Unveiling the Secrets of Las Vegas Real Estate: Market Trends, Pet Policies, and Property Investment Strategies

Ever wanted to learn the secrets of the Las Vegas real estate market? Mark Lister from Nevada Superior Properties joins us once again to unravel the mysteries of the desert city's thriving property scene. We chat about the latest trends in rentals and sales, examining the impact of high interest rates on potential buyers. Dive into the pool vs no-pool property debate and hear about the seasonal market slowdown effects. Mark gives us a glimpse into the inventory of single-family homes and rental properties, forecasting market movements post-Thanksgiving.

Renting out properties when pets are involved can be a wild ride, but fear not, Mark has some sage advice for those of us navigating these choppy waters. We discuss the potential financial fallouts when properties are not pet-friendly and explore strategies to safeguard both the property and the owner from any pet-related damages. Mark shares about the value of using tools like Pet Screener to authenticate potential tenants and their furry friends, including emotional support animals. 

Switching gears, Mark shares his nuggets of wisdom on effective property marketing and tenant vetting. He underscores the power of high-tech and low-tech marketing strategies, emphasizing the importance of accessibility and creating a positive first impression on potential tenants. And if you've ever struggled with separating the good tenants from the bad, Mark has some invaluable tips on vetting, including key factors like FICO scores and rental history. Wrapping up, we explore the concept of long-term rental property investment as a viable strategy for financial growth. Mark's insights will certainly equip you with the knowledge to make informed decisions in your real estate endeavors.

Transcript

Speaker 1: 0:15

Good morning Las Vegas and welcome to Vegas. Realty Check. I'm your host, Tiana Carroll, and my co-host, Trish Williams, is a little under the weather. We're in fall here in Vegas, so I guess it makes sense. So she's not joining us today, but we do have a returning guest, Mr Mark Lister from Superior Home Management. Is that what I said?

Speaker 2: 0:34

Nevada Superior Properties you got a problem right.

Speaker 1: 0:35

I got the Superior Properties.

Speaker 2: 0:39

Superior is all that we care about. That's right.

Speaker 1: 0:41

This man offers superior service. Anybody we've ever referred to him as property management. He's been very pleased with them over 23, 24 years.

Speaker 2: 0:48

Almost 24 years now.

Speaker 1: 0:50

Yeah, in the business. So you know property management. Yes, nevada Superior Properties. Bookmark it if you need a manager. Mr Mark Lister, thanks for joining us today. How are you doing, buddy?

Speaker 2: 1:01

Doing fabulous, yeah, doing good.

Speaker 1: 1:04

Yeah, it's been about eight, nine months since we've seen you Good to see you, Mark.

Speaker 2: 1:07

Yeah, we saw you back in spring.

Speaker 1: 1:09

Things were a little bit different back then, right.

Speaker 2: 1:11

Yeah, yeah.

Speaker 1: 1:12

Different market, different time.

Speaker 2: 1:14

Well, now we're in the slower months for property management. This is the time where you try to avoid, because it's much tougher to rent a property in November, december, january, february.

Speaker 1: 1:23

Yeah, yeah, that makes sense. It's hard to get uprooted and change your life in the middle of a holiday season, and that's where we are, because we are on what is today, the 16th of November. I can't even believe we're midway through November. Where did the time go? I know it's crazy. So each episode we start you've been here before, you know we start with our numbers and we get this. This episode, as well as last episode you were on, we're also going to touch on rental numbers. Also, we just do what's for sale single family homes in the valley. So this today, this morning, we have 4,114 single family homes available in the valley this week. So that is actually a little bit down from last time you saw we're here. When you were here in the spring, we had that spike in inventory and it was like 4,600 homes on the market and now we're at 4,100, which is up from where we've been end of summer, beginning of fall.

Speaker 2: 2:21

Well, you have a lot more properties for sale then than there are on the rental market. The rental market numbers is this total 3,607 properties on the market. That includes condos, townhouses, houses, anything you get on them, less for rent, that's in that number. Wow, we break it down to single family houses, that number goes down quite a bit.

Speaker 1: 2:43

Yeah, that 2239,.

Speaker 2: 2:46

this is on the market, so it's big houses, small houses 2239.

Speaker 1: 2:50

Okay, that's not a lot of variety then.

