Home › Forums › Financial Markets/Economics › Investing in multi-family – Looking for a mentor / advice.
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August 24, 2018 at 11:19 AM #810766August 24, 2018 at 1:39 PM #810770saiineParticipant
Thanks Flyer,
Do you care to share any additional words of wisdom specific to Vegas? Trying to learn all I can and it sounds like you have experience.
Thanks!
[quote=FlyerInHi]Saline, be careful of the “mentor”. Nobody does it for free.
I own properties in Vegas. It’s not like San Diego at all. Vegas is a very transient city with a lot of riff raff. When you buy a cheap property, be careful who you rent to.
Avoid North Las Vegas and North East of Downtown and areas near the East beltway.[/quote]
August 24, 2018 at 2:08 PM #810771FlyerInHiGuestSo hard to generalize.
I am bullish on Vegas, long term. Vegas is trying to diversify and be more like Phoenix + gambling + conventions.But we are due for a recession and Vegas is vulnerable to a downturn in discretionary spending; so you might be able to buy something at the next bottom. Rents are high now but there’s a lot of new construction so a recession may see rent drops.
Next recession, I will be buying in Riverside, San Bernardino, Moreno Valley, closer to San Diego.
August 25, 2018 at 11:15 PM #810776DataAgentParticipantI like Las Vegas too. It has huge growth potential.
However, the water situation in Las Vegas seems quite bleak. Millions of people (and growing) depend on Lake Mead for water. The ‘third straw’ could literally drain Lake Mead like a bathtub. How long till that bathtub empties?
August 26, 2018 at 9:04 AM #810777FlyerInHiGuest[quote=DataAgent]I like Las Vegas too. It has huge growth potential.
However, the water situation in Las Vegas seems quite bleak. Millions of people (and growing) depend on Lake Mead for water. The ‘third straw’ could literally drain Lake Mead like a bathtub. How long till that bathtub empties?[/quote]
The third straw at the bottom of lake mead actually gives Vegas priority over the water ahead of California, Arizona and Mexico. It does not draw more water but it’s insurance iin case water levels continue to drop.
BLM will auction more land in the south 15 almost all the way to Primm. So sprawl continues unabated. A lot of middle to high end housing. No affordable housing so rents continue to rise at the bottom.
Even UNLV will build market rate “luxury” housing on its land.August 26, 2018 at 12:36 PM #810778phasterParticipant[quote=FlyerInHi][quote=DataAgent]I like Las Vegas too. It has huge growth potential.
However, the water situation in Las Vegas seems quite bleak. Millions of people (and growing) depend on Lake Mead for water. The ‘third straw’ could literally drain Lake Mead like a bathtub. How long till that bathtub empties?[/quote]
The third straw at the bottom of lake mead actually gives Vegas priority over the water ahead of California, Arizona and Mexico. It does not draw more water but it’s insurance iin case water levels continue to drop.
BLM will auction more land in the south 15 almost all the way to Primm. So sprawl continues unabated. A lot of middle to high end housing. No affordable housing so rents continue to rise at the bottom.
Even UNLV will build market rate “luxury” housing on its land.[/quote]
I’ve been following the topic of climate change ever since I was a student at UCSD back in the late 80’s and early 90’s where I learned drought in the region can last longer than a human life time AND that there have been two long term drought events that happened in the past 1200 years,… which in geological time, is akin to a blink of an eye
http://www.TinyURL.com/AncientDroughts
[quote]
The American Southwest: Are We Running Dry?[/quote]
So its not out of the realm of possibility that another century long drought happens AND the key indicator to watch is the water level and “trend” line
http://mead.uslakes.info/Level/
[quote]
Falling Lake Mead Water Levels Prompt Detente in Arizona FeudThe Colorado River, which supplies water to 40 million people from Denver to Los Angeles, has been gripped in the driest 19-year period on record, according to officials from the Bureau of Reclamation, a multistate agency that manages water and power in the West. With low snowpack and warm conditions again, runoff from the river this year is only about 40% of the long-term average, prompting renewed concerns over the water level in Lake Mead.
The risk of the reservoir falling below 1,025 feet by the year 2026—a level once thought unthinkable—has risen to 40%, according to new estimates by the Bureau of Reclamation. Because the lake is funnel shaped, water officials worry it could decline even faster once it gets that low—triggering even bigger cutbacks.
