Housing Crisis?

Why does it have to crash? Why can't it slowly leak 1%, or grow at less than the rate of inflation of 2%?

The stock market and real estate market crashed at the same time last time, but that's in recent memory for everyone. A slow bleed like Japan real estate and their stock market after the 90's continuing on for decades is far more terrifying.

 

Does anyone own rental property in Vegas? I was looking into possibly buying a house and renting it out. Was curious.. It seems like theres alot of houses available for rent or purchase.. If anyone can share their experience would be greatly appreciated.

 

@tominiowa did this I'm hoping he will see your post.

TomTWI

 

Since I started this thread 01/16/2018 inventory of Condos and Town homes has increased considerably.

Six Zip codes in Southwest LV Condo or Town Home. I don't track single family.
2017 2018
Jan 16 123 98
May 07 109 143

It appears to me that many investors who bought in the 2010 to 2012 time frame have decided to cash out now that prices have more than doubled.

TomTWI

 

The average price for house in Reno now is $400,000

 

I'm seeing some real nice houses around the Summerlin / Spring Valley area in the $350,000 range. But before I even consider buying I just wanted to know how tough it would be to find tenants. Not sure how AirBNB would work out either I heard I would need a permit from the country. I also heard short term rentals are illegal now? Just too many unknowns.

 

Here is one management company you might give them a call. I don’t know anything about them. Just got it in mail.

 

Areas around Lake Tahoe are also considering banning short-term rentals now... just too much conflict going on with families on either side and a short-term rental, full of skiers/shredders who wanna enjoy the hot-tub a 2 a.m. and party it up during their stay. I can easily see both sides. As you might imagine, a number of these short-term properties are owned by folks who inherited the properties and are using them as investments for their own retirement. They're none too happy with the proposed ban.

 

My parents had a condo next to La Quinta Resort. Great development. Except during Stagecoach or Coachella, and for the same reason smart describes.

 

We are signing a listing agreement tomorrow and expect to have our house on the market in early June. Very big step, we've been here 23 years, but at least we are selling while the market is hot. It's time for the next stage of life, but we are squeezing in a Vegas trip before all that happens, LOL.

 

Good luck, Suekel!! Changing stages bring new scenery, characters, action. Enjoy.

We might be nearing a crossroads here, and are trying to sort out where the various pathways might lead.

 

@Laostuh I have owned 4 rentals in Vegas and down to one now. I will answer more when I get corn planted and have more time. But to start to me if you buy a house for $200,000 you need close to $2000/month to make money $250,000 needs close to $2500. I do not see this possibility anymore. Yes you could take less rent but to me it just isn't worth it below these numbers. Rental $$$ have not appreciated near like the purchase price has. Plus I see little upside left in this market. But I am not a professional real estate guy just a dumb farmer lol

 

Thanks for the insight. My idea was to buy a house and hopefully rent it out for a little bit over the morgage cost so esentially it'd pay for itself with a little left over for me to put away.

How hard was it to find tenants? Also what do rents look like for a home with 3+ bedrooms?

 

It really depends on location and how nice a place it is. Go to Trulia.com or another site and put in Las Vegas and rental. A map will come up with all the rentals and prices. This should give you an idea of what rents are in different areas of city.

TomTWI

@tominiowa I hope you get all the corn in with no breakdowns.

 

Finished corn and bean planting today. So, to answer some I would be cautious now with the market so high and you live out of town. A nice neighborhood home with 3 beds , around 1900 sq ft seems to be running close to $300,000. I think it would be hard to fill above $1700, and less if no pool. You get about $100-$200 extra with pools which are a loser except they are easier to rent. Pools are high maintenance. At these levels it is tough to risk a depreciation in prices if things turn sour. As landlord you will be spending money on simple things unless you are close by and fix yourself. Remember as a general rule (not all) renters are renters for a reason. Usually cannot fix things or do not want to.. Make sure to put in lease any repair under $200 are their problem. Otherwise you will be hiring plumbers to change the toilet flapper. Like I said I had no problem renting out my pool homes. But when I did it I was buying the houses for $150,000 and renting out between $1400- $1600. I got lucky and overall good tenants. I have one left and keep it for non financial reasons plus I bought it 7 plus years ago and still have original tenant. Financial wise, I should sell and get a better return elsewhere with the investment. Remember also if you file MFJ and your AGI is above $250,000 you cannot deduct rental loss until you sell. Losses occur because of depreciation. Rentals take 27.5 life span.

Lots to consider, happy to answer any questions I didn't answer.

PS I managed all 4 rentals personally from Iowa. I wasn't paying 6-10% those agencies who spend landlord's money and see the houses less than I did.

 

I'm worried this is another bubble. Silicon Valley in a regular decent neighborhood with a home just over 2500 square feet just sold for 3.1 million. Sad, but that isn't in an expensive neighborhood. It's a long way from San Francisco. Our house just last month went up 28% because two houses were overbid by a ton. smh We've been through this before and we lost 50% of our house value just a couple of years after we purchased it. We were one of the lucky ones that kept our jobs and could still afford to make those $4000+ a month payments 12 years ago. I was hoping lessons were learned, but apparently not well enough.

 

I was shocked at how cheap some mobile homes are out there. Some actually looked nice. Then I saw they were older mobile homes and if like here after a certain age you cant move them. So they are stuck in their trailer parks. A couple of thousand would buy one but lot rent at 800 a month lol.. Guess there's several people that just want out form under them.

 

We're brilliant when we time the CA real estate market properly, and we're idiots when we don't. lol It's all just luck with primary residences.

 

I was looking to buy a condo in Palm Springs and rent it out until I retire. After going over all the costs, I found it just is not worth the risk, at least to me. By the time I add up the taxes, HOD's, Lease, Insurance, Rental Company, I would be barely breaking even. All it takes is one big assessment, and then you are losing money.

Decided instead to invest elsewhere, and when it comes time to retire, I will not be forced into one specific location. I can change it up every year if I want, or keep renting in the same place. I have the luxury of knowing I will always come home to Seattle in the summer though.

 

And one of the BIG things in the Coachella Valley is your electricity provider. Beware SCE in the (generally) west valley.