A report compiled from Rice Real Estate data back in 2011 showed Las Vegas as one of the top U.S. Cities for Investor Property Cash Flow. Las Vegas met and sometimes exceeded 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. Back in 2011 the LasVegas market was hovering around 1.33%.
Las Vegas *NO* longer Exceeds The 1% Cash Flow Rule
Currently Las Vegas has investment properties average between $150,000 and $250,000 and get $1195 – $1595 per month in rent said Heidi Rice of Rice Real Estate. While these numbers don’t meet the 1% rule, purchase prices are about 30% lower than the height of 2005 & 2006.
Even with the increased prices it has been decades since investors have seen these types of returns on residential real estate investments. Statics provided 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?
Rice Real Estate’s property management division (702-574-1567) provides management services that include maintenance and repairs, renovation services, rent collection and leasing for residential properties in the Greater Las Vegas area.
Heidi Rice has been managing residential properties since 2001 and 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 cornerstone of our long success in the business.
Real Estate & Property Management is a boutique residential property management company serving the Las Vegas & Henderson markets. We’re focused. We’re dedicated. We’re results-oriented. Learn more about our services by calling: 702.574.1567
We have simple fees.
- 8% of gross monthly rent (minimum $100)
- $300 Tenant Placement
- One-time property set-up of $295