Investors are descending on Las Vegas in a home buying frenzy. Prices have dropped so low that investors are now finding $500 – 1000 monthly positive cash flow on homes all throughout valley.
The deals are found on high-rise units, condos and single family homes. One investor is gobbling up condotel units at the Palms Place. It’s a hi-rise adjacent to the Palms Place Casino. He says he’s seeing a return of $800 – 1,000 a month. Another buyer paid $125,000 recently at the MGM Signature condotel. He says he’s getting $400 – 500 per month positive cash flow.
On the home front, buyers can pick up a condo for as little as $15,000 and a detached single family home for as low as $20,000. Investors are easily realizing a 10 – 15%+ return on their money. For example, a $40,000 condo would rent for $650 – 750 a month. And a $75,000 home in some areas would rent for $1200 – 1300 a month.
The other major player in the Las Vegas real estate market at the moment is the first time homebuyer. The majority of those buyers were priced out of the market as home prices skyrocketed during the peak during the mid and late 2000s. Now, prices have fallen a staggering 65% and once again, first time buyers can afford a home. Most of those buyers are taking advantage of the HomePath loan where they only have to put 3% down on the home or the FHA loan which is 3 ½% down.
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