Speaker 2: 2:54

There's not a lot Now. The normal market really should be around 6,000. So you think that'd be really good, but, however, the market's slow for this time of year, so it's good that we don't have more.

Speaker 1: 3:05

More to sit. Yeah, Are they moving fast. Usually rentals move pretty quickly right, it depends. You have to.

Speaker 2: 3:14

Yeah, when you get over 2,000, it slows up significantly. The higher you go up over 2,000, the more it's going to slow down. Depending on what the property has as a pool, it may go a little bit quicker pool's always a desirable. But if you're under 2,000, then it goes much, much quicker. Much easier to get rented. You know it comes more. You're more in affordable price range there.

Speaker 1: 3:38

Yeah, yeah, that makes sense. I also cover the sold numbers, which we are so down. So, so, so down in our sold numbers. Compared to last time you were on the show, which was just in the beginning of spring, we had 900 homes well, just under 900 homes that had sold that week, and this week we have 383 homes that sold. So that's down, and our price reductions, though, are way down in comparison. We had almost 700 price reductions the last time you were here, in the spring, and now we have 260 price reductions, which is even down from last week and the week over that. So people have adjusted their prices here and everything seems to be settled.

Speaker 2: 4:21

Is that because of the season, or is that because of higher interest rates?

Speaker 1: 4:24

I think it's a little bit of everything right. So we're sort of in this weird perfect storm where we have ourselves technically in a seller's market but sellers are giving concessions because of high interest rates and buyers are struggling to get into properties. And then I think some of it has to do with the season. Now we will, right after Thanksgiving, see a little uptick in some movement there. People are either clearing houses off their books or acquiring a property for whatever they need to do to finish off the year financially. So we will see. Usually those are like investors, cash buyers a little bit of a Christmas gift bonus to us in the sales department. We get some extra holiday sales, which is nice.

Speaker 2: 5:11

Well, I have some interesting numbers also to take away from the 2239 single family houses. If you have a pool, that's 407 properties on the market.

Speaker 1: 5:23

Now this time of year, I don't think a pool would be too desirable, but I bet if you're showing rentals in February, march, april, people are giddy to get pools, especially in June, june, yeah, no, you, you. That's. The same thing happens in sales too. If you're shopping in that strong Vegas heat, you get yourself inside the air conditioning. You love it, but when you see water outside, you're like this is the one, right the contract. We're going to buy this one.

Speaker 2: 5:51

But I have an interesting number for you. So let's go back. Single family houses on the market 2239. Okay, now, if you say yes to pets, okay, so if I have a pet now, that number drops all the way down to 1105. Oh, okay. So landlords, when they say no to pets, they cut their market off by about 60 to 70%. So those that take pets get to market 100% of the market, versus cutting it out by 60, 70%.

Speaker 1: 6:21

Yeah, and people love their animals. They do, they do and so many of us have animals?

Speaker 2: 6:27

Well, and there's. There's a. There's a simple way to to take more pets. A lot of owners, you know, I always ask do you take pets? And they get very emotional no, the pets are going to destroy the house.

Speaker 1: 6:38

Okay, I was going to say. The mindset has to be that pets are going to be destructive to the property.

Speaker 2: 6:43

A lot of people think that way, but with proper property management and and the proper strategies you could, you can make it very profitable. So let's look at like this let's say there's there's two identical houses Okay, so there are you. Today you're, you're a self manager, you're doing it yourself, and then then there's me, there's the the so I woke up choosing violence, making bad decisions.

Speaker 1: 7:05

Got it Well, you.

Speaker 2: 7:06

but no, you're not doing it. You're saying, no, I'm not going to take pets. No pets going to live in my beautiful house.

Speaker 1: 7:12

Okay, so this is hypothetical because we're going to have a nursery.

Speaker 2: 7:16

Right. So here I I convince the owner to yeah, it's, it's if we do do pets. Here's some things that we can do for you. We're going to screen the pet. Okay, we have a system that screens pets, so we screen people. We also screen pets. Make sure they have their, their, their vaccinations and not biting out the neighborhood, Okay. And then the other thing is we make sure that they have renters insurance. Okay, we charge $500 per pet pet deposit, which is refundable, so if they treat the house well, they get the money back, and that we also charge a pet fee, but it's only $10. That's whether they have one pet or three pets.

Speaker 1: 7:57

Okay, and that's a fee, so it's one time it's not a pet rent Right, okay, it's.

