Real Estate for Long Term Hold is a great way to achieve a 12-18% return on cash and Las Vegas presents a great market to buy in! The savvy investor will profit from this downturn in the next up cycle, and can achieve great cash flow in the interim.
The time has come to start buying properties in Las Vegas for income. For the savvy investor there are current opportunities to purchase REOs, or bank owned properties in Las Vegas and achieve a 12-18% CAP rate, or return on cash invested. The best way to buy these properties is with cash. For those who think the bottom hasn't come yet, the best strategy to hit the bottom is to dollar cost average in. For investors looking to purchase a portfolio of rental properties, spread the purchases out over a period of time to hit the so called "bottom" of the cycle.
A recent Las Vegas Sun - In Business article by Brian Wargo (contact), In Business reporter titled:
"Single-family homes catch investors' eyes
Buyers focus on rental income more than appreciation potential"
stated:
"Real estate has always been a good investment, and right now it has never been better from a residential standpoint," said Steve Bottfeld, executive vice president of Marketing Solutions. "I just wouldn't invest in commercial (real estate) because it is about to go through what residential already has."
It makes sense because if someone can buy a home for $100,000 in cash and rent it for $1,000 a month, that equates to a 12 percent return before taxes and other expenses are included, Bottfeld said. Even getting an 8 percent return is better than the 2 percent they might get at their bank, he added.
Now is the time to start looking for the best deals, and be ready with cash to move quickly and scoop them up!
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