Arizona, Nevada and California in 2007 had agreed to undertake a series of cuts from the river, under Interior Department guidelines for when Lake Mead dipped below 1,075 feet. For example, Arizona, which has the lowest water rights on the system, agreed to curtail roughly one third its annual use, or 320,000 acre feet. (An acre foot is the amount of water used by an average family of five in a year.)
The intensity of heat and drought since then has prompted the states to prepare the new drought plans, to leave more of their water in the reservoir. Arizona, for example, would under the new plan instead reduce its use by 512,000 acre feet.
“It’s hard to understate how big of a haircut that is,” said Drew Beckwith, water policy manager at Western Resource Advocates, an environmental advocacy group in Boulder, Colo. “The challenge for Arizona is who within Arizona is going to be taking the cuts.”
WRT the third straw
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…People who worry about those issues sometimes focus their scorn on Las Vegas, which appears culpable mainly because, of all the cities that draw water from the river, it lies the closest to its banks. But, in actuality, Nevada was so thinly populated when the river was divided up that its allotment is very small—just two per cent of the total—and it actually takes less than that, primarily because Las Vegas has some of most stringent water-conservation regulations in the country.…Just as proximity makes people think that Las Vegas is the principal cause of the decline of Lake Mead, it also makes them think that any further decline in the lake will be a problem mainly, or even only, for Las Vegas. But that isn’t true, either. When the pumping plant for the third straw is completed, Nevada will be the only lower-basin user with the infrastructure required to draw lake water from below the level known as “dead pool”—roughly nine hundred feet above sea level, the elevation of the lowest openings in the four intake towers on the upstream side of Hoover Dam. Approximately a quarter of the water remaining in Mead is below that dead-pool line and, therefore, untappable by users below the dam. The chance that the lake will drop that far anytime soon is small—it’s more than a hundred and eighty feet below the current surface—but in 1998 few people thought the lake would ever drop to where it is today.
“If Mead falls to nine hundred,” Mulroy continued, “nothing goes downstream from Hoover Dam.” That would mean that the river’s two largest users, Arizona and California, would get nothing, and some of the most productive agricultural land in the country would turn back into desert. “But Southern Nevada will still be taking water out of the lake, because the new intake is at eight-sixty”—eight hundred and sixty feet above sea level, forty feet below the lowest Hoover intake.
https://www.newyorker.com/tech/elements/where-the-water-goes
[/quote]My own reading of the tea leaves is a perfect storm is brewing, so given climate change,…
https://www.piggington.com/climate_change_one_biggest_crises_facing_humanity
and fiscal mismanagement,…
http://www.TinyURL.com/InvestorWarning
its going to be interesting to see what ends the party
August 26, 2018 at 1:38 PM #810779FlyerInHiGuestCan we not build a big pipeline to bring water from the Mississippi or Canada? Something on a Hoover dam scale, but proportionately bigger in relation to the size of the current economy.
Seems to me Arizona is most vulnerable to a long term drought. I have not studied the issue, so I’m not sure.
Personally, I think agriculture is the culprit. We should just import our food from places/countries with better growing climates. Water should be allocate economically to the highest GDP producing cities first. Feed the golden geese.
August 26, 2018 at 2:41 PM #810780FlyerInHiGuestInvestors are really bidding up multi family properties in Vegas. $100k per unit for old complex. The new ones are going close to $300k per unit.
California investors buy Las Vegas apartment complex for $50M
August 27, 2018 at 9:41 PM #810781DataAgentParticipant[quote=FlyerInHi]Can we not build a big pipeline to bring water from the Mississippi or Canada? Something on a Hoover dam scale, but proportionately bigger in relation to the size of the current economy.
[/quote]The third straw cost almost $1B for a 3 mile pipeline. Las Vegas is about 1500 miles from the Mississippi River. Forget the cost, who would have the authority to build such a pipeline across 4 states?
Thinking big, why not build a pipeline to the CA central coast and grab all the Pacific Ocean water you could get? Just add a couple of desal plants and NV would never have to worry about water again.
August 27, 2018 at 11:13 PM #810783FlyerInHiGuest[quote=DataAgent][quote=FlyerInHi]Can we not build a big pipeline to bring water from the Mississippi or Canada? Something on a Hoover dam scale, but proportionately bigger in relation to the size of the current economy.
[/quote]The third straw cost almost $1B for a 3 mile pipeline. Las Vegas is about 1500 miles from the Mississippi River. Forget the cost, who would have the authority to build such a pipeline across 4 states?