Speaker 2: 8:02

Yeah, it is a pet rent.

Speaker 1: 8:04

It works that way. Yeah, so every month. Okay, so it's only $10.

Speaker 2: 8:08

And I don't have any problem with people paying them because they're just for finding a place to find pets, because you remember, half the market went away when we said yes to pets, right, okay, more than half, all right. So pets and what I like about pets is like you said, it's part of the family, agreed, okay Now. So let's go back to the scenario. So here says no pets and it takes you twice as long to get yours rented out. So if it's $2,000 a month, you've lost $4,000 upfront. Now, over here, we can set the pets and we're marking 100%. We get it rented right away.

Speaker 2: 8:43

Okay, so we didn't lose anything other than the short marketing time. Okay, now let's just say I always tell my owners list, don't go along with them, oh, everything's gonna be all right. You never know. We have to protect ourselves in case something does go wrong. So say it does. They do do some damage. We could cover it out of the deposits, okay. So now the owner didn't have any downtime. We fixed the house, the pet damage, along with doing the work to get it ready, ready condition and back on the market and get it re-rendered out. So, owner, didn't have any loss Over here. You had a loss upfront that you cannot recover from. Yeah, okay. So that's the difference you have to remember if you're going to rent your property out. This is a business, we're here to make money, so you have to take the emotions out of it and put what is practical, what makes sense, okay, and then that'll make you money by going with that. And a professional, a good property manager, can really explain and make that sense.

Speaker 1: 9:43

Is it a superior property manager?

Speaker 2: 9:45

Absolutely. I'm glad that you got that point.

Speaker 1: 9:48

I get. It's the only word I remembered Superior property. That's all I care about. That's right.

Speaker 2: 9:53

So the pets are very, very important. Also, there's some strategies on renter's insurance, because there's always, if you don't use the strategies, guess what happens? They cancel as soon as they get in the house. We have a strategy where they can't do that.

Speaker 1: 10:09

Okay, well, that's smart protecting that, because it is important for not only the renter, for their own personal belongings, to have their own stuff covered, because if something happened they're just out everything.

Speaker 2: 10:19

Well, if their dog goes and bites someone now they can give the renter's insurance information. The renter's insurance handles the claim. Yeah, so that's good.

Speaker 1: 10:26

Well, I think it's wise that property management advocate for getting pets in the property, not only because they're part of the family, but there are so many loopholes now because you cannot withhold, obviously, a service animal. There's no discrimination there, but people are using the emotional support animal as the loophole, and the reason I know this is because a town home that I had sold a few months ago was in an HOA common interest community here in our valley that would not allow pets unless they were service animal or emotional support. So when I looked into emotional support, it was easy peasy it was $65, 10 minutes online. You get a certificate. I went through the process. Isn't that like how renters would sort of finagle that you might as well take the pet rent and the deposits?

Speaker 2: 11:19

Well, that's a very good point so this is what happens with self managers because if self managers are doing themselves, then how do you know? So say, for instance, so that house, that hypothetical house we do, you're still in front of, and now we convince you to take pets. So I come along and says, okay, do you take pets? And in this case I'll say you say no. So you say no. No, Well, my dog is emotional support. Now what do you do?

Speaker 1: 11:46

Well, you have to take it right. Is it not part of the protected classes?

Speaker 2: 11:52

It is, but how do you know? My dog is a most of sport. Just because I say this, is that true. Well, just because it's off the internet, does that mean that it really is?

Speaker 1: 12:01

Okay, well, it was my understanding, in order to get some emotional support certification, you have to have a mental health professional. Say, tiana needs her pet so she can stay sane and doesn't go postal on people.

Speaker 2: 12:13

So here's a self manager. Are you an expert in that? Nope, and I'm not either. Okay, so I have to go through an outside source, just like if you're shown a house and it looks like there's roof leaking. Okay, you're gonna say, and I say, is it? You're gonna say, I don't know, but we'll get someone to check it out.

Speaker 1: 12:29

I don't know if that's water coming through the ceiling. Let's ask a professional.

