All Forum Posts by: Shane Means

Hi Marco,

I recently bought a condo in Vegas for a buy hold.  Its true that you loose a little bit of control as Dan's link points out.  If the deal makes sense, I wouldn't rule condo's out though.  For me, the condo I purchased was a nice entry into RE investing that didn't cost me much.  The square footage is generally smaller, so light rehab work is easier for me as well.  

If you do start offering on a condo and you need to finance it, try to vet the number of non-owner occupied units in the association early.  Lenders won't loan on communities that are over 45% non-owner occupied.  Realtors and local lenders can sometimes help you out there to see the last loan made in the complex. I call this out as it's no fun to pay for inspections etc just to find out that the Lender Certification will fall through when finalizing the loan.

I hope this helps.

Hi @Joe P., for the 428, actually it's 443, it breaks down as follows:

- Property Tax: $33

- Insurance: $35

- Repairs: $75

- HOA: $177

- Property Manager: $123

I have CapEx split out separately and I don't have a lot slotted for it ($50 a month). This is obviously low but its a condo. No roof, no external repairs. I'll see what the actual expenditure is as I go. I'm definitely cutting it close to break even.

Hi @Nick Elg, I found a condo in Las Vegas that I went with.  Its a little closer to home, low property tax, and a lot of employment.  I'm still interested in Ogden and the surrounding areas so keep us updated on what you are doing.

Hi @Joe P., 

I don't expect a lot of appreciation on this property.  Its high was 162,000 in 2005 but I think it will take a while to get near that again.  I'm really just trying to get some momentum going without going out of pocket each month. I have to start somewhere ;-)

Rent: $1050

OpEx: $428 (property tax, insurance, property manager, vacancy rate, repairs)

Mortgage:  $446

Cashflow: $176

When do you think you are doing your next deal?

Shane

Investment Info:

Single-family residence buy & hold investment in Las Vegas.

Purchase price: $106,200
Cash invested: $32,200

3/2 Condo in Mountainside Condominiums

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

It would cash flow with a small investment down

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

MLS, lots of reviewing each week.

How did you finance this deal?

Heloc for the down payment, conventional financing for the rest

How did you add value to the deal?

I didn't add value. I still have a lot to learn on rehabbing and BRRR.

Lessons learned? Challenges?

- Follow through on inspections. Take the time to look into issues found by the initial visual inspection.
- Try to get confirmation that the condo is financeable before you pay for appraisals, inspections, etc. If too many units are non-owner occupied, you won't get financing. Greater than 45% non-owner occupied is the limit I believe.
- Know what the true rents are. I've found that sites that give you this can overestimate market rent a bit. Check with Realtors and Property Managers

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

Andrea Madsen, Keller Williams Realty in Las Vegas

Investment Info:

Single-family residence buy & hold investment in Las Vegas.

Purchase price: $106,200
Cash invested: $32,200

3/2 Condo in Mountainside Condominiums

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

It would cash flow with a small investment down

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

MLS, lots of reviewing each week.

How did you finance this deal?

Heloc for the down payment, conventional financing for the rest

How did you add value to the deal?

I didn't add value. I still have a lot to learn on rehabbing and BRRR.

Lessons learned? Challenges?

- Follow through on inspections. Take the time to look into issues found by the initial visual inspection.
- Try to get confirmation that the condo is financeable before you pay for appraisals, inspections, etc. If too many units are non-owner occupied, you won't get financing. Greater than 45% non-owner occupied is the limit I believe.
- Know what the true rents are. I've found that sites that give you this can overestimate market rent a bit. Realtors and Property managers can be more accurate

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

Andrea Madsen, Keller Williams Realty in Las Vegas

Hi all, I'm a newb from Goleta, CA.  I'm looking  at rental properties in Ogden that cash flow. I saw a few 2bd/1bath duplexes that might do it.  @Mike Gallagher,  any neighborhoods to stay away from?     I'm hoping to find something around 140,000.  We'll see... Thanks for any feedback.