Las Vegas market?

[kev374]

A friend who bought a Las Vegas 1 bd 665sqft condo for $145,000 last year now has a ZEstimate of $122,000. The funny thing is that he is renting it out for $850/month which almost covers his mortgage (he bought for 3% down, 30yr fixed at 5.5%)

From what I’ve read Las Vegas is ground zero for future declines but if rents are already almost in line with cost of owning then how is it a bubble??

[Doofrat]

You’ve got a lot of people making close to minimum wage plus tips in Vegas, so it shouldn’t be hard to find somebody who can afford $850/ month for a 1 bd and who can’t afford to buy or doesn’t plan on staying in Vegas for long. On the other hand, finding a buyer for that condo might be a problem.

[Doofrat]

You’ve got a lot of people making close to minimum wage plus tips in Vegas, so it shouldn’t be hard to find somebody who can afford $850/ month for a 1 bd and who can’t afford to buy or doesn’t plan on staying in Vegas for long. On the other hand, finding a buyer for that condo might be a problem.

[Doofrat]

You’ve got a lot of people making close to minimum wage plus tips in Vegas, so it shouldn’t be hard to find somebody who can afford $850/ month for a 1 bd and who can’t afford to buy or doesn’t plan on staying in Vegas for long. On the other hand, finding a buyer for that condo might be a problem.

[Doofrat]

You’ve got a lot of people making close to minimum wage plus tips in Vegas, so it shouldn’t be hard to find somebody who can afford $850/ month for a 1 bd and who can’t afford to buy or doesn’t plan on staying in Vegas for long. On the other hand, finding a buyer for that condo might be a problem.

[Doofrat]

You’ve got a lot of people making close to minimum wage plus tips in Vegas, so it shouldn’t be hard to find somebody who can afford $850/ month for a 1 bd and who can’t afford to buy or doesn’t plan on staying in Vegas for long. On the other hand, finding a buyer for that condo might be a problem.

[surveyor]

using rough numbers….

My calculations show that the property generates a negative cash flow of around $4600. While the $850 can probably cover the mortgage itself, it does not cover the HOA, property taxes, insurance.

The tax depreciation for the property helps alleviate the bleeding somewhat by the owner being able to get back around $3.5k in taxes, but that still leaves the owner with a negative cash flow of around $1k.

At the cost of $122k, the numbers look better, allowing the property to break even (when you take the taxes into consideration).

[surveyor]

using rough numbers….

My calculations show that the property generates a negative cash flow of around $4600. While the $850 can probably cover the mortgage itself, it does not cover the HOA, property taxes, insurance.

The tax depreciation for the property helps alleviate the bleeding somewhat by the owner being able to get back around $3.5k in taxes, but that still leaves the owner with a negative cash flow of around $1k.

At the cost of $122k, the numbers look better, allowing the property to break even (when you take the taxes into consideration).

[surveyor]

using rough numbers….

My calculations show that the property generates a negative cash flow of around $4600. While the $850 can probably cover the mortgage itself, it does not cover the HOA, property taxes, insurance.

The tax depreciation for the property helps alleviate the bleeding somewhat by the owner being able to get back around $3.5k in taxes, but that still leaves the owner with a negative cash flow of around $1k.

At the cost of $122k, the numbers look better, allowing the property to break even (when you take the taxes into consideration).

[surveyor]

using rough numbers….

My calculations show that the property generates a negative cash flow of around $4600. While the $850 can probably cover the mortgage itself, it does not cover the HOA, property taxes, insurance.

The tax depreciation for the property helps alleviate the bleeding somewhat by the owner being able to get back around $3.5k in taxes, but that still leaves the owner with a negative cash flow of around $1k.

At the cost of $122k, the numbers look better, allowing the property to break even (when you take the taxes into consideration).

[surveyor]

using rough numbers….

My calculations show that the property generates a negative cash flow of around $4600. While the $850 can probably cover the mortgage itself, it does not cover the HOA, property taxes, insurance.

The tax depreciation for the property helps alleviate the bleeding somewhat by the owner being able to get back around $3.5k in taxes, but that still leaves the owner with a negative cash flow of around $1k.

At the cost of $122k, the numbers look better, allowing the property to break even (when you take the taxes into consideration).

[guitar187]

“then how is it a bubble??”

Because we do not use a single one bedroom apartment to derive value. And if I give you the answer, you won’t learn anything. This site is definitely a good place to start but you’ll have to do the research yourself 😉

[guitar187]

“then how is it a bubble??”

Because we do not use a single one bedroom apartment to derive value. And if I give you the answer, you won’t learn anything. This site is definitely a good place to start but you’ll have to do the research yourself 😉

[guitar187]

“then how is it a bubble??”

Because we do not use a single one bedroom apartment to derive value. And if I give you the answer, you won’t learn anything. This site is definitely a good place to start but you’ll have to do the research yourself 😉

[guitar187]

“then how is it a bubble??”

Because we do not use a single one bedroom apartment to derive value. And if I give you the answer, you won’t learn anything. This site is definitely a good place to start but you’ll have to do the research yourself 😉

[Author]

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