Speaker 2: 12:34

Exactly exactly. Well, the same thing here. I'm gonna get a professional. So I have a system that I use, only that property managers use. Self managers that's my knowledge can't use and most of the property managers are not using that. It's called Pet Screener. So Pet Screener goes we have an account with them. They apply for the pet just like they would apply for our property. Okay so, and then if they say it's emotional support, they have to get into proper documents, and I find 60% to 70% they don't have the proper documents, which means it's not a bona fide, genuine emotional support, because getting off the internet is not a proper documentation. They have to get it from the doctor's office or the medical profession.

Speaker 1: 13:21

It doesn't necessarily come from a doctor, but a medical. That's right. That's right If they get the proper forms.

Speaker 2: 13:28

Now it is. Now I can't treat it as a pet, I can't get a pet deposit, but what we find happened is that with Pet Screener it takes a while, which means they don't have the documents. Now I come back to them. Just listen, tianan, your app case may have held up because of the emotional support, okay, and so you have a choice here, because we were keeping on the market until this is done. So if you want to go ahead and pay for the pet deposit, we can go ahead and move forward. Most will do that. Oh, absolutely Legally. Once it becomes emotional support, okay. If they do get the documents once they're living in the house not going to get the deposits back, have to do that by law.

Speaker 1: 14:10

Right.

Speaker 2: 14:11

And I hardly ever have to do that, which means they never had the documents and it was never really emotional support. Yeah, now we have as a pet, now I got the deposits, now I'm in a stronger position. That's what a professional brings to the table.

Speaker 1: 14:25

That is very, very wise, because I went through the process 65 bucks. I could go into a rental right now if I wanted to with my pets. That's right.

Speaker 2: 14:32

That's, right Now, the difference between. A lot of people get this one confused as well.

Speaker 2: 14:38

Service animal most of the port oh yeah, there are two different categories Agreed Service animals cover under ADA Americans with Disabilities Act. So it's a trained animal. That's right. If you're blind hooked up under German Shepherd, that's a service animal. Trained animal Normal support is authorized by HUD. It's only for most support. It's not trained. It's in the same category as service animals. You can't get the deposit but it's not really considered a pet at this particular time. But it's not a trained animal.

Speaker 1: 15:13

Agreed yeah. That I'm aware of.

Speaker 2: 15:16

That's why we need to make certain that we have the documents that, because otherwise it's better for us to get the security deposit. So I had a lady that had three multiple support and neither one could you prove that they were, so we got $500 pet deposit on each one. They were glad to do it.

Speaker 1: 15:33

Yeah, no, are you kidding? They're like your babies. You'd pay anything for them and yeah, I would yeah.

Speaker 2: 15:41

And so now another thing we also have to look at owners get this. Well, what if they do damage? Well, you have to look at it like this If, generally, when you have animals, they'll stay there longer, so if you have tenant turnover, it costs owners $2,000 to $5,000 to lose a tenant. So when a tenant moves out, get it ready, get it back on the market. It's going to cost you right around that If they stayed there for one, two, three, four, five, six years, that money stays in your pocket. Okay. So say, for instance, they're not the cleanest and you have to do after six years of paint job, you're head of the game. Yeah, because paint job is going to be $2,000 to $3,000, dependent on how big the house is, versus $2,000 to $5,000. In several years, you know you could be 15,000 or more. So if you've saved all that by taking the pet, taking the emotional support or whatever it is. But because they have a hard time finding the properties, people with pets then they do it without pets. Remember, we cut the market in half, so half the properties are not available for them to take for pets. So generally, stay there.

Speaker 2: 16:49

And as a property manager, I look for anchors. So anchor number one is kids go to schools. They don't want to take them back out of schools and move to different neighborhoods. So that's an anchor, that's a great one, okay. And then you have pets that's an anchor, yeah, okay. Now another one of our numbers is on furnish 287 are furnished. I don't like furnish because furniture is an anchor when you spend a week and put your furniture in the house and range and all. You don't want to do that anytime soon. So with your own furniture is better than a property unfurnished, and I find that there's not much of a differential between furnished and unfurnished in price.

Speaker 2: 17:33

So it makes more sense to me to go unfurnished. I have a lot of people think, oh, I got to keep my furniture in there. It's really not the best thing to do. I'd rather have theirs in there, because now they got to take it back out. And if it's in the summertime and it's 115 degree heat. They don't want to do that. Then I get it for another year, right, $2,000 to $5,000 and just put back in my owner's pocket.

