Las Vegas Real Estate Investing: So Long Flip! Hello, Rental!

The current real estate environment of foreclosures and bank-owned properties does make you long for the days of easy profits from house flipping. Just a couple of years ago you could buy an old house, fix it up a bit and sell it for a nice profit a month later. The spirit and financial benefits of flipping was so addictive, those who wouldn’t normally gamble an investment in real estate were trying their hand at it. But the days of flipping were short lived, and the shock of the real estate market sent cautious investors scattering.

But there’s still quite a bit of money to be made in the current real estate market. Even if you can’t flip a house, you can still rent it? Rental incomes are up in Las Vegas and almost every person leaving a foreclosed house needs one to rent. Why not earn some money buying up rental properties?

Renting is Easier than You Think

When many people think of renting, they imagine heading out to the properties to fix broken toilets or collect rent that is months overdue. While you can certainly take that approach if you’d like, rental management companies make it simple to earn renters’ income.

Start by buying a property. Hire a contractor to fix it and then turn over the keys to a management company. The company will handle just about everything to do with the renters – finding them, doing background checks, handling the payments, fixing problems. In return you surrender a portion of the rent you’re earning for the peace of mind. Simple!

Investing for Income Diversity

If we’ve learned nothing else from the recession, we’ve learned that nothing is set when it comes to investments and job security. Real estate investing is an ideal way to diversity your assets. It’s important to remember, however, that you’re not investing in real estate for fast money – that would be the house flipping that is long gone.

With true real estate investing, you’re holding the property for a longer term. Renting your investment property can make you quite a bit, especially with rents rising. By holding your property for the long-term, you also have the option to unload it years down the road when the Las Vegas market begins to recover and home prices rise again. A very long-term flip, if you will.

Retirement Income from Real Estate Investing

Collecting properties for rent is a nice way to supplement retirement or a part-time income as well. If you’re able to buy one or two properties every couple of years, you can easily accumulate a dozen rental homes before retirement.

Even if the rent and property management fees are breaking even now with the mortgage payments, you’re in a position to benefit from rising rents over the years. If you own ten rental properties, for example, and each brings you a profit of $300 per month after fees and mortgage payments, you’re looking at $3,000 extra each month – a nice supplement to retirement and to your income now.

You can’t buy a home and expect to make a year’s salary flipping it a month or two later, but there are tremendous benefits to be reaped from the Las Vegas real estate market as it stands now. Take advantage of the favorable interest rates to lock in investment and rental properties while prices are low, and you’ll be able to enjoy the income long into the foreseeable future.

Feel free to contact us at 702.376.7379 to begin locating your next investment property.