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Five Housing Investment Questions You Need to Answer

By
Real Estate Agent with Simply Vegas

 

Investing in real estate in the Las Vegas area can be a profitable endeavor for a savvy investor who knows what they're doing. Some investors in rental properties report annual returns which are often better than returns from other types of investments.

Investing in real estate does come with its own unique set of expenses and challenges, however. Here are five questions you will want to answer in order to make the greatest gains on your real estate holdings.

Good Deal or Cheap for a Reason? Even though you may be able to buy a certain property for a rock-bottom price, you may not be able to rent it out once you own it. If you wouldn't want to live in the neighborhood, renters may not either, so be sure you check out the neighborhood and determine what rents are on other nearby properties before buying.

Is This a Good Financial Investment? Once you know what you can charge for rent on a Las Vegas property, you're on your way to determining if this investment is viable. Don't forget to factor in the costs of buying and closing, repairing, and maintaining your investment. Before buying, be sure you get an inspection to find any hidden repairs that could cost you a bundle before you can even think of renting the property.

Am I Going to be Able to Keep This Property Rented All the Time? That old saying “time is money” really is true when renting out real estate. If your Las Vegas rental is sitting empty, you're not only not making money, it's costing you money out of your pocket to maintain the property. Among other things, property taxes will still come due, the house will need to be kept cool in the summer or warm in the winter to prevent mold and other undesirables, and the lawn will still need to be cared for.

What About Routine Maintenance? Even if you have great tenants living in your Vegas area rental property, you'll still need to provide routine maintenance to keep the property in good shape. At a minimum, the plumbing, heating, and electrical equipment always need to be working properly.

What About Unexpected Repairs and Upkeep? Besides repairs that may be needed, you will probably need to repaint after each tenant, so be prepared by setting aside money to cover these inevitable expenses. And don't forget, being a landlord comes with its own set of state and local laws that you will be expected to live by.

Investing in Vegas property can be profitable as long as you keep in mind the potential risks and costs associated with being a landlord.

If you're looking to buy investment property in the Las Vegas area, including Las Vegas, Henderson, North Las Vegas, and Green Valley, give Yonas Woldu and the Simply Vegas Team a call today at (702) 637-1734 or contact Yonas online. We are here to give you good, solid advice on area real estate investment! Check out our website for properties that may be of interest to you.

 



 

Bahman Davani, CM at Texas Five Star Realty, Plano, TX (214) 457-7055
Texas Five Star Realty, Plano Texas - Frisco, TX
Homes for Sale in Plano, Frisco, Prosper, Allen TX

Unfortunately, to many investors or buyers in general, "Good Deal" means cheap or low price which is not true at all. They should look at many other factors and do analysises, some of them you shown here.

Sep 02, 2013 02:50 PM
Yonas Woldu
Simply Vegas - Las Vegas, NV
Yonas Woldu

Cheap in price may not end up cheap if there are a lot of problems that need fixed to make the home liveable as well. Thanks for your comment.

Sep 08, 2013 11:13 AM