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thank you so much Rehab702,

i was thinking about many of the points you made, it just makes sense. vegas is such a unique market. there is really no other city to compare vegas to in terms of characteristics.

in my humble opinion, many so called experts do not take the tip/gratuity income into account. i work in the service industry myself and know plenty of tip earners that earn well over a six figure income by working valet, bartending, or wating tables.. but these numbers don't show up on the tax returns. the tip earner job seems to be the antithesis of a white collar job, where as every part of income is tracked and reported. these tip earner jobs play a part in the economic foundation of vegas.

maybe it is a mistake to group vegas into the 'Southwest' cities like Phoenix, scottsdale, and some southern california area's?

vegas

ok, i live here in vegas. i have two homes, one as a primary residence and one as a rental. i am breaking even on the rental, which is fine because i am 35 and i plan on using it as retirement tool. i am looking to purchase another home this fall and i cant make any sense of the vegas real estate markert, nor the numbers.

i hope this link can come up.

http://www.lvrj.com/business/9731292.html

my questions are...

-why has the median home price gone up when everyone says the market is tanking.
-why is there over 24,000 homes & a 15 month supply of homes on the market here in vegas, yet prices keep modestly climbing?
-does this defy the supply/demand theory?

any feedback would be greatly appreciated.

vegas.

my negative cash flow is $1302 when it my property is vacant. my first mortgage payment doesnt come due until april 1st, 2007.

i am asking $1325 a month to positive cash flow for +$25.

the rental comps in this neighborhood are $1100-$1200 per month. i guess i am asking too much?

i would love to hear more advice from you. i appreciate it alot.

vegas

so my 1st rental closed on the 15th of february. i had put an ad in the newspaper february 1st. the ad stated it was available Feb 15th. i have advertised on Craigslist.org, and have a big For Rent sign in the yard. i even have a website i made and put link in the paper for the house.
http://www.6320peachorchardroad.com/

i have shown the house to married couple and a young girl and her sister. i have gotten a half dozen calls, a few of them telling me they are Section 8's.

i am asking $1325 per month.

i am not getting that much response. what am i doing wrong?

do i sign a suspect renter because i need renters or wait? do i lower the price? i am frustrated.

any suggestions?

vegas

here is how i deal with inquires on my credit files.

http://www.idtheftcenter.org/Factsheet124.pdf

before i got the credit freezes my scores were a solid 750's. since i put these freezes on, my scores are now low 800's. my broker swears the reason is because no one can access my credit.

vegas.

thanks for replying, i really appreciate it.

here are the results from today's search. these are the lenders i contacted today. by the way, my mind is fried, i don't know how these brokers and lenders do this 5+ days a week.

--Washington Mutual(i have business history with them)
--B. of A.(business history)
--Hartland Mortgage
--Countrywide, two seperate reps(business history)
--Pentagon Federal Credit Union(business history)
--Zions National Bank(business history)

after looking at all these GFE's, it was 'six of one, half dozen of the other'. i mean if one lender's rate was better than the other, the one with the better rate had junk fees the lender was not willing to discard. i ended up choosing my original broker that did the refi on my primary residence. here is why and also some of the terms.

My broker has all my info from the refi and he is in town here in vegas. he can expodite this process. the terms are 6 3/8 rate(buying it down), owner non-occupied investment, stated income, 30 year fixed, interest only for first 10 years, 20% down.

the big bummer of it all is the 2% cap on the seller paying closing costs. after shopping around, i come to find out this 2% cap is across the board. infact what i am told is FNMA implemented this cap on non owner occupied conventionals jan 1 2007. the reason, i am told, is because of all the scam's going on.

i am going to have to come out of pocket about $1500. My primary goal is to hold on to this property for the duration of my life. this is my pension. if situations present themselves to sell at a huge profit, that is a different story. but my mind set is to slowly pay this thing over time and have it become an income property for retirement.

the numbers crunched today will give me a paymet of about $1300 a month.

$1126 interest only payment
$50 home insurance
$115 taxes (gotta love Clark Co., Nevada)

equals roughly $1300.

comps for rent in the neighborhood range from $1200-1400 per month. i want to charge $1300.

i do have a question for future reference, how can i get creative and dodge this 2% cap and get the seller to pay more closing costs?

thanks for the input guys, it helped me out a ton.

vegas

thanks for the reply. it helps me see what was going on between these competing loan officers.

vegas

ok, i want to make this short but it might run on.

i re-fied my primary residence and took about $100K out.
i just offered to buy my first rental and the seller accepted my offer.

the offer the seller accepted goes like this.

purchase price--$265K
20% down--$53K
seller pays $7,950 in closing costs.

i want to go with a no doc, conventional investment loan.
814/804/787 are my tri-merge credit scores.

one loan officer is telling me he can get me 6.5% interest only conventional investor financing with 20% down-no doc's, but i have to come with $2,000 out of pocket. and the loan program he is offering will not let the seller pay more than 2% of closing costs.

another loan officer is telling me i am getting screwed by the other guy.

does any of this make sense.

i am going to shop the loan on monday.

i would love to hear from anyone on this.

vegas

i was thinking exactly what you were thinking. never take chance on used refridgeration equiptment.

thanks alot for the reply

vegas

i am in the process of buying my first rental. i am getting the washer and dryer in the transaction, but no fridge.

my main question is, should i buy a new or used fridge for the tenants? i have been told not to let the tenants use their own appliances because many times the tenants will damage the floor or walls when moving the appliances.

the house was listed at $270K, i offered $265K, seller pays $8K closing costs, i get the washer/dryer, i get a one year warranty.

the seller agreed to the above offer. comps run $263K-$270K.

i hope it works out.

vegas