Las Vegas Investment Properties 2021-2022

By Rice Real Estate

Willing to invest in A and B class residential real estate? Then Las Vegas is one of the best places to buy investment properties. This rapidly growing city is one of the hottest real estate markets on the west coast. Right now it is the best time to buy and rent a property in Las Vegas, as the market has not reached its peak yet. But the question always is…where are the best neighborhoods for buying Las Vegas investment properties? Here are 3 examples of class A and class B investment properties across the valley.

Las Vegas Investment Property Example # 1

Westwood Village neighborhood: 204 Thurston Street Henderson 89074

Market rent – $1700/mo
Market value – $350k
est. taxes – $140/mo
Insurance – $45/mo
HOA – $15/mo
Mgmt – $136/mo

Las Vegas Investment Properties — Example # 1 Westwood Village

Las Vegas Investment Property Example # 2

Green Valley Ranch: 1979 Thunder Ridge Circle Henderson 89012

Market rent – $2200/mo
Market value – $450k
est. taxes – $175/mo
Insurance – $55/mo
HOA – $63/mo
Mgmt – $176/mo

Las Vegas Investment Property Example # 3

Red Rock Country Club (guard gated): 1990 Country Cove Ct. Las Vegas 89135

Market Value – $1,000,000
Market rent – $5000/mo
Taxes – $770/mo
Insurance – $120/mo
HOA – $245/mo
Mgmt – $400/mo

Low property taxes are one of the main reasons Las Vegas investment properties are so attractive. On average property taxes are about 1/2% (.005%) of the purchase price. For example, a property purchased for $350k would incurred annual property taxes around $1,750 annually ($146 monthly). This public search page can be used to determine current property taxes for any property in Las Vegas and Henderson: Clark County Treasurer.

Rice Real Estate & Las Vegas Investment Properties

With more than 30 years of investment real estate & property management experience we understand the needs of our clients no matter where they are in the investment cycle. Whether you’re buying, selling, or looking for full service property management we will put our resources and experience to work and drive your profitability. Unlike our competitors who are transactional in their approach, Rice Real Estate & Property Management is known for the caliber of service we offer our clients. Through excellent communication, personalized service and our company’s high standards we have earned the long-term respect of property owners.

Experience.

Founded in 2010, Rice Real Estate is Las Vegas’ premier investment sales and property management company with millions of dollars of residential real estate assets under management. Our firm has crafted a culture designed around full transparency, reliable communication, and efficiencies for both owners and tenants. Furthermore, our policies and procedures allow us to effectively optimize a property’s performance and profit while nurturing Tenant relations to keep long-term tenants.

Expertise.

We are investment property specialists and use a process-driven approach to increase efficiencies, reduce risk and drive performance and profitability. We are experts in our field and selective when it comes to new partnerships, adding only select properties each year in order to provide the highest level of attention to each one. Our company voice reflects the high standards we demand of ourselves and we deliver these high standards to you with quality property management.

Owner’s Mindset.

Our firm is responsive. We work hard to quickly turn properties over and find quality tenants. We understand each day a house is vacant equates to lost rental income. We always strive to increase owner profit while focusing on preserving the integrity of your investment. Our efficient vendor accounts payable strategy provides us priority scheduling and preferred pricing. In addition, our team responds to emails and phone calls timely, tenant maintenance requests are handled promptly and Owners have 24/7 access to an encrypted online portal for financial reports and secure document storage. We make sure to be informative and transparent every step of the way. We manage with an owner’s mindset.

Mark Rice: Founder & Real Estate Agent

Mark has over 15 years of real estate industry experience. Prior to founding Rice Real Estate he was a top performer with Bank of America’s consumer mortgage division. Mark utilizes his finance and economics background to generate attractive returns for Rice Real Estate’s investment clients.

Mark guides investors to high quality assets and focuses on neighborhoods where he sees growth potential driven by economic and demographic trends. Our firm’s management portfolio provides him proprietary insight into investment properties in Las Vegas, Henderson, Green Valley and Summerlin. Mark guides his clients with integrity allowing them to invest capital in residential real estate with conviction.

