Las Vegas, NV Area First Time Buyers to All Cash Investors: Does it Make Sense to Buy a Home Right Now?
Can you own for less than renting? Can you own a rental and see a decent monthly return on your investment?
Weekly feature w/ 4 homes in different areas of the valley designed to help people from first time buyers to all cash investors to see if the numbers make sense!
Address: 7856 Soda Canyon- Features: SW Las Vegas: 2 Car Garage, 3 Bedrooms
- Price: $124000
- Rental Comps: $1100-1200*
- Estimated FHA Monthly Payment: $1082**
Address: 2104 Lost Maple- Features: East Las Vegas: 3 Bedrooms, Private Backyard, Open Floor Plan
- Price: $94,900
- Rental Comps: $1000-1100*
- Estimated FHA Monthly Payment: $798***
Address: 9821 Silver Dew- Features: South, Silverado: 2259 Sq Ft, REO, Covered Patio
- Price: $229000
- Rental Comps: $1600-1700*
- Estimated FHA Monthly Payment: $1743****
Address: 1025 Evening Fawn- Features: North Las Vegas: 2415 Sq Ft, Large Lot!
- Price: $159000
- Rental Comps: $1450-1550*
- Estimated FHA Monthly Payment: $1319*****
*Rental Price: Comparable range based on terms. Lower end rental price = more conservative lease terms based on best credit and 1 year + lease. Higher end rental price = more liberal lease terms with OK credit, pets allowed and shorter than one year lease terms. All prices based on date of this post. Comparable rental range is not net, it does not factor in the price of repairs, holding costs, property management fees, etc. I will be happy to send you the rental comps via email. Simply request "rental comps for at email address: Renee@ReneeBurrows.com.
** $124000 $39 HOA taxes $2754
- Loan Amount $122,385
- Rate ******6.00% APR = 6.620%(with 1 point)******
- Principle and Interest = $734
- FHA Mortgage Insurance = $56
- Est Taxes = $208
- Est Homeowners Insurance = $45
- HOA = $39
- Total Payment = $1082
*** E $94,900 $31 HOA taxes $1402
- Loan Amount $93,664
- Rate 6.00% APR = 6.720%(with 1 point)******
- Principle and Interest = $562
- FHA Mortgage Insurance = $43
- Est Taxes = $117
- Est Homeowners Insurance = $45
- HOA = $31
- Total Payment = $798
**** $229,000 $10 HOA taxes $2754
- Loan Amount $226,017
- Rate 6.00% APR = 6.720%(with 1 point)******
- Principle and Interest = $1355.09
- FHA Mortgage Insurance = $104
- Est Taxes = $208
- Est Homeowners Insurance = $45
- HOA = 10
- Total Payment = $1743
***** $159,000 $40 HOA taxes $2433
- Loan Amount $156,929
- Rate 6.00% APR = 6.440%(with 1 point)******
- Principle and Interest = $959
- FHA Mortgage Insurance = $72
- Est Taxes = $203
- Est Homeowners Insurance = $44
- HOA = 40
- Total Payment = $1319
******Rates are as of 11/18/2008 and based on a 30 year fixed FHA loan on approved credit and income qualifications. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. Call for financing details 702-966-2494 option 3.
All properties listed here are brokered by Nevada Realty Solutions, LLC. Call 702-966-2494 option 1 (Para español presione el cuatro) for more information on properties.
Also check with your tax advisor for the potential tax benefits of owning a home.
Grant and Bond 100%, Zero Money Down Opportunities for First Time Buyers.
Renee, I love this series you are doing particularly with the photos and square footages and how buying is SUCH a better deal than renting.
I love the Burrows Breakdown !!! Is an awesome illustration.. you are getting me pumped up to buy an investment property out there ! Certainly looks like a great opportunity. Great post again !
Renee, excellent information on the Las Vegas market.
Tim
I like the Burrows breakdown...similar to the Bloom breakdown:)
Gary: For those that can qualify... Many more can qualify than they think so it's worth a shot!
Christopher and Stephanie: Gimme a call when ready!
Tim and Pam: THANKS!
