenix? 

Fill me in on what you think! 

Thanks @Dmitriy Fomichenko I'm certainly someone who likes to dive right in. Happy to share - can't wait for the next steps this year!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $326,000
Cash invested: $40,000

I own a single family home in Henderson, NV - recently renovated and converted to a mid-term rental little over 5 months ago. We've had 91% occupancy and generated $24,000+ in 163 days. We use AirBNB, VRBO, and Booking.com. We'd like to get into co-listing and co-hosting for revenue generation, and otherwise our long term plan is to have a portfolio of 10 SFH properties, and move into the MF Home space.

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

I've been watching the STR space unfold for 2 years, and decided to jump into the space in June of 2023. My interest in real estate has definitely grown over the years, and my need to generate passive income has definitely grown along with it.

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

We originally bought the house in 2015, refinanced in 2021, and had a unique position as a result to leverage the equity and convert to an asset.

How did you finance this deal?

Traditional financing. 30 year through conventional lender (PHH Mortgage)

How did you add value to the deal?

We renovated the kitchen, the BBQ Patio, the 1st floor tile, the master bathroom/shower, and replaced all furniture in 2023 to a new look/feel of the property.

What was the outcome?

We now have an asset that generates 5000-7000 per month in additional revenue, and 2500-3500 profit. It took us 6 months to recuperate the renovation cost of 12k. Insurance covered the other items like tile replacement, when a leak were found in 2015.

Lessons learned? Challenges?

Evaluating renters/tenants is an art form. Where you have rules in place for things like pets, or number of occupants, stick to them! The odds that by going against them to benefit a tenant, especially in times of solving for vacancy, are slim that it works okay without major difficulty. Yes real estate is the game of solving problems and are oftentimes welcomed, but in the mid-term rental space we're finding some tenants simply aren't worth the hassle.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I learned from mentorships with Jon Farber and Derek Cheung that both specialize in the STR space.