All Forum Posts by: Michael Robbins

@Eric Gorostiza congratulations on your first investment property.  I like new construction as a rental due to the warranty and expected lower maintenance cost.  Best of luck with having the home prepared for placing on the market.  Some unsolicited advice: I am here in Las Vegas as well and I advise my clients to install a ceiling fat in the primary bedroom and fixed above lights in the secondary bedrooms, do not install an RO system, and make sure to install window treatments.  I have seen it several times where a new construction home stays vacant because the owner has not installed blinds/window treatments.

@Jacob Beg flexibility is key in this market.  At the end of the day a home is worth what the buyer is willing to pay.  If there is nothing wrong with the condition of the home then price is likely the main factor preventing a sale.  Sometimes the "condition" question can be as simple as the home showing clean, good smells, bright light.... Take all that with a grain of salt as I have not seen the property and am only familiar with the Las Vegas and Henderson NV market.

@Kent Fang-Ching I am a property manager, rental property owner, and real estate agent in Henderson/Las Vegas NV. At the moment, homes single-family homes (detached) that can command $2,000 m rent range in price $375,000 to mid $400s. The HOA dues will range between $15-200m and I would consider the value B+. There are exceptions of course and several areas to consider. I would also note (as I am sure many people are already aware) that our market in Vegas has become "reasonable" and much more balanced in terms of what sellers are listing homes at. We are also seeing homes sell below list price.

@Justin Wilson I manage some rental properties in Las Vegas and Henderson with artificial turf.  It certainly helps with leasing the property out and provides for great curb appeal.  But be careful not to "over improve the property" and ensure the design/style of the property is in line with the subdivision.  If all the homes in the area do not have real grass or artificial turf then maybe there is no benefit.  Another point with artificial turf is to be very edited with how much and what areas you install he artificial turf.  A little goes a long way.  Consider installing small areas and fill in with nice rocks and shrubs.

@Matt Speer I would focus on the particular rental property and "true" comparable rentals when determining the average days on market.  For example, many times when DOM are pulled they include furnished rentals or rentals that are 3,000 sq ft when the subject property is 1,500 sq. ft.  When analyzing why a property may be on the market for longer than comparable rentals start with assessing the condition of the home (does is show and smell clean, any deferred maintenance, dark inside...).  Next, focus on the listing (did the PM use professional and attractive pictures... does the home have 2 bedrooms and a den/office but not listed properly?).  Last, price....  

@Lisa A. I would not lease your home unless you are planning to keep the home as investment property for many years.  There will be vacancy and maintenance expenses that will eat into your monthly cash-flow.  If you do decide to rent your home have plenty of reserves for when the AC or Heater goes down.  

@Mark S. If there have been no other lease violations then I would consider renewing the lease at market rent.  I would also ensure that you are charging late fees 5% of the rent and that it is specified in the lease that payments after the 1st are due in certified funds (cashiers check or money order).  If there are other lease violations, besides late payments, then I would non-renew.  In the renewal offer letter/notice of rate increase specify the new rate as well as any new provisions that will be in the renewal lease.  I also suggest send in the renewal offer asap and make it clear in the renewal offer that the tenant is to sign the renewal within 7 days of receipt of the letter.  If there is no response then provide your 30-60 day notice for tenant to vacate. 

@Michael Van In residential I look for a wide margin of safety.  I personally do not like $100-300 in cash flow.  I think it should be more like $500+++ since the rental rates, vacancies, and repairs will fluctuate (especially in the current environment). 

@Danushka Abeyasekera I suggest (if you have not already) walk the property again and confirm that it is 100% rent ready and shows well.  For example, when you open the door does it smell and feel clean?  Do the carpets need another clean?  Is it dusty? Is the lighting good?  After you have confirmed the showing condition of the home then take a look at the rental comps again.  Is it over priced?  You might also consider leasing the home unfurnished.  If you are going for furnished make sure the home is 100% furnished.  I have seen it where people go half-way with the furnishings and it never works out well. 

With all that being said, the market in Vegas is softer.  I noticed the turn in June-July with rentals and homes for sale.  But its not 8 months vacant soft.  

@Allen Wu there are several areas to consider.  To offer one example of Henderson you might consider "Inspirada" = single-family detached house, built 2012yr+, 2,040 sq ft, 3 bed, two stories, two car garage = $485,000 - 530,000 = leases between $2,300-2,700.  I have rentals in Inspirada, Green Valley Ranch, Anthem, Seven Hills (all Henderson).... so those are my choices.  If you want something with less maintenance (newer home) then Inspirada may be of interest.