Speaker 1: 17:55

Yeah, that is actually very wise. I never thought of having anchors, but you're absolutely right. If you're in a house and you're settled and I see it time and time again when I have to sell homes and they've got tenants in place like on a month to month and they've 30 day notice and we're selling this house and they've got to get out they feel like it's their home because they live there, their life is happening there, their animals are there, their children are going to school and then they know all the neighbors.

Speaker 2: 18:21

Yeah, this one's doing this and that one's doing that. Yeah, yeah, it's just that the silence settles.

Speaker 1: 18:26

Yeah, and that's what you want Absolutely, especially if you're going to have long-term renters, are better than renter turnover, for sure.

Speaker 2: 18:33

Well, I'd say a good sign of a well-managed property is when you drive down the neighborhood and you can't figure out which one's the red one.

Speaker 1: 18:39

Yeah, no, that's great. So what else do you do to protect your investors? Say, we have an investor, they bought a house. Thank you, I love being your agent. And now we turn it over to Mark and he is going to give you superior service and take care of that management for you. He's going to protect your assets. Mark, tell him how you do it.

Speaker 2: 18:59

Well, there's many things, but it starts with marketing first, because everybody says I want a good tenant. Of course we do, okay. So it starts with marketing. So, good, strong marketing is important. So we go down on the MLS professional photos, just like you would for a house for sale, and but also, while it goes on, zell, hoppads, trillia, it goes on about two dozen websites and then you know, and there's some high tech stuff there, but sometimes low tech stuff is the most important.

Speaker 2: 19:28

Yeah, when the phone rings, answer the darn thing. Okay, and we will answer the phone because there's someone over there that either wants to rent their house out or wants to rent the house. If we don't answer it, how are we going to do that? Yeah, the other thing we're low tech is short on the weekends. We'll answer the phone and get showings done on the weekends because when most people out there have time to go look at rental properties or also for sale either one, and so it's important that we're available, set those appointments up, get out there and show them the property. Okay. Now I'm a little different, because most of the agents that are shown rental properties, they open the door and let them in. That's the wrong way to do that. I get there before they do turn on all the lights, turn on the Cinefans, and the most important thing is, I'm sure you probably do this too.

Speaker 1: 20:19

I was going to say so far it just acts like you're showing a regular sale. That's what we do. We show up early, we make sure there's light in the room, everything is clean and neat, everything smells good and you go straight to the slider.

Speaker 2: 20:31

You open up the slider veins because if you don't, they're sitting there fuddling with it trying to open up the slider. So you got to open that up, open the door and you watch her go straight to the front door, straight out to the backyard. Every time, every time. So do you want that and and? But? I want the lights and the Cinefans. I want it to look good because you understand if you ever show them rental properties. You've run across this. The first time she showed smell like dogs. Second, I'll smell like cats. Third, house had a smell. We're not quite sure what it was, but it wasn't good. Now they come in. It looks good. The lights are on, stick and fork in them. They are done. They're going to do an application.

Speaker 1: 21:07

Okay, what about vetting those who drop in the application? So that's sort of that's.

Speaker 2: 21:12

The next important part is is looking them over, and there's a lot of things that go into this. So our criteria for us is minimum 600 FICA score three times the rent for the income and good, good rental history. Sounds simple enough, right.

Speaker 1: 21:29

Sounds simple enough, but there is a myriad of people that fall in those categories. Some are good renters, some are bad renters. How do you pick out the good ones?

Speaker 2: 21:37

The ones that are going to anger down and be there six years.

Speaker 1: 21:40

Pay your mortgage for you. Build that money.

Speaker 2: 21:42

Well, let's work another scenario to answer that question. Okay, okay, so we have two applicants, one's at 800 FICA score, the other one is 625. Okay, okay, so which one would you say? This is a trick question. Now which one say is the best, best tenant?

Speaker 1: 21:57

Okay, which one would you want to take? So you always go with the 800, right, somebody's got a proven track record of paying their bills on time.

Speaker 2: 22:04

Most are going to say this Right, and I say this one's wrong because you because you're already I know you're drooling because you can sell my house- in a year.

Speaker 1: 22:11

Right, I'm like 800. Why are we renting Absolutely Three times the deposit?

Speaker 2: 22:16

So I'm going to keep them for a year, which means now we're going to have the owner's biggest expense two to $5,000 for turnover expenses. Right, okay. Now this one over here can he buy a house? He can, but it's going to be it Not at 625.

