Las Vegas condo as an investment

I want to rent it out full time as an income property.

Please stop for a moment and grab a pen and paper to jot down some notes as you consider the following questions. This process will help you determine your wants and needs for your new condo. You will end up with a list of your criteria to work from.

Ok, you are an investor.  The main point in real estate investment is the return on investment.  And if you approve I can give you examples of R.O.I.’s that meet your portfolio criteria.  What is your cap rate and how long will you be holding the property in your portfolio? 
Wait, if all the above sounds a little foreign then you and I need to have a little talk and I can help you better understand the fundamentals of real estate investment.

As an investor you purchase for two reasons:
The depreciation of the improvements for tax purposes with compensation to help cover the overhead.
The real estate appreciation which can be 1031 tax exchanged for another piece investment real estate, thereby deferring the tax.
The bottom line to all this is profit!

 1) What type of condominium do I want?

  This must be carefully considered. Generally there are three types of units to consider.

The condo-tel a hybrid of a condo and hotel room:  This type of condominium is taking the U.S. by storm.  Here the hotel maintains, rents, services your condo and splits the income from your unit based on the agreement with the hotel.  You still pay your own insurance, and homeowners’ association dues and you still hold the risk if someone trashes your unit, but that is always the case with real estate investing.  Some projects have additional fee’s such as housekeeping and marketing fee’s. We will need to do our homework to make sure everything is exposed and accounted for. An added bonus is you can book your own unit when you come to town to check on your investment!

The residential condo/ corporate housing rental unit:  This hybrid combines the function of the temporary corporate housing leasing companies with the condo project.  Here once again the Corporate housing rental agency will rent your unit to tenants and maintain it and receive a split in return for their efforts.

The standard residential condo:  This unit is in a regular owner occupied project without a rental agency but quite often will have a building maintenance component. You are on your own to lease and maintain your condominium in this type of unit.  You are also responsible to the Homeowners Association for the acts of your tenants. CAUTION: We need to carefully read and consider all aspects of the Home Owners Association bylaws, rules and regulations and identify where you may be exposed and restricted.

2) What kind of a structure do I want?
High-rise units can feature views, location and many more amenities but the cost can be anywhere from $1,200 per square foot to $700 per square foot.
Mid-rise condominiums can range from $700 to $300 per square foot but are generally located a little ways away from the tourist areas.  They are generally a short bus or cab ride away.  These units generally will not have rental components included in their projects.
Low-rise condos- These units are generally 2 to 4 stories high and generally rented by the local Las Vegas workforce.  They range in price from $300 to $160 per square foot and you supply your own property management company.

3) Where do I want to purchase my investment condo?
  The closer to “The Strip” you are the higher the price of the unit with the greatest potential for appreciation. 

4) What kind of rules are in the Home Owners Association?
  High-rise condominiums are generally subject to restrictions.  If you buy a full time residence condo you may be limited by the homeowners association as to what your minimum lease term can be or even if you can rent it at all.  Some Associations will only allow a small percentage of the units in their projects for lease.  If you are allowed to lease your unit and then the tenant moves out you may be forced to put your unit on a list to wait your turn for the next available opening for the right to release your unit.

5) How much cash do you have to invest with the closing costs?
Your initial investment dollars will dictate what you can purchase.  Most sales organizations require a 20% cash deposit on the unit and then you wait 2 to three years to close and occupy a newly built project.

6) How much would you like your maximum purchase price to be?
Some people want to operate in the low prices of the market and some find more success in the middle and upper priced market.

Now give me a call and let’s discuss your list and conclusions.  I can then carefully choose the condominiums that meet your investment needs.  And together we can evaluate their individual merits.

Contact Max here NOW!

Sample Hotel-condo projects in Las Vegas

Please click on the pictures below to view these Las Vegas hotel-condos

Sample condo projects in Las Vegas with short term rental management

Please click on the pictures below to view these Las Vegas hotel-condos

Sample condo projects in Las Vegas for full and part time residence

Please click on the pictures below to view these Las Vegas hotel-condos

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Contact Max here NOW!

Prudential Americana Group, Realtors®
Max Schmidt P.C. dba Max Schmidt
Broker/Salesman
871 Coronado Center Dr., suite 100
Henderson, Nevada 89052
(702) 334-2200

Las Vegas condo as an investment