| Real estate prices have fallen over 70% in Las | | | | for as much as $1300 a month. Condos that |
| Vegas, and aggressive investors are now flooding | | | | were $225,000 in 2007 can be had for $59,000 |
| back into the market to snatch up bargain | | | | and are renting for $900 per month. Homes and |
| properties. Real estate experts are touting the | | | | condos are experiencing tremendous cash flow |
| strong cash flow potential that Las Vegas | | | | that is well above the 1% rule. (Rents should equal |
| properties now offer. Still, I have found that of | | | | at least 1% of the purchase price in order to cash |
| the dozens of potential Las Vegas real estate | | | | flow positively.) |
| investors I speak to every week, most of them | | | | In the last year, I have sold to many investors, |
| share the same concern: Will I be able to find | | | | but one in particular has done something that I |
| tenants for my investment properties? This is a | | | | believe I will see a lot more of this year. He has |
| great question. Exactly how strong is the rental | | | | cashed out around a million dollars from the stock |
| market in Las Vegas? How long will it take to get | | | | market, purchased 10 single family homes (all |
| your investment home or condo rented? What is | | | | around $100,000), and is cash flowing hugely at |
| the vacancy rate in Las Vegas? | | | | this time. Average rents on his properties are at |
| Rental vacancy rates are published yearly and I | | | | $1150 per month and all of his homes are now |
| am still waiting to see the data for 2009. But | | | | rented out. If you consider the numbers on his |
| vacancy rates don't tell the whole story. Because | | | | particular investment: Rental income minus taxes, |
| rental vacancy statistics are heavily weighted | | | | home owners association dues, insurance, minor |
| towards apartment buildings, a high rental vacancy | | | | maintenance, and property management... he is |
| rate for a particular city does not mean that | | | | netting about $800 per month, per house. Multiply |
| rental homes and condos are necessarily | | | | this by his 10 properties, and he is netting close to |
| experiencing high vacancy rates. With foreclosure | | | | $8000 per month in returns. This comes to just |
| rates in Las Vegas leading the nation for the last | | | | under a 10% yearly return on investment. I don't |
| two years, many families who are used to living in | | | | know anyone right now who is making 10% per |
| houses are losing their homes. These families look | | | | year on their stock portfolio. And these figures |
| to rental house and condos to find a new home | | | | don't even take into account the appreciation that |
| that fits their lifestyle. So even when overall | | | | he will receive year over year on his properties |
| vacancy rates in Las Vegas have been high, we | | | | as the market continues to recover. Nor does it |
| have continued to see strong demand for rental | | | | take into account the tremendous tax benefits |
| houses and condos. My personal experience has | | | | that come from investing in real estate. Once |
| followed this trend as well. On the 80 plus homes | | | | appreciation takes effect over the course of the |
| and condos I helped investors purchase last year | | | | next several years, and rents continue to rise, |
| alone, we are currently running close to a 95% | | | | this guy will look like a genius. |
| occupancy rate. | | | | This gentleman took a calculated risk and faced |
| It is true that average rents have fallen in Las | | | | his fears about the rental market and is feeling |
| Vegas over the last two years. But rents have | | | | pretty good about it at this time. (Amir, you are |
| fallen only around 20% while home and condo | | | | my hero.) Now that he has hit his goal of 10 |
| prices have plummeted over 70% from highs of | | | | homes, he is planning on buying 10 more over the |
| three years ago. This disparity has created a | | | | course of the next year. |
| great cash flow opportunity for investors now | | | | If you would like more information on the Las |
| entering the deflated market. Homes that were | | | | Vegas rental real estate market or investing in |
| $300,000 are now selling for $100,000 and renting | | | | Las Vegas properties, please contact me. |