Speaker 1: 22:30

There's some programs that started at 600, but he's struggling.

Speaker 2: 22:33

He's struggling. The chances are not very good.

Speaker 1: 22:35

Yeah, Not good unless that dude's got a ton of money to throw down at it.

Speaker 2: 22:39

That's right. So that means now, what's the chance of him fixing that in a year? Slim, that's right.

Speaker 1: 22:45

It happens all the time. It's a lot of work.

Speaker 2: 22:47

We're going to do it, and then they don't do it. And guess what? Now I got them for another year and another year, another year.

Speaker 1: 22:53

So then the perpetual rental cycle starts, all right, so send me all the applications that have 800 credit scores. I'll call them.

Speaker 2: 23:00

I'll be like listen, you're doing this all wrong. Let's make an investment. Well, you know what you hear there. Well, we want to rent first so we can see what part of the loss biggest you want to be. We want to see the valley, we want to know what's good and what's not.

Speaker 1: 23:13

But the thing is, people, when they do come to the valley, I always find that they get settled in an area and then they stay in that area, Even if they like other areas better. They get so used to their grocery store, their commute to work. If nothing's really too strenuous on them, they'll just stick around in that same area.

Speaker 2: 23:32

Well, here's another one that you hear a lot. We're not going to be here for a year. We really don't like Vegas right Six years later. Well, I guess we have to buy a house, because we're going to stay here.

Speaker 1: 23:45

We've decided.

Speaker 2: 23:45

Yeah, we've decided.

Speaker 1: 23:47

Yeah, well, it's hard to come to Vegas and not fall in love.

Speaker 2: 23:50

Well, something I think it has to grow on a little bit, because you know, especially if you come from back east, where are the trees? Okay, you know. So, yeah, the desert has its own beauty, but after a while the Vegas kind of grows on you after a while and then you can't get away.

Speaker 1: 24:07

Yeah, yeah, it gets its claws in you and then you are stuck in the valley, which is fine. We like you in the valley. We've grown so much in the past five years, 10 years. It feels like every time I think we're at the max, like, okay, we're a big city, let's stop. It just accumulates. And 5,000 people a month are moving into this city and that's been going on for three years. How nuts is that?

Speaker 2: 24:31

Actually I remember back even before that, in the early 2000s and the 90s, the same numbers you know. So we've been very consistent.

Speaker 1: 24:39

We've been very consistent. The only time we were was during the Great Recession. Yeah.

Speaker 2: 24:43

We had pulled back in. But you know, we recovered and the city is, you know, much, much different than when I got here in 83.

Speaker 1: 24:51

Yeah, I was here in 88 and it's so much different. Do you ever think we'd see an F1 track on this strip? Or football, yeah, yeah. Or hockey in the desert.

Speaker 2: 25:04

Yeah, yeah, it's amazing.

Speaker 1: 25:05

Yeah, it's been a lot of growth and the diversity in the economy. When I first got here was all gaming and hospitality period and our economy has changed so much. But enough about Vegas. When you get you come here, you get your rental. You think you're going to be here a year Guess what. You're sticking around, and when you do stick around, I'll sell your house. But until then, mark's going to rent you a house. Help his investors out. How has that been for you, for investors right now?

Speaker 2: 25:32

Because of the high interest rates. They're still, believe it or not, they're still investors coming in. I'm getting some calls and realtors that are working with investors and there's some ways to look at that. I always say that no matter when you get in, if you can get in, get in.

Speaker 1: 25:46

Yeah.

Speaker 2: 25:47

Now there's some arguments with the higher interest rates, whether it's going to cash flow or not. Well, okay, let's take that one on.

Speaker 1: 25:55

Whether it cash flows or not. Yeah, let's hear all about that.

Speaker 2: 25:57

Say, for instance, if you invest in other areas, say like the stock market, you really can't. It goes up, it goes down. If you put it in an IRA, then you're putting out how much money are you putting into that a year? Mind this, for my age is 7,500, and you don't get to use that until you're retired. Well, on investment properties, let's say that you're losing. Let's put a number, say $300 a month. Are you really losing that? And then argue that you're not because part of that's being applied towards the principal. You're bringing down the loan, right. So that part plus the fact that you also have good tax write-off, and if you hang on to it long enough, eventually the rents are going to go up. The prices that I think we have right now seem to be a little artificially low, because if I were to go buy a medium-sized house okay, a medium income or whatever the medium is what is my payment going to be the lowest I can get?

