Investors who are considering Las Vegas as the next market to enter are choosing the right time to buy. Homes are still pretty affordable, especially when you compare prices to other major cities, and there are several ways to finance your investment. Whether you’re planning to buy your first rental property or you’re adding to a growing portfolio, we have some good reasons to choose Las Vegas.
Local Economics are Favorable
There’s a lot happening in Las Vegas these days. Major companies are setting up headquarters and operations here, including Zappos, eBay, and Tesla Motors. The door has also opened for professional sports, and the city will see an NFL team (the Las Vegas Raiders) and an NHL team (Vegas Golden Knights). The WNBA also has the Las Vegas Aces here, and soccer fans have the Las Vegas Lights. The economy has moved beyond its entertainment and gambling foundation, and the new job opportunities and industry is going to bode well for investors this year and in future years.
Diversity of Rental Properties
Investors have a lot of options when it comes to the types of housing they want to invest in. Commercial spaces are available, and new development all over the area is feeding the supply. There’s more to Las Vegas than the Strip. Look for single-family homes and condos in communities like Rancho Charleston, Buffalo, Huntridge, The Lakes, and Winchester. In these neighborhoods, you’ll find rising rental rates and attractive cash on cash and cap rates. Las Vegas was hit hard by the housing market crash, but it has rebounded nicely and offers stable properties that tenants find appealing.
With so many tourists visiting Vegas, you also have the option of renting your property out short-term. This takes a little more work and a lot more planning, but if you have a home that you want to use from time to time, you can rent it out in the short term to people visiting for a few days, a week, or even a month. Not all markets can accommodate both short term and long term rentals.
Stable Las Vegas Tenant Pool
Another good reason to invest in Las Vegas is that there’s a stable and growing tenant pool. The population growth in this city has exploded over the last few years, and there’s no reason to believe it will slow down. The low cost of living, positive job market, and all the city’s diversions are attracting people to the area, and more people means more occupancy. You won’t have to worry about high vacancy rates or depressed cash flow.
Las Vegas provides investors at every level the potential to earn positive cash flow and a high return on investment. Make sure you work with a professional Las Vegas property management company before you buy. We know the local market and we help investors like you identify the right opportunities all the time.
When you’re ready to start seriously thinking about Las Vegas investment properties, contact us at Tradewind Investments. We’d be happy to share some tools and resources that will help you be a smarter investor.