Loft 5 which is a luxury Las Vegas mid-rise condo community has decided to rent 200 of its unsold units and wait for a better time to sell their luxury loft condominiums. I have written about Loft 5 and other South Las Vegas mid-rise luxury condo communities having trouble selling their condo units in May-2008.
The rent for these condos starts at $1800 and Loft 5 throws in one month free rent. This is significant as this will populate their project which makes it easier to sell the other condo units.
Other luxury mid rise condominiums are available across Las Vegas Boulevard (Strip) with the low prices starting in the $110-120 per square foot. Remember when the builder built Manhattan he built a building that he could sell for $230 plus per square foot, not low $100s as they are now.
This is the reason that Manhattan West on 215 Beltway has stopped building; the builder can’t sell them at cost at this time.
If the tremendous rise in the number of people that have contacted us in the last week for buying a home or condo in Las Vegas compared to the last three month is a sign, Las Vegas residential real estate will be on fire this year. We average 3-5 prospective buyers and investors who are contacting us per day and given that each deserves our full attention, Karen and I are working at least 10 hours per day. I am writing this at 9:30 pm and am tired.
I am getting a lot of requests from investors to identify the Las Vegas residential properties with the highest cash flow for them, I am working on this. The deal is that the net profit, which is rent minus HOA fees, tax and insurance, and vacancy is fixed for most homes or condos in Las Vegas. For example an investor that buys a condominium in the Summerlin area will get about $1100 for a 1200 square foot, two bedroom, two bathroom condo. The HOA fees for these Summerlin condominiums are $100-$290, however most are about $150. The taxes average about $120 per month. One must account for about 2-3 months’ rent or $2200-$3300 for other expenses including vacancy, insurance or repair. So if you deduct the total rent minus the expenses, the net profit could be in the $550-$650 range. Now how much is the investor willing to invest to gain this positive cash flow? The first year cash on cash return for the price of $100,000 is 6.6%-7.8%. Now where is an investor going to get a return like this? I guarantee you it is not long term US bonds or bank’s saving accounts. Any future appreciations will be a bonus. I have used very conservative numbers here, as I like to account for worst case conditions.
Some of these Summerlin area condos have amenities galore like tennis courts, clubhouse a couple of pools and spa.
Related web-site links: buying Las Vegas condos for sale, Buying Las Vegas new homes for sale, buying Las Vegas homes for sale, Las Vegas houses, condominiums and commercial real estate for sale
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