Speaker 1: 26:59

Okay, so if you're going to get a payment right now on a medium-sized home you are looking at, like the 32, depending upon your credit, to $3,600 a month.

Speaker 2: 27:09

Yeah, so you're looking around a $4,450,000 house, right? So, and even if you get, say, like a 350, you're probably a little south of 3,000, but you're around 28. So that means at certain point the rent will have to go up because as more and more people have those notes okay and they turn around and rent them out, the numbers will make that it just by sure numbers it'll make those rental rents go up. So if you go in now you get to enjoy that growth and we can see that. You know it's even with interest rates going up. Prices are not really going down that much and eventually at certain point because we always have this up and down stuff and in the sales and rentals, if you ride through it long enough, it'll go up.

Speaker 2: 28:02

Well, good example is on our house. We bought $1,999. I can now rent that for $2,750. The note is only $1,507 on that one. My new house is $1,600. So it pays not only for the old house for itself but also for my newer house. So my out of pocket payment is really, really low for my new house.

Speaker 1: 28:24

It's always better to buy in the past. Where's my time machine?

Speaker 2: 28:28

Well, the time machine is now. Start it now get a house. Hold on to it with your teeth if you have to, but hold on to it. Of course, this goes against what realtors want. They want you to all sell the house.

Speaker 1: 28:40

I know I am a realtor that once you get a property, hold it, hold on to it. We'll get you another property. That's right Get another one.

Speaker 2: 28:48

And the way to do that is, first of all, I would say the best house to get is rentals a simple single story house, 13 to 1,500 square feet Because single stories more people can live into that People from California who live in apartments. They get to drink, they get the yard, they get the garage. So it's very desirable and it's that affordable price for them. So that's good. Rentals will always be good. So now, if it's only, say, like 1200 square feet, you're going to grow up at a certain point. So now you need a bigger house.

Speaker 2: 29:26

So Tiana gets you a bigger house, we rent out the old one and then eventually we have more kids. Now we need we got to go from a three to a four bedroom. So we rent the second house out. Now we got two grown for it. So it's total three the one you're living in you just got, and then the second one and the first one and the longer you, if you can keep doing that through the years and get to three, four or five. I've seen Air Force people do that and by the time they retired they got some nice cash flow coming in. Thing like this if you hold on for 30 years. So when you're 50, 60, and it's equivalent of making $2,000 a month in the future, okay, so say nothing changes, nothing goes up. Two times five $10,000 a month, that's a pretty good income.

Speaker 1: 30:15

Yeah, yeah, it is. So do you see that single family I'm assuming single family homes rent better than condos or town homes?

Speaker 2: 30:23

Right now condos and townhouses do quite fine and a lot of investors are doing those. The only problem that I see with them is just the HOAs are real high.

Speaker 1: 30:32

The HOAs are high and a lot of them.

Speaker 2: 30:34

So you're two to $250. So remember that's part of the rent you're collecting that goes towards HOA. That doesn't apply towards bringing down the rent or paying taxes or anything else. It's just paying the HOA. But if that's the only way to get a property, then it's not a bad way to go.

Speaker 1: 30:53

It's a good way to start.

Speaker 2: 30:54

It is a good way to start. So even one bedroom, I do find with those 10 years ago that was a kiss of death. You couldn't get those things away.

Speaker 2: 31:02

But, rents have gone up quite a bit, that even with the settling down they still rent quite well. Okay, cuz you know you get down, there's less and less. So you get down to say $1600 a month. There's less available 15 less, 14 less, yeah, first, and so on. Okay, so I have to. I have a Apartment as a duplex. They're not even 500 square feet a piece and we've went from 850 all the way to just right around the thousand dollars a piece now, and this is a north-east Vegas, the old part, okay, and we're getting that now. Why? Because there's nothing else available in that price range, you know, and these happen to have a little bit of a backyard so they gather pets and stuff, so it works. But that kind of tells you what the market is for rattles.

Speaker 1: 31:50

Yeah, and there's gonna be opportunities for people to More so across the country than in Vegas, have the opportunity to buy multifamily homes because there's a new, I guess, change in FHA and the market starting is it November 18th.

