All Forum Posts by: Michael Robbins

@Mike Kundla I suggest focusing and inventing in a market that you have the most familiarity with.  So, likely that would be where you live now.  I am not a big fan of investing out of state unless that investor has a clear understanding of the market.  I am not a fan of trying to "time" the market but I do believe it would be wise to see how things develop over the next several weeks in terms of home values.  Regardless of when you decide to invest I suggest ensuring you are in a strong position to weather any storm.  For example, when analyzing the rental rate vs your expense make sure to have a wide margin of safety.  If you are profiting $1 or negative then I suggest walking away.  Make sure you are in a strong financial position.  No credit card debt, no car payments, etc... If paying off your debt offers a greater or similar return to investing then I vote to pay off debt.  Look for instant equity, a deal, special situation, or maybe you find a home that has been under performing as a rental.  I like deals where with some paint, new appliances, etc.. you can push the market rate... 

@Nadir M. I manage properties in Las Vegas and Henderson NV.  I suggest removing the listing from the market and only put back on the market when it is 100% ready.  This way you (1) manage expectations from perspective tenants by letting them know the property is being leased as is and no further improvements will be made.  And (2) Your conversion ratio between showings and submitted applications will be higher. I also suggest preparing a qualification acknowledgment form that lists what the application qualifications are specifically.  For example, 3x the rental amount, nothing 30 days past due,  etc... be sure not to violate any fair housing on the list.  

Take a second look at the Seller Real Property Disclosure you were given.  One of the sections covers "any other adverse conditions or aspects of the property that materially affect its value....But even with that, as some others have already mentioned, Las Vegas is in a valley and we have airplanes all over the place. 

@Brandon Norris pool (inground) have challenges so I would assume above-ground would be even more challenging.  If you decide to keep the pool verify everything is up to code.  

Hi @Jeff Aponik I am a Realtor and property manager.  My office is about 5 minutes from the Raiders practice facility in Henderson.  Feel free to reach out anytime with questions.  If apartments are the goal then there are several along St Rose Pkwy (Veritas Apartments, Elysian at St Rose, etc...).  There are some condos on Seven Hills dr as well.  And if townhouses become a consideration then look into Inspirada (about 5 minutes from the Raiders practice facility) where there are several parks, dog parks, playgrounds, community pools... The price points for the Inspirada townhomes will run in the $2,000-2,500 range depending on sqft.  

@TaRa Mehta I require "verifiable proof of income" and specify what the proof of income is to entail.  If you has already made it clear that you require last three months of paystubs then I would stay firm.  Make sure you apply this same requirement to all applicants.  If the applicant is already fighting you on this just think about how this applicant will be as a tenant.  

@Julian Sirkin if the HOA documents/Resale package clearly state that a home may not be rented for less than six months I would make all your calculations based on that fact. The HOA may not be effectively enforcing the restriction now but if they get a new board then maybe they will start putting the hammer down. I would only make the purchase if you are comfortable renting the home out on a 6-12 month lease term.

@Lesley M. I manage some furnished rentals in Henderson where the shortest lease term is 30 days.  I have been hesitant to buy or manage anything with airbnb in mind due to the fact the laws appear to be a moving target.  

@Dan J. I suggest selecting a market that you are personally most familiar with and within reasonable proximity to where you live.  In terms of price point I would focus on a price where you are not  over leveraged.  You should feel comfortable making payments (if you are getting a loan) during vacancy and have plenty of reserves.  In this market we need to be ready for anything, and that includes a downturn (no predictions here - I am still investing and manage rental properties in Las Vegas | Henderson NV).  Lastly, be in it for the long-term.  Do not buy anything that you do not intend to keep as a rental for many year to come.  I like keeping a rental property and making incremental improvements (small investments in new appliances, paint, bathroom fixtures, etc..) to assist with rent growth.  For example, if a rental property is generating $2,500 per month and you spend $3,000 to push rents to $2,750 per month = that is a good return on $3,000 invested. 

@Brian Kelley the rental home value is going to be based on comparable sales and not the cap rate (assuming this is not a multi-family property).  If the home is currently occupied by a tenant then the new owner will have to assume and honor the current lease.  I have listed and sold several properties that are tenant occupied in both Henderson and Las Vegas NV.  If the lease rate is not at or above the market rate then it may not be as marketable vs non-tenant occupied homes.  If the rental market rate is not good then consider offering to let the tenant out of their lease early.  If the tenants do not want to move early then it is important to show an investor what other value the property might hold such as a special location or potential for good rent growth with some improvements (after the current lease ends of course(.