What Makes a Good Investment?

What Kind of Single-Family Unit is Best?

Las Vegas has seen an incredible amount of development in recent years, and that is showing no signs of slowing down. With new developments springing up around the city, it can be hard to identify what communities and properties are best for your clients. While it is hard to go wrong while investing in Las Vegas, the type of property chosen is important in achieving your investment goals in a timely fashion.


Cost Benefits

When faced with the option of single-family homes (SFH), townhomes, or condos, there are a couple factors to keep in mind that can help your clients make the right decisions. The first of these is cost. Typically, the purchase price of a SFHs will be more expensive than a townhome and a townhome will be more expensive than a condo. However, the purchase price is only part of the overall picture for an investment property. While townhomes and condos may be cheaper at the outset, they can come with hefty HOA fees that can eat up a large part of your clients' profit margin. Although HOAs are everywhere in Las Vegas, the cost of an HOA in a SFH community will likely be significantly lower than in a similar townhome or condo community. Continuing with the cost analysis of these types of properties, SFHs will likely incur higher maintenance costs than the other two types of properties. This is because outside of certain circumstances, HOAs cover many of the external and community repairs of condos and townhomes, whereas in SFH communities most, if not all, of the maintenance burden is placed on the homeowner.


Market Appeal

Another factor that should be considered when investing in rental properties is making sure your properties appeal to the widest market of possible renters. This will ensure the largest selection of potential tenants and increase your clients' odds of having the perfect tenant in their property.

On the average, condos will be the smallest type of property that can be offered. These relatively small units will appeal to tenants who do not need much space, or those without many pets. Additionally, to cover the increased cost of HOAs, these units will tend to have higher rent amounts. On the other hand, SFHs will offer the most space, with the potential for added benefits in the form of backyards, pools, and larger garages. However, this space will be at a premium and is best suited for tenants who could take advantage of the 3+ bedrooms.


This leaves townhomes as the sweet spot between the two extremes. Townhomes offer more space than condos, perfect for a couple, growing family, or a handful of roommates, while not being as large to only target large families or multiple occupants like an SFH. Townhomes will also come with lower HOA payments, as the community is no longer responsible for utilities. Not all townhomes are made the same, however. When evaluating townhomes, aim for only those that have two-car garage. Lacking that, look for single-car garages with driveway space. This is important because in many situations, when there is more than one tenant, they will have more than one vehicle. Whereas in most SFH communities, curb parking may be allowed, in many townhome and condo communities, this is not the case. This lack of parking space, and the complaints from the HOA it will cause, can be a make or break for an investment property.


If you want to make sure that you are orienting yourself towards the best possible investments to grow your real estate portfolio, feel free to contact us as your resident property manager to provide expert insights into what you can except from your potential rental property.

Turn Extra Cash into Lasting Legacy: Help Your son/daughter Own a Home!

April 28, 2025
Helping Your Child Buy a Home: Smart Strategies with Tax Benefits  Many parents want to help their children buy a home, but doing so in a way that also provides financial and tax advantages is key. Here are a few strategies to consider when assisting your son or daughter with homeownership while maximizing tax benefits. 1. Gifting Money for a Down Payment The IRS allows individuals to gift up to $18,000 per recipient annually ($36,000 for married couples) without triggering a gift tax. If you stay within this limit, your child receives a down payment boost without tax consequences. 2. Loaning Money to Your Child Instead of gifting, you can lend money at the IRS’s Applicable Federal Rate (AFR), which is often lower than traditional mortgage rates. Structuring it as a formal loan allows your child to build equity while you may receive interest income. 3. Co-Signing or Co-Owning the Home Some parents choose to co-sign a mortgage or co-own the home. While this can help secure better loan terms, it also means shared financial responsibility. If you co-own, you may be able to deduct mortgage interest and property taxes on your tax return, depending on usage. 4. Buying the Home as an Investment Property If your child pays you rent, the home could be classified as an investment property. This allows you to deduct expenses like mortgage interest, property taxes, and maintenance. However, rental income must be reported to the IRS. Final Thoughts Every financial situation is unique, and tax laws change. Consulting with a tax professional or estate planner ensures that your support aligns with your financial goals and tax strategy. Helping your child buy a home is a generous step—doing it wisely ensures benefits for both of you.

Using Our Screening Score Sheet for Rental Applications

April 21, 2025
When applying for one of our rental properties, we use a comprehensive screening score sheet to ensure all applicants are held to the same standard. The score sheet evaluates various aspects of your financial stability and rental history, helping the landlord make informed decisions while maintaining a fair and transparent process! Here’s a breakdown of how we assess your application utilizing the screening score sheet: 1. Length of Residency: While longer periods at previous residences typically suggest reliability and commitment, we understand that some applicants may be first-time renters. We welcome first-time renters, and on the screening score sheet, you can assign yourself a "1" under "Length of Residency" if this is your first rental experience! 2. Collections: We review any outstanding collections, including monthly utilities or bills, as well as loans (excluding medical bills). This helps us assess your overall financial responsibility. Your estimated monthly payment for all your loans, utilities and bills is also taken into consideration. 3. Rent-to-Income Ratio (per household): To ensure you can comfortably afford the rent, we require that your monthly income is at least 2.5 times the rent amount. This ratio helps us verify your ability to manage rent payments alongside other living expenses. 4. FICO Score: While there is no specific minimum FICO score, we do take it into account when evaluating your financial health. A higher score indicates a history of responsible credit management. 5. NSF/Late Payments & Landlord Disputes: We look into your rental history to ensure that there are no frequent NSF (non-sufficient funds) or late payments, and that there are no unresolved disputes with previous landlords. Please note that all application charges are non-refundable, and every occupant over the age of 18 must submit a separate application. Our scoring system ranges from 0 to 21, with 15 being the lowest acceptable score. All approvals or denials are ultimately decided by the property owner. We do not operate off a first come first serve basis, so if you are curious about the status of applications prior to applying, please don’t hesitate to call our office! By using our screening score sheet, we aim to create a rental environment where both tenants and property owners can thrive. This score sheet can be found on our site, under the Before You Apply Manual, as well as under “Rental Resources”.

Declutter and Earn: Join the Outdoor Swap Meet at the Downtown Recreation Center in Henderson!

April 16, 2025
Looking to declutter your home while making some extra cash? The outdoor swap meet at the Downtown Recreation Center in Henderson is the perfect opportunity! Whether you’re cleaning out your closets, clearing space in your garage, or finding a new home for gently used toys, books, and clothes, this event is your chance to turn those items into money. Each booth equals two parking spots, and registration is required at least one week in advance. All booths are assigned randomly, ensuring a fair and fun atmosphere for all. Remember, only second-hand items can be sold, so it’s a great way to recycle and give your items a second life. Event takes place April 19th & May 17th! The swap meet opens at 7am, so come early to shop! Admission is free for all ages, making it a perfect outing for families looking to find unique treasures. Ready to get started? Simply register on the City of Henderson website to secure your spot. It’s time to clean out, earn some extra cash, and find something new – don’t miss out on this exciting event at the Downtown Recreation Center!
More Posts