When I lived in San Diego, I used to go to Vegas quite a bit for fun & relaxation. I came very close to buying a vacation home in Henderson (suburb of Las Vegas) back in 2001 but talked myself out of it. I have several friends who still own vacation homes there. All of them bought before the big run-up in pricing that took place in Vegas during the bubble. I just did a quick search on Realtor.com for Henderson and between $150k-$200k and there are a lot of homes for sale in that range that are a lot nicer than the one you posted.
Does your friend know Las Vegas well and if so, does she specifically want to live in Las Vegas? Henderson has been the area for the last 10+ years where people would prefer to live and it’s only 20 minutes from “The Strip” and is a much cleaner and better developed area than the majority of Las Vegas where $200k houses are concerned.
BTW: Las Vegas has a gazillion homes for sales because they also had a huge housing bubble. It will probably take them much longer than SoCal to recover from it. Many of the homes for sale are empty and your friend could have her choice of homes for a huge discount over what they were selling for a couple of years ago. Here’s a site that tracks Las Vegas sales & inventory:
http://bubbletracking.blogspot.com/2008/01/las-vegas-inventory-sales-2008.html
Just my two cents.