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5 Year Rental Trend

Several people have asked us in the past about rental trends in Las Vegas. While the property manager and we agree that rents are rising we did not have the data to back up our opinion. So, we did the research and below is a snapshot of the result. We…

What You Should Expect From A Good Property Manager

If you only expect a property manager to collect the rent, you have the wrong expectations. The property manager is the most important member of any investment team for a very good reason. A good property manager provides value throughout the investment life cycle. I listed below the phases of…

Purchasing Foreclosure Properties

Recently a client asked, "How is buying an REO property different from a traditional purchase?" This is an excellent question and one that we have had many times so we decided to use our response as this issue's topic. I will start with, "What is foreclosure?" What is foreclosure? Foreclosure…

Purchase Price vs. Rehab Cost

A frequent question we get is whether it is better to buy a property that needs more rehab at a lower price or spend more for a property that needs little rehab. A great question but one (as usual) without a simple answer. Note that this article is focused on…

Real Estate Math

There are a lot of people selling software packages for calculating returns, cash flow, comps and other needed values, making real estate investment analysis sound complicated and daunting. In this newsletter I will explain how to do some basic calculations. Before I get into the calculations, I want to talk…

Investment Location Considerations

In the last few blog entries we've been discussing some of the more common questions we hear. In this article I will talk about how I would select an investment location. Before you start considering a location it is important to define what you are looking for. I believe that…

Vacancy and Maintenance Provisions

Several clients recently asked, "How do you factor vacancy and maintenance costs in your return calculation?" A great question. We decided to broaden the scope a bit as you will read below. One part of the algorithm we use for eliminating properties that have a low probability of being profitable…

What to Buy in Las Vegas?

We've had many new investors subscribe to our newsletter in the last couple of months (thank you and welcome) and almost all ask the same basic questions. In this issue I will cover one of the most frequent questions. What are the best types of properties to buy (condo, single…

Rental Sweet Spot

In any location you are considering, you need to understand the income range of the probable tenant pool and how it defines the price range of viable investment properties. Let us explain. The maximum rent a tenant can typically pay is approximately 1/3 x their income. So, if your…

Insulating Your Investments from Economic Turmoils

A lot of investors are wondering what's going to happen to their investment properties given the current economic turbulence. Below is our perspective from going through the 2008 crash in the Las Vegas market, one of the hardest hit markets in the last downturn. Buy the Right Properties to Start…

Work Backwards to Make Money

Many new investors buy a property based on various popular "rules" and then discover that they cannot rent the property at a sufficient rate to break even let alone have a positive cash flow. In this article we will talk briefly about why such "rules" fail and the approach we…

2016 Outlook

National Economy We think that a quote from Business Wire summarizes the national economy fairly well. Economic Growth Stuck In Neutral – The U.S. economy seems unable to break out of its disappointing pace of growth that has kept real GDP growth range bound between 2.0% and 2.5%…