Is investing in Las Vegas real estate a good idea?

If investing in Las Vegas real estate is a good idea, is it too late?

In this video we will try to answer is investing in Las Vegas real estate a good idea given that recent price has cut cash flow. We think that home, condo and townhome prices will appreciate by about 10% or more in the next 12 months due to severe active listing inventory shortage. But given the circumstances, what happens after that is unclear. So the answer depends on whether you are a cash investor or need financing.

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Video Transcript


If investing in Las Vegas real estate is a good idea, is it too late?

Many real estate investors have quit investing in Las Vegas real estate because it no longer provides the high cash flow that they desire.

So is it too late to invest in Las Vegas real estate?

Well, let’s see how investors who invested in Las Vegas homes, condos or townhomes in January 2016 or for that matter January 2017 have fared.

Median price appreciation for Las Vegas homes, townhomes, and condos

Median PriceSingle Family HomesTownhomesCondos
June, 2017$250,000$185,000$113,000
January, 2017$235,000$163,000$95,000
January, 2016$217,000$150,000$87,500
Median price appreciation
since January 2017
6.4%13.5%19%
Median price appreciation
since January 2016
15.2%23.3%30%

As you can see the median price of Las Vegas homes in May 2017 has appreciated by 15.2% from January 2016 and 6.4% from the same time in 2017. Add about 5% in rental income per year for more than 18% return on the investment.

We are talking about the median prices here, however, real pricing for the investment homes that we find for our clients are up by much more since lower-priced homes appreciate more than the median prices.

The median price of townhomes has appreciated by an incredible 23.3% since January 2016 and 12.8% in the first 5 months of 2017. The median price of condos is up by an unbelievable 30% since January 2016 and 19% this year alone.

For updated information visit our Las Vegas real estate market updates page.

The reason for the eye-popping price appreciation

The great price gains above are due to two reasons:

1: Very tight inventory of active listings in the MLS.

Some of these unbelievable price appreciation can be attributed to a very tight active listing inventory in the MLS which results in a competitive market that makes finding suitable investment properties difficult.

2: Economic recovery because the lending environment is still tight and speculative investor activity is not significant

So is it too late to invest in Las Vegas homes or condos?

That depends on if it is a cash investment or one that requires financing.

Price gains will not go on forever and speculative investing just for future appreciation without any regard to cash flow can lead to ruins, just like a few years ago.

At this point, rental income for good invest homes is at about 5% and 6% for condos and townhouses. So if an investor can’t get a very low-interest loan or lacks the needed reserves, investing in Las Vegas residential real estate becomes speculative which even with upcoming future appreciations we do not recommend.

But not so for cash buyers due to the combination of rental income and additional price gains at least in the next year or two leading to double-digit profits.

But it is imperative that cash buyers choose the very best listings that provide for the highest price to income ratio while avoiding the vacancy.

After researching for a long time, we have come up with the perfect system to pick the best investment real estate that comes up with the best investment properties every time. It requires a great deal of work which many real estate professionals could find prohibitive.

Our system is based upon the concept of the rent-ability factor which we have coined and will explain in the next video. After learning this system you will never look at investing in the residential real estate the same way.

So, is investing in Las Vegas real estate a good idea? Heck Yes! For cash investors

Is it too late to invest in Las Vegas real estate? Heck No! At least for a year or two

If you want to buy or invest in Greater Las Vegas homes, condos or townhomes, please call us at 800-762-4917. You can find our contact info and website and blog links in the video description.

Please like, share and subscribe to our Las Vegas real estate channel for upcoming videos.

On behalf of Saber Team, this is Karen Saberzadeh of Realty One Group and www.lasvegas4us.com wishing you a great day.

Is investing in Las Vegas real estate a good idea? was last modified: September 25th, 2017 by masouds