All Forum Posts by: Terry Lao

@Mayson Madden

I own 4plexs in Las Vegas. The best advice I can give is to get a home warranty for the 4plex. The first year is most commonly paid for by the seller. There is an introductory price of around $600-700. Use the first year as a gauge if it is worth it or not. In my experience, in Las Vegas, the HVAC is the most crucial for hot summers and cold winters. Just one AC or heater bill will cost around $300. Imagine times that by 4 due to the number of units. The home warranty also covers roof, appliances, water heater, plumbing, etc. There is a deductible each time you call around $75. 

I think its worth its weight in gold.

@Zack Williams

To answer your question, $200-300 above market value just because of section 8, is probably not possible. I can raise the rent of section 8 through a rent increase request. However, in the process, I need to provide comparable rental comps. For example, if rentals for 2 bed/2bath in Centennial area are $1000, then you can get $100 above. Not sure about $200-300, but you don't get if you don't ask.

I just raise about $25-50 from the last rate. 

@Zack Williams

If you have apartments in C/D class properties in East Las Vegas, then section 8 is the why to go. You will get higher rents and direct deposited to your bank account the first of the month. Who would have guessed a pandemic/coronavirus, but having section 8 rents guaranteed brings peace of mind. 

If you have SFR in B/C class properties in any area of Las Vegas, then amount of section 8 award might not meet voucher award. The most common award is for 2bed/2bath apartment around $800-900. I have heard of $1000-1100 vouchers, and rented SFR, but those are not common.

@Zack Williams

I have section 8 tenants in Las Vegas that are long term tenants that take care of apartment. I have had section 8 tenants that were short term and overall bad. The key is to screen the tenant. However, through trial and error, I suggest picking the tenant that is longer in tooth.

@Kevin Knight

If you are an passive owner who does nothing and sit on his butt or hire untrustworthy property manager, then it will sit vacant with not tenant. I'm an active out of state investor (southern cal) and invest in multi's in Las Vegas since Mar'14. I manage, lease, tenants, repairs, handyman, contractors, and all remotely. 

@Bill B.

Is it better to be mentioned and trolled or not mention at all?

@Phillip Dwyer

I would imagine that realtors get the information first from the GLVAR, then public and news agencies. I'll probably see news articles soon on the LV real estate market. You said that median priced SFR stayed around the same, which was 319k for Mar'20, but sales transactions went way down.

This could mean that escrows originated in Mar'20 are still trickling to complete escrow. I would think Apr'20 loan origination would take longer to process due to mortgage companies being swamped from loan refinances and low rates. Could also mean demand is still strong despite Coronavirus. 

@Ryan Plasencia

Best to finance especially with current low rates. Also, you don't have to buy all cash, save your money and leverage. Use FHA, even though you will have trouble qualifying, get a co-signer like your parents or close relative. FHA is only 3.5% down with relaxed qualifying, not same as conventional guidelines. Can probably use rental income from lease for that one unit you are going to rent. Just provide a current lease, provided that someone is currently renting now or going to rent.

Terry

@Jacoby Atako

Your initial goal, purchase 3-4, SFR, with ROI of 5-10%. This is possible in midwest, like Cleveland or Cincinnati. However, you better be aware of the property tax, like 5% of sales price.

The common belief is if you buy SFR, it is for appreciation. If you buy multi's, it is for cashflow. I went the cashflow approach in Las Vegas. However, I found that appreciation for multi's was way better than cashflow.

There are a few areas where multi's are pretty good, solid B to B-. Spring Valley, close to chinatown, 4plexs going for $400-450k. East of 95, near Summerlin, $450-500k. Off strip, beheind MGM casino, off maryland/tropicana, $350-400k. 

There are about a handful of 4plexs that can cashflow net $500-600. No way a SFR can do this, unless you pay all cash deal.

Terry

@Jacoby Atako

opps, typo above. There are 42 condos/townhomes for every 100 SFR, (2226/5292=.42)

Terry