About attributes of the building itself that affect cash flow
In this video, we talk about the attributes of the best Las Vegas investment real estate. Factors like the age of the building, flooring in the living and wet area and kitchen cabinets and countertops effect rental rent as well as future maintenance which in turn affect cash flow.
Please find the video transcript with all embedded data below
Attributes of the best Las Vegas investment real estate
In this concluding video in the comprehensive guide to invest in Las Vegas real estate, we will talk about other factors that influence cash flow in Las Vegas investment real estate and how to maximize return on the money.
In the video about the perfect system to pick the best investment properties, we talked about how to find the best residential Las Vegas investment real estate using a system based on Rent-ability Factor concept. But we didn’t discuss the building itself which will do here.
Using our system we:
1: Found the best-priced listings in a large area
2: Figured out which listings provided the apparent highest income based on the rental rates
3: Used rent-ability factor concept to eliminate listings from sub-divisions that did not rent the majority of listings in less than a month to reduce vacancy
4: Arrived at an excellent estimate of return on the investment before emailing listings to real estate investors with all pertinent data
Compare that with how other investors get listings from their buyer’s agents.
If you haven’t watched it, please do so before continuing, you can find the link in the video page or playlist.
Let’s discuss the best price range, year built and upgrades for Las Vegas investment real estate
1: Price range:
If the investor has more than $225,000 then single family homes are a great choice. Townhouses are the best fit for $150,000-$225,000 and condos for the rest.
Lower priced homes and condos used to provide the best rental income to price ratio, however, this is no longer true. For example, a nicely upgraded pool home priced higher than $320K offers about 1%-1.5% higher cash flow than a $225,000 house. So the agent has to know what price ranges offer higher cash flow.
2: Year Built:
Even though cheap older homes or condos offer better rental income to price ratio, there will be repair costs involved. Depending on the age of the house there may be problems with cast iron sewer lines, lead paint issues, as well as problems caused by hard water and normal wear and tear.
Las Vegas is very hard on air conditioning units and pool equipment as well. Thus, we try to avoid home or condos that are older than 20 years old.
The most important upgrade for us is flooring in the living areas. The most damage resistant flooring is tile flooring. Next is laminate wood flooring while carpet is the least desirable due to maintenance issues.
The next important upgrade is obviously granite countertops and kitchen cabinets. Homes with granite kitchen counters and tile flooring rent for at least $100 or more, higher than the same with carpet in living areas and laminate countertops. Nowadays a glass backsplash is in fashion as well.
The third important factor in getting the highest rent is that the unit needs to be spotless and in move in condition.
How do we find the best Las Vegas investment real estate?
The listings that pass all the stages discussed in the last video and have the attributes that we talked about in this video are some of the best Las Vegas investment properties.
Needless to say, some homes or condos may be initially priced too high. We track borderline listings but the majority will go under contract before we are ready to make offers on them. If they fall out of escrow then it is time to catch them with lower offers. But given the high rate of attrition, only 1 in 50-100 Plus listings get emailed to our real estate investors with all the pertinent data.
It takes a great deal of time and effort on a daily basis to check out and keep up with all listings that are suitable to invest in. Thus, these are highly propriety and will only be e-mailed to investors that register with us and want to buy right now.
If you want to buy or invest in Las Vegas investment properties, please call us at 800-762-4917 or e-mail us. You can find our contact info and web page with the embedded video and all links in the description below the video.
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On behalf of the Saber Team, this is Karen Saberzadeh of Realty One Group and www.lasvegas4us.com wishing you a great day.