Heidi Rice: Broker, Property Manager & Realtor©

Heidi has been managing residential real estate since 2001. In 2010 she moved to Las Vegas with her husband Mark and opened a residential real estate brokerage focused on investment sales & property management.

Heidi is a very thorough, professional, and responsive property manager. Her financial reporting is timely each month, along with copies of all receipts & full accounting – completely transparent. She has good control over her vendors and the workmanship is excellent. The move-in and move-out inspections are thorough with great attention to detail.

Heidi has always had a passion for real estate investing and she is living her dream life as an investment focused property manager in fabulous Las Vegas, Nevada. Contact her directly to confirm your property is in her management service area: 702-551.9592 ext 700 or via email.

Scoring Card | Tenant Screening

By Rice Real Estate

Download Rice Real Estate’s Scoring Card.

We’re often asked what we look at, and how we evaluate the data we collect to arrive at a decision whether or not to rent to a prospective tenant. In managing single family homes in Las Vegas & Henderson, it is very important to our clients that our tenant selection process be sufficiently cautious, but not overly so. Lack of caution in tenant screening results in high turnover, lost rent, and property damage. Overly-cautious tenant screening methods result in long-term vacancies, lost rents, and, yes, property damage. Vacant homes deteriorate quickly.

Our many years of property management experience has paid off, particularly in the area of resident screening. We have learned that, not only is it important to review the credit report of a prospect, but it’s important to look at a number of other factors, as well.

Do they have the means to pay the rent?

How long has the prospect been employed in his/her current line of work? Is this a new career for her, or has she demonstrated a long-term commitment to her field of employment? This makes a difference. It indicates stability, or lack thereof. Income counts, too. Is the paycheck going to cover not only the rent, but the prospect’s other expenses? If not, something’s going to be sacrificed. As a landlord, we don’t want that sacrifice to be the timely payment of rent.

What does the former landlord have to say?

Better yet, what do the last two or three landlords have to say about your prospect? It’s not unusual for the current landlord to soften his evaluation of the prospective tenant. After all, he’s still the current landlord. The former landlord, however, generally feels far removed enough from your prospect that he’s apt to be frank and forthcoming with information. Do you take what a landlord says at face value? Of course not! Whether that information is positive or negative, it is subjective in nature. The landlords’ feedback is helpful, but should never be a stand-alone reason to accept or deny a prospect.

What about bounced checks and criminal history?

Are those items important? We think they are. Combined with the other factors we evaluate, these items help to provide a complete picture of the likelihood of the prospect living up to his/her end of the rental agreement terms.

Tenant Screening…the whole picture:

The greatest lesson we bring to the table, in terms of tenant screening, is the knowledge that no single factor in a tenant’s financial picture, residential history, or references stands alone. All facts, taken together, paint the picture of the prospective resident. Taken together, these facts and bits of information are going to lead us to a more accurate conclusion as to the likelihood our prospect will do the two things we require… pay the rent and take good care of the property.

Rice Real Estate & Las Vegas Property Management

Rice Real Estate is a full service residential real estate brokerage offering worry-free residential rental property management in Las Vegas, Green Valley Ranch, Seven Hills, Silverado Ranch, Southern Highlands, Mountains Edge, Summerlin and Henderson, Nevada. Through our extensive network of renters and state-of-the-art tenant screening process our Las Vegas Property Managers strive to exceed your expectations.

Our Las Vegas Property Management team provides not only professional residential management, but also common sense and personalized service at competitive rates – the cornerstone of our long success in the business.

Q + A for New Owners

By Rice Real Estate

Rice Real Estate has never had to evict a Tenant we placed into a managed rental property. Our monthly management fee is 8%.

How are applicants screened?

Our strongest work must take place with the screening process. Securing great tenants is in everyone’s best interest. We use a state-of-the-art resident screening process that analyzes income, credit, rent payment history, employment history, background check and other factors that indicate the likelihood the tenant we place in the home will perform according to his/her obligations under the rental contract. Note: by utilizing our proprietary scoring card, Rice Real Estate has never had to evict a Tenant we placed into a managed rental property. Download Rice Real Estate’s Scoring Card here.

How is turnover minimized?

