Residential Investment Properties

Cash Flow a Property

The increase in value of Las Vegas real estate has provided challenges for smaller investors looking to cash flow a property. With the average house price being around $300,000, it is challenging to at least cover the monthly expenses, let alone a few bucks? Here are a somehelpful Welcome Home Nevada tips:

Price  

When considering buying investment property, it's important to know what margins you are working on. What do you estimate the monthly expenses to be, i.e. mortgage, taxes, insurance, HOA, maintenance? What is the estimated monthly income? Are you left with a profit or loss you can live with? Personally, I don’t mind losing minimal amounts of money on a monthly basis if the property is a good deal. I look at it as a calculated loss that allows me to have something even greater in the end, a good equity position. I wouldn’t suggest this to anyone. It’s just worth considering as a part of the greater picture.

Collateral  

The key to all Las Vegas real estate purchases is location. Does the area have a good history of appreciation, crime, schools, etc? Is this area saturated with available rental units? What is the average rent rate in this area?

Money  

If items 1 and 2 are in place, how much money are you willing to put down? Typically the down payment is the key element that will make the numbers work. Most investors want to put down as little as possible. Assess how much cash is needed to make the deal agreeable to you.

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