All Forum Posts by: Account Closed

@DanielKay Mordehai try calling Casey at Strawberry Property Management. She is good and solely focuses on property management.

@Zhuang Liang Yes, it has. We are seeing it at all price points. I just helped an investor sell one of his rental properties and the primary Buyer offer $25k over list with a clause he would pay $7,500 over appraised value. The home was listed for $550k and appraised for $550k but closed 6/18/2021 at $557,500 (multiple offers received). The luxury market is also active for purchases and surprisingly investments...my two next vacant rentals are being listed for $10k/mo (furnished in a guard gated neighborhood) and $18k/mo (unfurnished in guard gated). I believe this will run for another 18-24 months while interest rates remain low but that's just my professional guess.

Dividend stocks? Might be an option

@Joe Splitrock our local economy lost 114,200 jobs during the pandemic that have not returned. Many people are moving here because they are working remotely (tenants included). Based on stats I heard yesterday there are 130 new Nevada residents every day which equates to 5.4 new Nevada residents per hour! This creates incredible demand for housing. 44% of these people are coming from California and the next highest states are: 4.4% from Florida, 4% from Arizona, 4% from Texas and 3.8% from Washington. 

I believe supply will increase in the next 6-9 months but I have no idea if the demand will remain as strong as it is today. If the demand remains high prices should also remain steady. There are so many unknowns given the pandemic it's difficult for anyone to predict housing prices in the future.

To your point, many investors who purchased in the last down-turn (and have access to their homes) are selling given our current market conditions. When I check listings on our local MLS many sellers are LLCs. The cycle continues...primary Buyers purchasing at high prices with financing and minimal contingencies and investors selling high.

My personal opinion is that it will take 3-5 years for our market to normalize. Given historical data our market tends to overshoot the highs and go lower than the national average during economic downturns. On a side note, as a residential property manager of detached SFRs in A&B neighborhoods, I have real world knowledge that some tenants who moved here from California in 2020 already know they are being called back to the office Fall of 2022. Over the next 3-5 years I believe corporate America will realize employees are more productive in a cubicle than they are working from home.

Purchasing investment real estate has so many personal factors it's impossible for an agent to offer timing advice. I'm helping a client right now that is purchasing a Summerlin Investment Property ($30k over list) just because he has nothing better to do with the money. He doesn't want to put the money to work in the stock market because his personal belief is the stock market is overvalued.

My passion for residential real estate started as a child. My godfather was my mentor and I purchased my first investment property in 2001. I still remember I secured a 15 year mortgage at 5% interest. I bought a 1 bedroom condo in Scottsdale Arizona for $93,000. In 2005 it was worth over $185k and then by 2009 it was worth about $55k. Today it's valued at $212k. Oh the cycles of real estate...I love it though!

@Mary L. the 15-20% increase in residential housing prices we've seen the first 4 months of 2021 is unsustainable.  That's the scary part of such a quick increase in property values. If you log into LVR website and click on the "The Economy We Are Rebuilding" economic market update (posted today) it's fascinating. Jeremy Aguero, Principal Analyst at Applied Analysis does an outstanding job explaining our current housing market. There are some fascinating stats but too many to list here. 

@Frank H to answer your question my opinion would be to wait/watch but I'm sure my opinion is unpopular with many on this site. I'm a seasoned investor and don't have the desire to compete with emotional primary buyers in the Las Vegas market nor compete with hedge fund investors paying $30k over last comp and trying to get $500 over market rent comps (like that house in North Las Vegas). When markets are doing unpredictable things like having values increase 15-20% in 4 months and rent rates increase to unrealistic levels in a short period of time this isn't normal. 

Someone told me on this site already that they don't need a PHD to understand the real estate market but I believe this article from a Senior Industry Fellow at Joint Center for Housing Studies of Harvard University is helpful. There are several reasons that, cumulatively, seem to be causing this unusual dynamic of sharp house price increases during the pandemic.

1. 1. Ultra-low interest rates.
2. 2. Housing production shortfall.
3. 3. Fewer houses for sale.
4. 4. A shift in family spending towards housing.
5. 5. A pandemic-induced acceleration in the purchase of second homes.

All of this creates a perfect storm, where long-term pressures are joined by short-term ones to push the prices of houses higher at an unusually rapid pace, easily overwhelming the downward pressures that come from increased local unemployment during the pandemic. 

I personally believe that our local government has artificially limited housing supply with their housing pandemic policies.

@Frank H the house is in ok condition...definitely worn. Kitchen is decent with granite counters. There are personal modifications (multiple brick flower plants pushed against stucco exterior/bench seating in kitchen) that were most likely done by the previous owner who lost the home in foreclosure about 10 years ago. Current tenant is vacating at the end of June. List price is $364,900 and probably needs about $10k in maintenance (interior paint, new carpet, roof repairs, removal of brick flower plants and patch stucco, deferred maintenance, etc.) and fixed up it would probably fetch $1,795/mo rent. It was built in 1992. Based on our MLS data it appears to have been a rental since 2013.

@Frank H will do. The tenant is opening the door for us so curious what info she offers (if anything). 

Some rent rates are getting crazy here too. Check this one out from a company called Progressive Residential. I believe they are new to our market (and represent institutional type investors) as I haven't heard about them before. House is not listed for rent on our local MLS. There is no way this house should be listed for rent at $2,040. https://www.zillow.com/homedetails/423-Regal-Robin-Way-North-Las-Vegas-NV-89084/53360518_zpid/

I manage a house on the same street and $1,595-1,695/mo rent would be more realistic. 1,374 sq.ft. 3 bedroom detached SFR in a gated community of North Las Vegas.

@Phillip Dwyer completely agree Phillip. It has fallen out of escrow multiple times over the past year.  Good chance it’s thrashed inside. TBD. Viewing Monday