Is the Las Vegas Real Estate Market Good for Investment Properties?

Las Vegas ranks as the #1 city for real estate in the US for 2018!

Thanks to the new and improved developments in the city, the Las Vegas real estate market is getting closer to long-term stability. There has never been a more perfect time to buy investment properties in Las Vegas than right now. Not only is the Las Vegas rental market WONDERFUL and PROFITABLE, it is taking its new real estate market trend all the way to 2021!

Say goodbye to the past

In the past (well the year 2008 to be exact), Las Vegas was not considered as one of the best places to invest in real estate. The number of foreclosed homes was unreal and the rate of unemployment kept increasing. Rising real estate prices came to a sudden drop and 70% of mortgages went downhill. Many people were leaving and Las Vegas lost around 500,000 residents! It was a gloomy time for Las Vegas and no one knew what the future for the Las Vegas real estate market was.

Say hello to the bright future

It’s unbelievable how drastically high the Las Vegas real estate market took a leap! The unemployment rate is at its lowest due to the addition of 10,000 new job opportunities. The population growth is increasing, making the demand for investment properties even higher. With all the good happening to the Las Vegas real estate market, property investors need to make smart investment decisions and start buying investment properties.

Real estate investors who are always on the search for the next best place to invest need to follow up with real estate market trends in order to find the best investment properties. There are a lot of new trends going on in Las Vegas real estate. Let’s take a quick look at them.

Las Vegas Real Estate Market Trends:

1. Impressive appreciation

According to Zillow.com, the median property price in Las Vegas’s real estate market has increased 16.6 % in the last year alone! This is more than double the national average median home value. The Las Vegas real estate market is becoming well known for its impressive real estate appreciation of home values. The good news is that experts say this trend will continue rising in coming years! Property investors thinking of buying traditional Las Vegas investment properties and renting them out for long-term tenants should head on to Sin City!

2. Cheap investment properties

Smart real estate investors use distressed investment properties to their advantage and turn them into profitable investment properties. A popular 2018 trend in the Las Vegas real estate market is that there are still plenty of distressed investment properties. These properties are at some stage of foreclosure, either default, auction or bank-owned. Taking these cheap investment properties and flipping them to generate positive cash flow and a high return on investment is a smart investment strategy.

If you are interested in this type of investment strategy and want to learn more about flipping houses, then read this article: How to Fix and Flip Foreclosed Homes.

3. High demand and high rental income

As more and more residents swarm into Las Vegas, the demand for investment properties rapidly increases. Why is Sin City attracting so many people? People are heading towards Las Vegas due to growing job opportunities, low unemployment rates, low interest rates and considerable affordability. Real estate investors who are looking for areas with high occupancy rates and higher property prices should seize the moment and invest in Las Vegas real estate.

Of course with high demand for investment properties, real estate investors are able to charge tenants more and as a result, increase their rental income.

4. Low property taxes

Compared to some of the top US housing markets, Las Vegas has very low investment property taxes. This is a very appealing trend for many property investors because they can save cash on taxes. In Las Vegas’s rental market there is no personal income tax. Property taxes are 70% cheaper than property taxes in other real estate markets.

5. Airbnb Las Vegas

Las Vegas has so many different kinds of attractions that there is no off-season when it comes to tourism. Every year, millions of visitors come to explore the beautiful, breath-taking sights of Las Vegas. Investors who are interested in investing in short-term rentals and renting them out through home rental websites such as Airbnb should consider Las Vegas.

As you can see, Las Vegas is hot this year and is going to stay hot for upcoming years as well. Now is the time to start searching for investment properties in this city. I’ve provided for you the best places to buy investments properties in Las Vegas according to Mashvisor’s rental property calculator. If you are interested in searching for different investment properties and analyzing them, check out Mashvisor for various helpful tools.

To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.

Best places to buy investment properties in Las Vegas: Check out these neighborhoods

#1: The Strip

Airbnb Occupancy Rate: 64.8%
Median Property Price: $311,067
Traditional Rental Income: $1,598
Airbnb Rental Income: $1,823
Traditional Cash on Cash Return: 5.69%
Airbnb Cash on Cash Return: 4.71%
Traditional Cap Rate: 5.69%
Airbnb Cap Rate: 4.71%

#2: Paradise

Airbnb Occupancy Rate: 63%
Median Property Price: $313,465
Traditional Rental Income: $1,252
Airbnb Rental Income: $2,521
Traditional Cash on Cash Return: 1.29%
Airbnb Cash on Cash Return: 4.64%
Traditional Cap Rate: 1.29%
Airbnb Cap Rate: 4.64%

#3: Downtown

Airbnb Occupancy Rate: 62.9%
Median Property Price: $347,104
Traditional Rental Income: $1,523
Airbnb Rental Income: $1,873
Traditional Cash on Cash Return: 2.05%
Airbnb Cash on Cash Return: 2.11%
Traditional Cap Rate: 2.05%
Airbnb Cap Rate: 2.11%

#4: Huntridge

Airbnb Occupancy Rate: 60.7%
Median Property Price: $238,429
Traditional Rental Income: $955
Airbnb Rental Income: $2,726
Traditional Cash on Cash Return: 1.2%
Airbnb Cash on Cash Return: 7.08%
Traditional Cap Rate: 1.2%
Airbnb Cap Rate: 7.08%

#5: Meadows Village

Airbnb Occupancy Rate: 59.8%
Median Property Price: $542,131
Traditional Rental Income: $2,284
Airbnb Rental Income: $1,959
Traditional Cash on Cash Return: 3.34%
Airbnb Cash on Cash Return: 1.51%
Traditional Cap Rate: 3.34%
Airbnb Cap Rate: 1.51%

#6: Buffalo

Airbnb Occupancy Rate: 53.7%
Median Property Price: $355,284
Traditional Rental Income: $1,171
Airbnb Rental Income: $3,218
Traditional Cash on Cash Return: 1.43%
Airbnb Cash on Cash Return: 5.22%
Traditional Cap Rate: 1.43%
Airbnb Cap Rate: 5.22%

#7: Cultural Corridor

Airbnb Occupancy Rate: 73%
Median Property Price: $222,219
Traditional Rental Income: $920
Airbnb Rental Income: $862
Traditional Cash on Cash Return: 1.17%
Airbnb Cash on Cash Return: 1.89%
Traditional Cap Rate: 1.17%
Airbnb Cap Rate: 1.89%

Finding investment properties: What search tools to use

In order to find the best investment properties in the best locations, you need to use the BEST real estate investment tools. Mashvisor has exactly what you’re looking for. You can begin your search for profitable investment properties with Mashvisor’s property finder tool. This tool allows you to search for investment properties in the city/cities of your choice and explore their different neighborhoods. The tool filters out properties that do not match your search criteria making the process easier for you. You have the ability to set your budget, the number of rooms/bathrooms and your desired rental strategy. The tool will then provide you with a list of the top performing investment properties in the desired location!

Another useful tool also found on Mashvisor is our heatmap tool. Mashvisor’s heatmap makes your search for investment properties easier with easy to read visual cues. The heatmap is color-coded to help you pinpoint the different areas. For more information on how to find rental properties using our heatmap, read: How to Find the Best Investment Property Using a Heatmap.

Sign up with Mashvisor and start using our real estate investment tools to find the best investment property in any city and neighborhood nationwide! To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.

Start Your Investment Property Search!

Las Vegas NV Location