mortgages Las Vegas

 

How to Invest in Las Vegas Real Estate 

Investing in real estate can be a great way to diversify your portfolio. It’s relatively easy to tap into the market, and your investments may even provide some additional income. If you have been thinking of investing in Las Vegas real estate, here are some helpful tips to get started. 

jumbo renovation loan Las Vegas

 

 

Why Choose Las Vegas? 

Before investing in real estate anywhere, you want to know beforehand that you are making a wise investment. Whether you already live in Las Vegas and want to branch out into real estate investing or you’re unfamiliar with the city, it helps to know what makes the city an attractive choice for investors. 

For starters, Las Vegas is Nevada’s largest city. It has a generally mild climate with many sunny days each year. The city’s infrastructure is ranked #1 by US News and World Report, and it has award-winning public transportation. The city’s economy is also supported by many key industries, including defense, manufacturing, and aerospace. 

 

 

 

The Las Vegas Investment Market 

Although Las Vegas has many attractive qualities, it’s also important to look at its investment landscape before deciding whether or not to invest in the local real estate market. In Las Vegas, you should consider the following factors: 

  • Economic diversity
  • High rental demand
  • Desirable location 

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Las Vegas is home to many diverse and booming industries. It also has favorable taxes for many sectors. The city’s hospitality and leisure sector employ the most people at a total of 28.3%. Trade, transportation, and utilities are also strong industries that comprise 17.4% of the city’s employment. Las Vegas also stands out for its rich natural resources that drive business growth. 

Over the past ten years, demand for home rentals has skyrocketed in Las Vegas. By the end of November 2020, the average rental rate in Las Vegas was $1,420, a 5% year-over-year increase. Occupancy rates also rose to 96.8%. 

Lastly, it’s hard to beat the fact that Las Vegas is a desirable location, which adds to both renters and investors’ appeal. Las Vegas is frequented by millions of visitors each year, with the tourism industry ranking in about $34.5 billion as a result. 

 

What to Know About Real Estate Investment Trusts (REITs)

Once you’ve decided that Las Vegas is an excellent place to invest in real estate, you’ll want to know how to go about the investment process. One option is called a Real Estate Investment Trust (REIT). REITs are essentially entities that own commercial properties, including hotels, apartments, office buildings, retail spaces, and more. They tend to generate high dividends, which makes them a desirable investment option for retirees. Investors sometimes choose to reinvest their dividends to further their investment growth. Keep in mind that there are two types of REITs available, which are equity REITs and mortgage REITs. Equity REITs own buildings, while mortgage REITs produce income from financing real estate through mortgages Las Vegas

 

Invest in Rental Properties 

Investing in rental properties may take a bit more work than some other real estate investment options. Still, you might also find a rental property investment to be a lucrative and consistent way to generate extra cash. There are two types of investment options available for rental properties, which are long-term and short-term rentals. Short-term rentals are designed for tenants who may stay as little as one night, such as an AirBnB or VRBO rental. In contrast, long-term rentals are intended to be rented out for 12 months or more. You can purchase a single-family home or a multi-family home that you rent out to tenants for this investment strategy. If you’re choosing the long-term rental plan, you’ll want to ensure that you have reliable tenants. 

 

jumbo renovation loan Las VegasFlip a Property 

Rather than buying a home to live in, you can also flip properties. If you decide to flip a property, be aware that there’s usually a considerable amount of work involved. If you go this route, it’s a good idea to talk to a mortgage lender to determine your best options for financing the renovations. One is to get a jumbo renovation loan Las Vegas, which covers necessary repairs and renovations such as swimming pools, outdoor areas, the bathrooms, kitchen, attic, or basement. An adjustable rate mortgage Las Vegas is also an option to finance repairs, especially if you will be flipping and selling the home in a short period. Before getting started flipping properties, keep in mind that considerable planning and preparation are required, including securing all the necessary permits first for renovations. 

 

Rent a Room

If you are hesitant to dive head-first into real estate investing, a good way to start is renting a room. It’s easy to advertise a room in your own home on a site such as Airbnb. This approach means that you don’t have to worry about long-term rentals, and if you list on an accredited site like Airbnb, you will have the advantage of advance screening for your guests and protection from damages. 

There are many options for investing in Las Vegas real estate, ranging from dipping your toes in the water with renting out a room to undertaking a significant project such as flipping properties or investing in long-term rental arrangements. If you have questions about how to get started with real estate investing, or if you want to know the best approach for your situation and goals, be sure to contact an experienced loan officer today.