Thinking big, why not build a pipeline to the CA central coast and grab all the Pacific Ocean water you could get? Just add a couple of desal plants and NV would never have to worry about water again.[/quote]
That’s what the federal government did with Hoover Dam and projects like the Tennessee valley authority. Either that, or let the places in bad geographical locations die off naturally.
August 29, 2018 at 9:44 AM #810793gzzParticipantBig Ag is less than 5% of the economy in Cal and the SW, but uses 80% of the water, which it pays close to nothing for.
If there is ever a serious drought, the majority living in metro areas will claim that water. As they should, because it is a public resource they are willing to pay for more money for.
For this reason, Vegas will never run out of water needed for its service-economy growth.
August 29, 2018 at 1:58 PM #810794MyriadParticipantThe state should focus on building a massive water distribution and storage network before wasting money on LA-SF HSR. Whereas the HSR only really benefits city dwellers, water is needed by pretty much everyone, especially inland farmers.
One could make the argument that agriculture that comes from CA (quantity & value), having enough water for farming is of national importance.https://www.sfchronicle.com/news/article/California-s-two-tunnel-Delta-project-is-back-12823416.php
August 31, 2018 at 10:29 AM #810796FlyerInHiGuestUrban dwellers produce more GDP per capita.
If agriculture is of national importance, the federal government can foot the bill.
Plus, it’s not an either or choice. We can do everything all at once.
Myriad, you are not consistent. On the one hand you argue the HSR should be market driven and sustainable by user fees. So why not have all users of water pay the same price per unit of water? The revenue could then be used to build infrastructure.
August 31, 2018 at 3:58 PM #810810phasterParticipant[quote=DataAgent][quote=FlyerInHi]Can we not build a big pipeline to bring water from the Mississippi or Canada? Something on a Hoover dam scale, but proportionately bigger in relation to the size of the current economy.
[/quote]The third straw cost almost $1B for a 3 mile pipeline. Las Vegas is about 1500 miles from the Mississippi River. Forget the cost, who would have the authority to build such a pipeline across 4 states?
Thinking big, why not build a pipeline to the CA central coast and grab all the Pacific Ocean water you could get? Just add a couple of desal plants and NV would never have to worry about water again.[/quote]
[quote=Myriad]The state should focus on building a massive water distribution and storage network before wasting money on LA-SF HSR. Whereas the HSR only really benefits city dwellers, water is needed by pretty much everyone, especially inland farmers.
One could make the argument that agriculture that comes from CA (quantity & value), having enough water for farming is of national importance.
https://www.sfchronicle.com/news/article/California-s-two-tunnel-Delta-project-is-back-12823416.php
[/quote]BINGO!… the reason its a dumb idea to build a water way that goes up and over the continental divide is,… financing cost($) and basic physics (i.e. real e$tate cost$ once a route is selected, amount of concrete needed, power requirements to pump water once the structure is built, etc.)
in general the BIGGEST problem w/ basic infrastructure is its boring, in other words people only miss it when its gone,… on the other hand a fancy choo choo train is something that politicians and career bureaucrats can do a ribbon cutting ceremony w/ joe six pack and the family
FYI actually threw in some money into a start up a few years ago that was going to do a water project in the central valley,… unfortunately the preferred stock offering didn’t raise the min required so my money was refunded,…
[quote]
Solar Thermal Desalination Now Underway in Water-hungry California…The controversial Carlsbad desalination project’s latest projected cost is now $1 billion.
It will suck in 100 million gallons of San Diego’s seawater a day and force it through a series of filters to produce 50 million gallons of water a day using high-pressure reverse osmosis.
A modest solar thermal desalination alternative now quietly undergoing permitting inland would produce 5 million gallons of water, about one tenth of that of Carlsbad, but at a much lower cost of just $30 million, using a solar distillation process.
actually thought if the pilot solar desal plant worked in the central valley, the next logical steps would be solar desal in the imperial valley along w/ perhaps a inlet from the sea of cortez going toward the salon sea area (which is a natural “sink”)
[quote]
How water from Mexico can save the Salton Sea…Filling the Salton Sea with imported water from Mexico is not a new idea. The proposal has been around in one form or another since the 1970s. While the idea has a track record of inspiring excitement, support hasn’t translated to funding.
Previous studies – including by the U.S. Bureau of Reclamation and the Salton Sea Authority – deemed it too costly to pull off.
But the tides have changed.
At the beginning of 2018 the Imperial Irrigation District is set to cut off flow of water from Colorado River into the Salton Sea, as required by the 2003 Quantification Settlement Agreement. Once that happens, the lake’s decline is expected to accelerate.
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