Las Vegas

[Estrogen Hostage]

Is there anybody that has any strong feelings for Las Vegas as a place to buy rentals? Housing is depressed there and vacancies are high, but employment seems fairly stable and rents are high as well. How are vacancies high and rents high too?

I've always liked Las Vegas, and wanted to invest there but never thought the time and situations are right to do this. So far I think it's been a good decision on my part. What can you tell me about Vegas?

[Gold River]

Hi,

    I beg your pardon? Las Vegas has a 15% unemployment rate! Nevada has the highest foreclosure rate in the country 4 years in a row! Nevada has a 11.1 vacancy rate! Home prices are still very soft and in some places still sliding lower or skipping bottom! Home values not expected to appreciate for 3 to 5 more years!

Perfect place to invest if you have deep pockets and don't mind long periods of vacancies!

My understanding is conventional investment loans are highly scrutinized and hard to qualify for, but obviously there is some private money financing and all cash is good, but look at your numbers to determine if something like this works as cost's and expenses could make out of state ownership less appealing!


                  GR

[Estrogen Hostage]

I know those facts too. I am shocked what the rests that people seem to get there though. Why are rents so high if vacancies are high too? The rents are higher for a cheaper house than I have here in Kansas.

Is the vacancy rate homes that are in foreclosure and rentals vacancies low??


I am well aware that it would be risky. I just want information.

[andydallas]

If you look at the numbers for the major casino operators, something like 2/3 of the revenue is coming from China, the gambling business in Vegas has been hurt bad, and that means everyone has scaled back,,,

Homes were being built at a rapid pace when Vegas was growing,,,,its not growing now, and there are more homes than there are people needing them (or able to pay for them anyway),,,high supply, low demand,,,not a market I want to touch

[davewindsor]

Personally, I'd stay out of the Vegas rental market.

I go to condos.com for Las Vegas and I can find over 200 listings for condos in the multi-million range.  I type in under $10K and find over 60 listings.  A huge difference in the per square foot cost price. 

First, it tells me location is everything for Vegas.  I don't see an improvement in employment either.  It's main economy is gaming and conventions and every major city is now opening their doors to casinos and expanding their convention centers and people are just going to stay in their own state to gamble or attend an event. 

A few years ago, a lot of people from neighbouring states like Ohio went to gamble in Detroit.  Now, Ohio and other states are handing out casino licenses.  Greektown Casino in Detroit went bankrupt last year.  It's still in business under a new owner, but people travelling long distances to gamble is not happening anymore and it's going to hit Las Vegas harder also. 

Casinos are also becoming more efficient and are reducing their employment rolls.  Slot machines in Detroit no longer give coin jackpots, but tickets to take to the teller or a self-serve atm to be cashed.  They've added self-serve pop refill machines and computerized blackjack, poker and roulette tables.  Where's the need for human labour?  If you want a human dealer, you have to go to the high roller section.  If there's no need for human labour, there's less employed and less renters.  How is Vegas supposed to lower it's 11% unemployment rate?  Unless you want prostitutes as tenants, the rental pool for tenants is going to get even smaller.

Second, it tells me realtors are lying about their rental data suggesting lucrative rents and low vacancy rates that probably don't apply to that neighbourhood.  Make an offer conditional upon seeing their tax returns for the past three years to verify the rental data and I bet the agent will make up some lame excuse not to show it to you.  The alleged profit margin is one big lie.

[DaveVelasco]

I do. It's quite close to where I wan to go everyday so Las Vegas is among my best choices, not only for rentals but for property possibly.

[allisonables]

I don't know about buying rentals in las vegas right now, but I would surely be a renter 

[rookieNYC]

I don't know about buying rentals in las vegas right now, but I would surely be a renter 

Allison,
 How can you justify your statement?...Real Estate in Vegas is down something like %70 in some areas...Nevada,Florida you have to be a buyer not a renter...If you were talking about NY I would agree with you...But Vegas,no blankin way...Its a longterm buy at %70 down...Whats the worst that can happen,go down %80?????.....

*Let me be clear,Im not saying buy Vegas RE...I dont see the attraction that will bring the area back*...I actually agree with Dave Windsor...

[kdhastedt]

*Let me be clear,Im not saying buy Vegas RE...I dont see the attraction that will bring the area back*...I actually agree with Dave Windsor...

Well, they've got Harry Reid...

[Gold River]

Hi,

    Las Vegas can be a great place to invest if you live there or have people there, for an out of state investment in this volitile market your asking for trouble, the current vacancy rate at 11.1% means your property will be vacant an average 40 days per year!

I invest in the Las Vegas market but in residential real estate we have been fix and flipping or wholesaling and not portfolio investing!


               GR

[LVVR]

I live in Las Vegas, and I quite like it. You just want to make sure to live on the North side, or some place a ways from the strip.