Quickly following up on maintenance requests not only keeps the tenant happy but will also keep the property in good condition. We will advise our owners on what items should be repaired versus replaced, deferred versus immediate. Rice Real Estate maintains a proper balance between tenant loyalty and maximizing income.

Protecting your asset also means using experienced repair and maintenance professionals. Rice Real Estate maintains excellent relationships with highly rated vendors. This allows us to quickly and correctly diagnose problems and fix them right the first time. Rice Real Estate diligently protects your asset by ensuring your home is maintained properly.

How do you market and advertise my property?

Rice Real Estate is very serious about finding highly qualified tenants and does everything possible to capture the greatest applicant pool. Our rental properties appear on numerous websites such as Hotpads, Trulia, Zillow, Realtor.com, Facebook, ListHub (feeds to over 40 websites) and our proprietary website www.RiceLasVegas.com. We also advertise directly to 14,000+ local agents.

Unlike most of the property management companies in Las Vegas we understand the importance of being available when the prospective tenant has the time. For this reason, we answer and respond to phone calls, text messages and emails every day of the week, including Saturdays and Sundays. Rice Real Estate’s average days on market for a “rent ready” vacant property averages 14-21 days.

Our rigorous screening process and detailed scoring system help ensure we secure highly qualified tenants for your property.

HOW MUCH RENT WILL MY PROPERTY BRING?

Rice Real Estate performs ongoing rent surveys of the Henderson and Las Vegas market to stay abreast of changes in the marketplace. We will recommend a rental rate based on a number of factors, including how quickly you need to rent the property and how the property stacks up against the competition in the local market. Our recommendation is just that – a recommendation. Should you desire, you can have the final say as to the rental rate.

WHAT KIND OF CONDITION DOES MY PROPERTY NEED TO BE IN TO FIND A QUALITY TENANT?

The property’s condition is one of the most important aspects of marketing a vacant rental property. Properties that are not “Rent Ready” when they’re placed on the rental market tend to be slower to rent and attract renters who are not only willing to settle for less than top quality, but who treat their rental properties with less care and concern than we want to achieve for our owners. Furthermore, quality renters typically can’t envision what the property will look like after we do this or that…telling the prospect we’re going to be painting, or going to be replacing carpets is virtually useless. The first impression of a vacant property is the lasting impression of that property. That’s why we urge our owners to take care of the basics: fresh paint, clean floor coverings, functional window blinds, and everything in good working order.

ARE PETS ALLOWED IN RENTAL PROPERTIES?

An Owner makes the final decision if pets are allowed in a rental property. However, keep in mind that 65 – 70% of tenants will have a pet of some type. If you do not allow pets, you are immediately negatively impacting your market. We can certainly still rent your home but it might take a little longer so you could experience extended vacancy and therefore lost rent. If you do allow a pet, a pet addendum will be signed and additional security deposit is required.

Don’t confuse a “pet” with a “service” or “companion” animal. It is illegal to discriminate against service animals, so we will absolutely rent to a tenant with a verifiable service animal. We cannot take any additional security deposit, nor can we decline any specific breeds that we might otherwise not allow in our properties.

WHAT HAPPENS WHEN MY PROPERTY NEEDS A REPAIR?

Any repair or maintenance costing less than $300 will be executed by Rice Real Estate’s staff. Most repairs costing more than $300 will be subject to the Owner’s approval.

Emergency repairs do not require prior owner authorization. Emergency repairs are defined as property-threatening; where failure to immediately remedy the situation will result in further damage to the property and/or safety of the tenant. By law, Owners are required to maintain their property in a “habitable” condition for their tenants at all times. Examples of emergency repairs include: flooding, no heat, no air conditioning, no running water, electrical sparks or no functional toilet (if only one toilet). Examples of non-emergency repairs include: lack of hot water or failure of an appliance, including a refrigerator. We do not employ our own maintenance staff and we do *not* profit from any maintenance work done on your property.

WHAT HAPPENS IF MY TENANT DOESN’T PAY RENT?

