A report compiled from Rice Real Estate data shows Las Vegas is one of the top U.S. Cities for Investor Property Cash Flow. Las Vegas meets and even exceeds the 1% Rule. What is the 1% rule? In general, all you need are two numbers to evaluate whether an investment property will sufficiently cash flow or not: the price of the property and the rental income you will receive each month. If the monthly rent is around 1% of the purchase price then you are pretty much guaranteed a positive cash flow rental property. The Vegas market is hovering around 1.33%.
Las Vegas is Exceeding The 1% Cash Flow Rule
Currently Las Vegas has investment properties that cost between $120,000 and $130,000 and get $1295 – $1395 per month in rent said Heidi Rice of Rice Real Estate. This equates, on average, to getting cash flow of 1.33% of purchase price, which is an outstanding return on your investment. It has been decades since investors have seen these types of returns on residential real estate investments. Local housing statistics released by the Greater Las Vegas Association of REALTORS® (GLVAR) show many savvy investors already know how strong the Las Vegas market can be for real estate investment. GLVAR President Rick Shelton, a longtime local REALTOR®, said “the percentage of local homes purchased with cash held steady at 45.9 percent, just shy of record levels. This suggests investors continue to see value in buying local real estate at bargain prices”, he said.
And, as Heidi notes, the population in Vegas has remained steady. Current population numbers are hovering right around 2,000,000 residents. All of these people need places to live. Many previous home owners have become renters because they lost their homes to foreclosure or short sale. Investors from out of state have come into the Las Vegas market and they’re offering great rentals for local residents.
Why Choose Rice Real Estate to Manage your Rental Property?
The Broker, Heidi Rice, reviews all prospective rental applications and signs all leases. She is also in charge of advertising, including posting the vacancy list on our website, MLS, Craigslist and other online services. She shows all units herself. This personalized approach allows us to aggressively pursue prospects and rent units as quickly as possible. All showings are done by a live person. No picking up keys by prospects to show themselves. Rice Real Estate also boasts the most extensive website and best software in the industry, which allows for quick, online communication between all.
Rice Real Estate is located in Las Vegas, NV and has been helping investors purchase, sell and manage their investment properties since 2001. We treat all properties as if they were our own. To that point, we provide not only professional management, but also common sense and personalized service at competitive rates — the cornerstones of our long success in the business. We offer partial, full or extended management services. Each contract is tailored to the needs of the property owner. Rice Real Estate is now accepting residential units such as Condominiums, Multi-Family, Townhomes and Single Family Residences (SFR’s).