Las Vegas may have its problems with its high foreclosure rates, falling house prices, and lots of unsold homes, but when people think Vegas, they think good times and optimism. The city has a vibrant economy that continues to pull in new residents who want to settle here. Tourism may be off a bit with the current economic slump, but the attractions are compelling, the scenery is beautiful, and recreational opportunities plentiful.
Since this is such a desirable area, Las Vegas is great place to buy a foreclosure or bank-owned home whether you want a home for yourself or for an investment. The city has always drawn investors; at the moment, the large number of vacant and soon-to-be vacant homes offer unusual values to people who are here at the right time with money in hand.
What should you keep in mind when you are trying to find the right investment home?
Find a neighborhood where there's a demand for rentals or later resale. Even if the neighborhood or the house itself isn't what you'd pick for yourself, the location might be a great if you're planning on renting it or reselling it. Beware if there are too many foreclosures in the neighborhood, as eventually you might be competing for tenants. Make sure you know the neighborhood so you have an idea of the types of problems you might confront as a landlord.
Evaluate the total cost, including the needed repairs. If you find a place that's a real disaster, ask yourself if the cost of the rehabbed home will be in line with neighborhood market values. If not, keep looking.
Check out any liens on the property and any back taxes. You want to make sure you are buying the first mortgage, not a second or line of credit. You want to make sure you own the home and then will have to clear up the back taxes.
In parts of Las Vegas, there's a bidding war going on so don't overpay. Again, you don't want to end up with a property that's overpriced for market. If you are fighting for a house you want for yourself, you might bend this rule a bit and pay a little more, but if you are buying investment property, there are probably other places that would serve your purposes.
See what flies in terms of rental prices. The ideal is to rent the property for 1% of the purchase price, a 12% return, to allow for future repairs. Many areas do not support this type of rent.
Investing can be lucrative, but you'll need a good Realtor® to show you the best properties and help you through the process. We can help. For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:
N & Y Team
Nebi Adhanom Direct: (702) 277-9922
Yonas Woldu Direct: (702) 236-8997
Fax: 702-898-9738
www.VegasRealProperty.com
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