Rice Real Estate enforces a very strict rent collection policy to promote our Owners’ interests. All rent payments post on the 25^th of every month and late on the 2^nd day of the month. For example, April’s rent would post on March 25^th and be due April 1^st. If rent is unpaid on the 2^nd day of the month, we make contact with the tenant and a late charge may be assessed. If the rent remains unpaid by the 3^rd day of the month (or, next business day, if the 3^rd falls on a weekend or holiday) an eviction notice for non-payment of rent may be served. The tenant is held liable for the costs of filing and serving the notice.

Under Nevada law, the tenant then has 5 judicial days to pay the rent or vacate the property. In our experience, most tenants will pay full rent before the expiration of the notice. If the tenant does not pay or vacate within the 5 days prescribed, the next step is a court order for lockout. Through a 3^rd party eviction company (additional fees apply) this is a process we can coordinate for you.

WHAT HAPPENS IF THE TENANT VACATES AND LEAVES THE PROPERTY DIRTY OR NEEDING REPAIRS?

Rice Real Estate will conduct a move-out inspection of the property once it becomes vacant. We then compare the move-in inspection (including photos) with the move-out to determine what items above normal wear and tear are chargeable to the tenant. To read more about “normal wear and tear” of a rental property click here.

WHO HOLDS MY TENANT’S SECURITY DEPOSIT?

Nevada law requires us to hold tenant security deposits in a trust account separate from owner funds.

HOW OFTEN DO YOU CHECK ON MY RENTAL PROPERTY?

If we have reason to believe there may be a problem (a call from a neighbor, repeated late rent, or other indicators), we have the ability to perform an interior inspection on a minimum 24-hour notice. As needed we will perform inspections of all occupied properties. We are also able to notify neighbors on how to reach us if they have a concern about the property.

Tenant Handbook

By Rice Real Estate

Think of this home as your own. During the term of this lease, you are in possession of the dwelling and yard and this Tenant Handbook can assist. Your obligations are similar to those of the property owner, and you are expected to care for and maintain the premises.

Download a current copy of our Tenant Handbook:

TENANT COMMUNICATION

The online Tenant Portal streamlines your communication with us. It allows you to pay rent and submit routine maintenance requests online. If you have not received an email with a link to set up your Tenant Portal account, contact us. Follow the link in the invitation email, set up your own password and your account is activated.

EMAIL is the preferred method of communication. Rent reminders, payment receipts, notices, maintenance and general correspondence will utilize this method of communication.

MOVE-IN REMINDERS

Property Condition Report: Due within 7 days of move-in.

Mail Keys: If not received or if mailbox lock is malfunctioning, bring your lease and ID to your designated post office: www.usps.com/locator. The Post office will rekey your mailbox within 7‐10 business days. They’ll provide you with 3 new mail keys.

Garage Remotes: Reminder, it’s the Tenants responsibility to reprogram all garage remotes and garage keypads.

Pool and Gym Keys, Gate Remotes: If not received, purchase & pick up at the HOA office. Email [email protected] to get the Name/Address/Phone of HOA.

TENANT RENOVATIONS + ALTERATIONS

It is policy that Tenants do not perform repairs or alterations. If you do want to make a special request for renovation or repair to the property email your request to us & we’ll send it to the Owner for approval *DO NOT* proceed with any work until you’ve received approval from us.

PAYING RENT

1. Pay rent online: www.RiceLasVegas.com
2. Make checks payable to: Rice Real Estate.
3. Rent is due, in advance, on the 25th of each month. For example, April’s rent will post on March 25th and is due April 1st. Rent is considered late when received on or after the 2nd of each month. There is a $100 late fee.

Las Vegas Property Management Rates & Fees

By Rice Real Estate

Estimated reading time: 5 minutes

Las Vegas Property Management Rates & Fees

Fees for Residential Las Vegas Property Management Services average 8% of the gross monthly rent collected. In addition, a $350 leasing fee is common along with a $300-500 MLS referral fee.

The Las Vegas market is competitive for property management services and most managers will waive their set-up fee if asked (usually a $300 savings). Also ask a manager about their eviction statistics. Rice Real Estate has never had to evict a tenant we screened and placed into a managed rental property.

