Investing in Las Vegas Real Estate
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6 Signs Of A Great Investment Property Las Vegas
Las Vegas Real Estate Investing
If you have been thinking of investing in real estate in Las Vegas, now is the best time to make a purchase. In this article, we will provide you with some tips that you can use to help you decide whether a particular property will be a good addition to your investment portfolio or not.
Investing in Las Vegas real estate is one of the best ways to enhance your wealth portfolio. As more and more people realize the benefits of getting involved in buying a property in this lucrative area, it is important to take some time to analyze the market before making a purchase as not every opportunity that comes your way will necessarily turn into a great investment. Keep reading to find out which signs to look for in a great investment opportunity in Las Vegas.
- Are There Existing Tenants in Place?
If a house for sale already has tenants, it could be a good sign that you have hit the jackpot. While trying to sell a house with tenants in place may seem difficult for sellers, as an investor it is an ideal opportunity. Purchasing a property with tenants is a dream come true for investors as it comes with instant cash flow that eliminates the time needed to find and screen tenants. Of course, it is important to make sure that the tenants are responsible people who have been taking good care of the property so far and have been paying their rent on time for a significant period of time.
- Is The Area walkable?
If the property is in a walkable neighborhood it will be a plus as many renters love being able to do things like shopping and exercising close to their homes. As walk-ability could be a major factor for renters looking to rent in Las Vegas, look out for nice restaurants, shops, gyms, schools, and community involvement projects in close proximity to the property. Pay careful attention to what is around you in the neighborhood and try to imagine what you would enjoy if you were looking to live in the area.
- Is it in an Up-and-Coming Neighborhood?
An up-and-coming neighborhood will be a huge attraction for renters, especially younger families. Take a tour of the area to find out what is going on. Are there new stores and restaurants popping up everywhere? Are there signs of movement in the area like new people moving in or changes being made to improve the overall aesthetics of the area? An up-and-coming neighborhood will provide you with some great opportunities for good property deals. As the area becomes more developed, the demand for rented accommodation will grow and more high-paying, quality tenants will be attracted to the area who will be willing to pay you the rent you want. Keep an eye out for higher-end retail and food chains like Starbucks, Whole Foods, and Panera Bread. These companies spend millions of dollars on research and carefully scout the best neighborhoods to ensure they meet their profit margins. You can utilize the results of their research to help you choose the best areas in Las Vegas to invest in.
- Do The Numbers Add Up?
Before investing in a Las Vegas property it is important to do some research regarding information specifically related to the property and the area such as property costs, vacancy rates, recent repairs undertaken on the property, expected annual maintenance costs, and tax information. Your research will tell you how much properties in the area are going for, how long they generally stand vacant before a qualified renter moves in, and what the average maintenance costs are.
- Is it a Good Return on Investment?
There are a number of equations you can rely on when determining whether a property in Las Vegas will be a good investment for you. For example, your capitalization rate must be determined in order to find out whether you will get a good return on your investment. The 1% rule applies here that states an investment property should make at least 1% of the purchase price per month. You should also run a CMA report to find out what has recently sold in the area and how much rental properties are going for.
- Is the Economy Strong Enough?
If there are no lucrative employment opportunities in the area you are looking to invest in, your tenants will not be able to pay the rent you want for your property. Investigate the local job market to ascertain whether there are adequate job opportunities available in the area. Tenants will only be able to pay rent for your property if they are able to find work in the area. If not, you will soon find yourself looking for new tenants and every investor knows that tenant turnover can cause big financial losses. Avoid these problems by ensuring that the property you invest in is located in an area where there are lots of job opportunities available.
Real Estate Investment in Las Vegas, Nevada
THE BEST WAY TO INVEST IN REAL ESTATE IN LAS VEGAS
With years of experience as a licensed REALTOR® and successful real estate investor, Anita Bovee understands the Las Vegas real estate market like no one else. Anita takes an educational approach to buying and selling homes and investment properties—providing you with insights and personal experience to minimize risk and make smart decisions.
Anita Bovee – Your Las Vegas Realtor