All Forum Posts by: Joe Daigle

What area of Las Vegas are these properties located?

Jack & Co., CPA’s Ltd

702-798-8994

Ask for Mia

The first key to real estate is location location location.  I would factor expenses at 50% for that property.  

Buying based on future appreciation is a tough business to run.  Because anything can happen in 5-10 years plus how long do you want to wait once you get over stressed about a negative investment.

There’s a reason that price was fairly low.  

Jack & Co CPA’s Ltd

702-798-8994

Ask for Mia

Casey, you are a very astute person. And I’m sure you have good intentions.  But the moratorium isn’t for just the low-end renters.  That’s phooey!

We have rentals in providence and summerlin.  And we are sensing and seeing the coming fallout from —loss of income (job reduced hours) and career changes ( job is completely gone) Currently the rents are still being paid.  But as an investor it’s looking pretty scary  

Right now there’s a lot of casino properties that are still closed—-encore, palazzo, half of station casinos etc.  Also most tour companies aren’t operating or barely operating. These are the jobs that most Las Vegans hold.  And they pay well.  

But with tourism down more than 50% ( 45 million visitors in 2019/ 19 million tourists in 2020).  We are hoping for the best but very much aware of the worst.  

Remember Las Vegas is a boom bust type town.  

 You are so right about most multi family doors in Las Vegas.  But I’m sure you would agree that appreciation isn’t guaranteed.  So, that metric is just icing if it holds.  Right now there’s a moratorium holding up a lot of bad news.  Until that is discontinued, we none know if Las Vegas is going to turn into 2008-2012 or if it’s going to continue with the current uptrend. 

Every few years the media does the “ sky is falling “ rant about who’s moving out of California.  But when you look at the net number for California inflow/outflow it’s always positive inflow.  

As a native I’ve heard that whistle for decades.  Like Mr Song said, most are retirees and people that can’t afford to live there.  Which is good for the economy.  Because the inflows are usual younger and higher income people that want to be in California.  

Our properties haven’t had a sustained vacancy problems since 2009.  Every door has an average tenant stay at 7 years.  So don’t believe the hype. 

Let’s wait and see.   I’m in Las Vegas and yes there’s a lot of people moving in.  But there’s not a lot work and unemployment is very high.  Coupled with the moratorium on evictions.  I’m sure all numbers are going to change as the year progresses.  

Invest where you are comfortable and have “ working” knowledge.   Most out of state investors end up becoming absentee owners who want out of their situation. Because what sounds great on a forum, become nightmares to many.

 I recall when these type forums were touting Michigan (Detroit) as a great place to invest.  And I know a number of people—from Arizona and California—-that acted on that information.  Most did well.  But they were the ones with either working knowledge of that area or friends/family from that area.  Those that were following the crowd got burnt.  

The issues they faced from bursting water lines, heating units failing, extreme wear/tear on roofs etc.  issues they had never experienced in their locales.  Caused them more headaches than the property was worth (cashflow, appreciation).

All of these investors loss more money than they could have made by being patient and investing where they lived. 

I love my properties in Southern California.  Yes, the state is tenant friendly and expensive. But compared to the assets we own in Phoenix and Las Vegas (where I live) the returns are better.  

Plus the pool of potential tenants is greater. I've never had a rental stay vacant longer than (2) weeks. Whereas our Vegas properties have continuously had vacancies that last for a couple of months. Mainly because our Vegas properties are SFR's; and Las Vegas has a oversupply of those type rentals available.

Also I hear most people saying buy in certain areas that are considered “hot” right now.  I remember when they said the same about Detroit.  And a few co-workers did just that.  Until they experienced that first winter and found out the cost for repairs on heating units and roofs (capex) were eating all their profits and some. 

You should invest where you are most comfortable.  Chasing areas because they are being hyped by promoters isn’t going to work.  Like wai Chan said, Texas has some of the highest properties taxes in this country.  The Midwest has winters that causes extreme wear and tear on your property.  Every area has its own issues. But if you are familiar with area handling the issues are a lot easier.  

Good luck.