Selecting a Property Manager

Monthly management fees are just one component of selecting a Las Vegas property management company. Tenant retention, efficient tenant turnover and effective tenant screening are items that greatly impact a landlords profits and they won’t show on a financial statement. Having the right property manger will boost long term profits for a landlord. Selecting a property manager based solely on the lowest management fees can end up hurting your bottom line more than you think. Or going with the biggest property manager managing hundreds or thousands of units and getting lost in the shuffle.

Rent Ready Property Condition

A rent ready home is the most important aspect of marketing a vacant rental property. A rent ready home has a clean interior, landscaping recently trimmed, fresh paint, new/newer carpet and everything in good working order. In addition, the home should be readily available for viewings, priced at market and advertised with professional photos. With a rent ready home a quality Tenant could be secured in 7-10 days.

What About Pets in Rental Properties?

The final decision as to whether or not to allow a pet (or pets) is always the Owner’s (except for service animals as permitted by law). Approximately 62% of the households in the US have pets. By eliminating the ability to allow pets on a case-by-case basis an Owner is essentially eliminating over half the pool of qualified renters for a rental property. When considering pets, look at such factors as the breed of the animal, bite history and the prospect’s history in renting with a pet. Higher security deposits are recommended when a pet is approved thereby giving added assurance that, should there be any damage to the property, there are funds to make it right when a Tenant vacates. A pet and/or animal profile should also be kept on file with www.PetScreening.com.

Where is the Tenants Security Deposit Held?

Nevada law requires a Las Vegas property manager to hold tenant security deposits in a trust account separate from owner funds.

Rice Real Estate & Property Management

Experience.

Founded in 2010, Rice Real Estate is Las Vegas’ premier investment sales and property management company with over $50 million of residential real estate assets under management. Our firm has crafted a culture designed around full transparency, reliable communication, and efficiencies for both owners and tenants. Furthermore, our policies and procedures allow us to effectively optimize a property’s performance and profit while nurturing Tenant relations to keep long-term tenants.

Expertise.

Owner’s Mindset.

Our firm is responsive. We work hard to quickly turn properties over and find quality tenants. We understand each day a house is vacant equates to lost rental income. We are always strive to increase owner profit while focusing on preserving the integrity of your investment. Our efficient vendor accounts payable strategy provides us priority scheduling and preferred pricing. In addition, our team responds to emails and phone calls timely, tenant maintenance requests are handled promptly and Owners have 24/7 access to an encrypted online portal for financial reports and secure document storage. We make sure to be informative and transparent every step of the way. We manage with an owner’s mindset.

Heidi is dedicated and highly skilled. She has always had a passion for real estate investing and she is living her dream life as an investment focused property manager in fabulous Las Vegas, Nevada. Contact her directly to confirm your property is in her management service area: 702-551.9592 ext 700 or via email.

Using a 1031 Exchange to Purchase Investment Properties in Las Vegas

By Rice Real Estate

Have you ever wondered how using a 1031 Exchange to purchase investment properties in Las Vegas worked?

Section 1031 of the Internal Revenue Code has been called the single greatest wealth building tool available to real estate investors. If you are unaware how Section 1031 of the IRC can magnify your returns and help you create wealth, review this:

An investor who purchases $100K worth of stock in 2010 and sells the stock today for $200K. The investor yields a whopping 100% return, correct? Well yes, but don’t forget that when tax time comes around, our stock market investor will owe the IRS and State Taxing Authority about $30K. After taxes, the profits from his stock investment plummets from $100K to $70K. Still not a bad return, but after taxes the investor now has only a total of $170,000 to reinvest.

Now let’s contrast this with an investor who makes the same returns in the real estate market. A property purchased for $100K, appreciates to $200K. The investor earns the same 100% return. The major difference however, is the investor can elect a 1031 Exchange and defer the capital gains taxes. Doing so leaves the investor with a total of $200K to reinvest.

The above example is the type of exchange most investors think of when they hear 1031 exchange. Did you know there are many more types of exchanges? First, let’s take a look at this history of exchanges.