Speaker 1: 32:08

Yeah that you can get into a multifamily with that 5% down. They take the rent into consideration for the other units in there, which is great for other parts of the country. We really don't have a bunch of duplexes or fourplexes or anything in the valley that Well, I was just about to say that have been built Newer than the 90s. That's all 50, 70s, 80s stuff, yeah, and so they are in older parts of the neighborhood, the older parts of the town. But that is gonna be an awesome tool. So if anybody's looking to buy A duplex or fourplex and want to use that new program, give me a call and give you all the details. I would.

Speaker 2: 32:54

Older parts of town is really Not bad anymore because of the price of real estate is is now making some of those areas being resurrected.

Speaker 1: 33:04

We have so many areas being resurrected in the valley we have like that whole huntridge corridor that is together the arts district Over in Winchester. There's a lot of stuff going on. It seems that people are coming from other parts of the valley and they're taking on older properties and Imagining them and fixing them up, as well, as the city itself has so many projects going on to develop and redefine Older parts of our valley which is awesome yeah.

Speaker 2: 33:35

So there's, if you cherry pick it right, there are some, some areas that you can make work. Yeah, so you'd have to look. I'm very careful, but cherry picking because some of them it's gonna take a while for those come up. I would say yeah yeah.

Speaker 2: 33:49

I've gotten an assignment like you see, gang for graffiti, and it didn't get any better. It's the further. I drove through there and I talked the owner out of it. So I don't think this can be a good one for you. Not the one, huh. Well, in some of these areas too, you have the slum or mentality, so we're gonna collect all the wits we can, but but the lease amount into it, and I think that's the wrong way to treat the tenants. I think I agree, treat them Well, because you never you know, you always look at the rental properties pay me now or pay me later. Well, if you pay me now, get the work done, the paint job, that the, the flooring, things like that. If we hold it off and we have lost income, lost rents, well, you're paying me later, but we're not the same amount of money, but we're not getting higher price points.

Speaker 2: 34:34

We're not getting did the work done. We're not. Still needs to paint, still needs the flooring, still needs the other work. Just rent it without that. That's what they're doing.

Speaker 1: 34:42

Oh, that's awful. That's awful. Luckily, the investors that I've worked with have come in and Sort of rejuvenated the properties, made sure they're livable condition and put tenants in at higher price points, so that's awesome.

Speaker 2: 34:56

They get a higher price points and a better tenant. The tenant is gonna take good care of the property. When it's something that they want to live in, didn't gonna take care of it. If you run a property nobody wants to live in, you only get the person that. That's the only choice he has left is or he or she. Okay, it's probably not the desirable. Yeah, you don't want that desperation. It's gonna take a lot of time on your day dealing with that. Yeah, the wrong tenant will really take a lot of your time and make you wish, geez, I never would should have gone into rentals now. We just got the wrong tenant. Maybe we had the wrong property, but the right property, the right, right management. Then Then you get the right noise for rental properties. I'm gonna I'm going to show you what, what a good well rental property sounds like.

Speaker 1: 35:40

Ready here we go Okay, make it quick, wrap it up when you're done. It'd be real quick one two, three, four. One, two, three, four, that was quick.

Speaker 2: 35:50

So what I want to hear? Nothing, nothing. But what a nice and quiet. And we have system set up. The way you can accomplish that I know, and you're sure like that.

Speaker 1: 35:59

That's a good way to end it, because that isn't the importance. If you're gonna hire a property manager, they are there to protect your investment. You want to make sure that they're doing their job, and I've known mark for years and I know that you do a great job. Everybody we've ever had that has property management with you really is Appreciate the property and the care that you've taken care of. The property form. So, mark, if somebody wants to get a hold of you, how do they get a hold of you?

Speaker 2: 36:22

Just call me myself of 702-278-4781. Yeah, as I said, we actually answered the phone. Yes. If I miss you, I will call you back.

Speaker 1: 36:33

Yeah, that's a fact. I've never called you and you haven't answered.

Speaker 2: 36:37

So I know tonight.

Speaker 1: 36:38

All right, vegas. Thanks for tuning in to Vegas real tea check. I'm Tiana Carol. You can give me a call or shoot me a text if you have any questions about the Las Vegas real estate market at 702-379-9948. Make sure you like, share and subscribe to the channel if you're finding value in the information, because we post each week on Thursdays. Until next week, vegas, have a great day. Bye you.