All Forum Posts by: Terry Lao

Hindsight is 20/20. When this original post was posted four months ago, the SFR median home price in Las Vegas was $307k. The Feb'20 SFR median is $316k, gain of 9k. The significance of reaching $316k is this was the first time has surpassed the pre-recession high of $315k way back in Jun'06. It took 13.5 years to reach it's all time high, while many cities passed their all time high many years ago.

Inventory is still very low, and interest rates for 30 year fix around 3%. Now, the X factor could be Coronavirus. 

As to my forecast below, SFR median to reach $331k by Dec'20 with modest increase of $1.5k per month. With overall, annual gain of 5.8%, which puts growth among top 3 cities nationally.

Terry

https://vegasinc.lasvegassun.com/business/real-estate/2020/mar/06/median-price-for-las-vegas-homes-sets-all-time-rec/

@Robert Adams

If multi's get sold off market, how would a buyer see them? Can you give a few examples. I'm thinking realtor word of mouth, pocket listing, wholesalers, or LoopNet.

Terry

@Marty True

I only have access to Redfin, which is a representation of MLS. There might be a few differences, but for most part, very close. I drove throughout Las Vegas many times in search of multi's for my 4plex purchases. I know there are many 4plexs out there. I'm just stating that my search of available 4plexs, only found 18 on Redfin. If search of MLS, then might be a few others found. Overall, not that many 4plexs for sale.

Reason. Only speculation, but there are only so many reasons.

1. Owners not listing

2. Keeping for long term

3. Condition, needs work and not listing

4. good cashflow and keeping investment

5. Other?

Terry

@Brad Bellstedt

I don't know exact number or where to find that information. When driving around the greater Las Vegas area looking at 4plexs, I did see a good amount. I just don't see that many list for sale on Redfin and MLS. When looking at the year built and age, the newest maybe 1990. One of mines is built in 1984. However, most are older and in bad areas. The bad condition 4plexs are bought as flip and remodeled for top dollar.

Overall, no new 4plexs built for over 30 years. 

Terry

@Brad Bellstedt

When you compare 18 4plexs to the number of SFR (3564), the percentage is (18/3564 = .005) or less than 1/2 of 1 percent. Another way of saying this is for every 200 available SFR, there is 1 4plex available on MLS/Redfin.

Yes, I do think 4plexs are very low in inventory.

Terry 

@Andrew Caldieraro @Bill B.

1.Go to below redfin link.

2. enter parameters circle in yellow. Will bring up multi's in Las Vegas. You can edit to whatever parameters you want.

https://www.redfin.com/city/10...

I just ran search on Redfin for 4plexs available on MLS. The search max parameters were greater than 6 bed and 4 bathrooms. The search results came back with 18, see below snapshot.

Does available 4plexs in Las Vegas seem rather low at 18?

Terry

@Frank H

To get around the mortgage or be smart, is to purchase a 4plex that is fully occupied and cash flowing. The lender will let you use the rental income to help qualify for the loan. The proof needed will be lease agreements. For example, 4 leases that show rental income of $800 per month. Lender will let you use 4 x 800 = 3200 to help qualify for the loan. If you are not an experienced landlord maybe use 75% of 3200. You will still need the down payment of 25%.

Terry

@Alex Aguilar

Sorry to hear that happen to you. Sounds like you paid $500 check if you have his banking information. Proof that you paid him will be the cancelled check into his account. The amount of loss sounds like a small claims case. You can search online for Las Vegas and small claims court. This will show you the process to get him served. 

Then in small claims court, it will be what is in the contract. You will need to prove that Anthony did not follow or say he will do per the contract.

Since there is no trust at this point, judge might ask if mutually agree to void contract or you should bring up. Then only item left is to prove that he broke agreement and get your money back.

good luck.

Terry

@Frank H

Yes, you can use rental income from the purchasing property. The exact amount will depend on your experience in being a landlord. For example, if you have rental property for several years, then proof will be on your federal tax returns schedule E. If you do not have experience, the underwriter might give you 75% of the lease agreement. Either way, you should be able to use rental income, and will need to show the rental agreements. 

This rental income from potential purchased is huge if you are buying a 4plex because it is time 4x. If buying in Las Vegas, then possible the rental income can offset 100% of PITI.

Terry