History and Benefits of Tax-Deferred Exchanges

Tax-deferred exchanges originated in 1921 as simple two-party barter exchanges. Over the passing decades tax laws changed by requiring exchanges to be multi-party transactions. In 1991, the Internal Revenue Service (“IRS”) formally defined the role of the “Qualified Intermediary.” The Qualified Intermediary is also known as an Accommodator or Facilitator. Investors should seek out a Qualified Intermediary capable of handling the proper execution of necessary documentation as well as informing investors of the various facets of exchanges.

Today §1031 of the Internal Revenue Code governs exchanges. An exchange typically involves a Qualified Intermediary receiving the sale proceeds of the property the investor wishes to sell (“relinquished property”). The investor then instructs the Qualified Intermediary to purchase the new property (“replacement property”) and convey title to the replacement property to the investor. Commercial, agricultural, industrial, residential or vacant land may all be exchanged. By properly effectuating an exchange, the investor can defer the realization of capital gains on the sale of the relinquished property.

This deferral allows funds that would have otherwise gone to pay capital gains tax to be allocated toward a greater investment. An investor is also permitted to defer the 25% tax on the recapture of depreciation taken on an investment property when they elect to effectuate a §1031 exchange.

TYPES OF EXCHANGES

Delayed Exchange

A delayed exchange is the most common type of exchange. Certain IRS requirements must be met to structure a delayed exchange. Under this arrangement an investor may take advantage of the full exchange period to acquire a replacement property.

Simultaneous Exchange

A simultaneous exchange occurs when the relinquished property and the replacement property are transferred concurrently. Some investors erroneously believe that two transactions closing on the same day satisfies the exchange requirements. Although ERI does not hold funds in a simultaneous exchange, it functions in the critical capacity of creating a reciprocal trade by receiving the relinquished property and acquiring the replacement property for the investor. ERI provides an essential paper trail validation of the flow and structure of the transaction, ensuring the preservation of “safe harbor” treatment for the deferral of capital gains. It is strongly recommended that a Qualified Intermediary be employed to ensure the validity of a simultaneous exchange.

Build-to-Suit or Construction Exchange

An investor may choose to improve a replacement property by building a structure or making improvements to an existing structure on the property. As with any exchange, the exchange must be opened prior to the close of escrow on the relinquished property. Despite the complicated
and time-consuming nature of this type of exchange, it can be properly executed.

Reverse Exchange

Reverse exchanges are the most complex type of exchange. Such an exchange permits the investor to acquire their replacement property before the relinquished property is sold. Under no circumstance may an investor be on title to both properties simultaneously. In September 2000, the IRS indicated that a reverse exchange would be permitted if the transaction fell within the scope of “safe harbor” protection.
The durational requirements of the “safe harbor” require the identification of the relinquished property within the 45-day identification period and the sale of the relinquished property within the 180-day exchange period. The trigger date for these periods is the “parking” of either the relinquished or replacement property with an Exchange Accommodation Titleholder (“EAT”). Reverse exchanges are effectuated in one of two ways depending on which property is to be “parked.” Under either scenario, the parked property must be held by the EAT for federal income tax purposes.

Finding a Qualified Intermediary

A CPA with 1031 exchange experience, a real estate attorney, or a reputable title company can be good sources for referrals to qualified intermediary services. Another excellent source for finding a knowledgeable qualified intermediary is through the Federation of Exchange Accommodators (FEA). The FEA has a qualified intermediary certification program with a directory of its members that are Certified Exchange Specialists.

We’ve personally worked with Exchange Resources, Inc based in Southern California. Exchange Resources, Inc. is one of the largest independent Qualified Intermediaries in the nation serving individual and institutional investors across the country and abroad. ERI has attorneys on staff who provide personalized attention to complex issues and are available to discuss exchange matters with investors’ tax and legal advisors. ERI also provides information in Spanish. ERI’s routinely helps individual investors with their exchange needs.

Rice Real Estate & Property Management

If you’re interested in using a 1031 Exchange to purchase investment property in Vegas give Rice Real Estate a call. We can help you source a residential investment property for purchase and help you manage it long-term.

The material in this article is presented for informational purposes only. Rice Real Estate is a licensed real estate brokerage in the state of Nevada. Rice Real Estate performs the duties of a licensed real estate brokerage and permitted property management company. We do not offer 1031 exchange, legal or tax advice.