Neal: ABSOLUTELY!! It was suggested by a fellow Vegas collegue here in the rain but I didn't think about the Bloom Breakdown. Do you have any probs with it? If so,just let me know!
It is scary to see how prices have come down! I moved from Las Vegas several years ago and prices were higher then. I think that is one point this excercise misses. Prices do not always go up. People were buying houses as investments instead of lifestyle which is really what they should be thought of as. Isn't that why we got into this mess in the first place, people weren't thinking logically? If one is ONLY trying to save money, I know of plenty of apartments for rent for $500 a month, which would obviously be quite a bit less expensive than owning and one would not have to do any upkeep or worry about trying to sell later. I am not against owning, far from it. I own and I think if one wants their own place and knows where they want to live for the next five to 10 years at least, owning is wonderful. Unfortunately, as we know, Las Vegas is a very transient town, and rarely do people stay in one place that long. For those, renting may be a better deal because they can just give notice and scurry away without having to worry about selling in a possible down market such as today. Don't you think we do a disservice to buyers if we tell them only the good things about ownership and not the possible downside? Isn't that what has gotten so many people in trouble today? How would you feel if you were talked into a $500,000 house a couple years ago and now have to sell for half that?
Brian: I have no clue where you can find a more than one bedroom apartment for rent that is not situated on paradise RIGHT UNDER the monorail for that price
We always counsel our (investor) buyers to buy these for long term holds we always counsel our first time buyers to make sure it makes sense. THat is the point of this exercize - to show if it makes sense or not.
It definitely makes sense to plop down $100K in cash on something that grosses $850 a month ($600 on the high side after expenses) when a CD or money market earns you what, 3-something percent a YEAR.
The investors that are here are the REAL investors, ones that rent out the properties to look for returns on their investments. Do you see anyone earning more than 6-8% a year in the stock market or CDs or savings? Not really.
What we aren't seeing these days are the pretend investors - the ones that took out 100% ARMS and were expecting to turn the property over (sell) in 6 months. That leads to our #1 victims of foreclosure:
THE RENTER
Renters are getting sick of putting down their deposits only to get foreclosed on in a couple of months. You see, for some, a one bedroom apartment on Paradise that is located right underneath the monorail (as pictured) for $500 a month doesn't suit their housing needs.
The renters are quickly turning into buyers. Some never believed they could buy for less than renting and be in control of their own destiny. What a concept!
Now, buying isn't for everyone BUT it is really cool when someone can buy a home, for less than rent, intends to live in it for a long time, when they never thought it would be possible!
For a mere $300 more a month, (if you look in main post at 2104 Lost Maple:) You get two extra bedrooms 2.5 times the living space, a garage, your own private backyard AND NO MONORAIL ABOVE YOU!
Absolutely buying makes sense for many people. The point I was trying to make is that average people buying homes as investments is what got us into the current situation in the first place, those "pretend investors" as you well put it. We can totally agree on that. For the average homeowner, buying should be about lifestyle, as you mentioned, having that extra space, privacy, your own yard, your piece of the American dream. I totally agree it is great when someone gets the chance to own their dream. I just think we need to let buyers know the full cost of home ownership, especially that prices may go down, which is almost never mentioned, and that SHORT TERM, renting may be better than buying. By the way, here is the link I saw: www.forrent.com. Lots of $500 apartments, not a monorail in sight.
Brian: The loans are no longer available that got us in that mess that we were in. The current investors here are the all-cash types, snatching up inventory left and right. There are financed investment caps (limits) on the amount of properties you can buy and the underwriting guidelines <for investment properties> and rates are fairly punitive. Rest assured that it is a different market than you left.
That is great to hear. It sure looks like properties are a bargain right now from the ones you posted. Nice to hear as well that people have cash money to buy. With all the doom and gloom in the media, one would think everyone is broke. lol Glad you are doing well. May God bless you,
Brian
Brian: Thanks for stopping by again! The cash flow makes sense so we do have the cash here :grin: If you can qualify, there are some fantastic bargains out there. As you know, many people work on tip compliance here so they can no longer qualify with the disappearance of the stated.