Las Vegas Property Management Blog, the G-Gram

What Are the Advantages of Owning Las Vegas Rental Real Estate?

Wednesday, March 20, 2019

Are you thinking about investing in rental real estate in Las Vegas but you don’t know if this is the right decision for you to make or not?

If so, in this article we will share with you some of the advantages that come from investing in rental real estate.

Advantage #1 – Fixed Expenses

The first obvious advantage that comes from investing in rental real estate is fixed expenses. 

Unlike other businesses where your expenses may increase or decrease on a monthly basis, with real estate you will enjoy fixed expenses and not have to be concerned with fluctuating expenses each month.

The most common monthly expenses that you can expect to pay when you own rental properties include your monthly mortgage, homeowner’s insurance, HOA fees, property management fees, and utilities if you’re going to pay them.

In many cases, you will be able to have a positive monthly cash flow from the first month that you own your rental property.

Example: Let’s say that your rental property rents for $2,100 per month and your monthly expenses are $2,000 per month. You will be able to enjoy positive cash flow of $100 per month from your first month and that cash flow will only grow over time since the average rent appreciation is between 3% to 4% per year.

Advantage #2 – Asset Appreciation

Another excellent reason to invest in rental real estate right now is asset appreciation. You can expect the value of your rental property to continue appreciating the longer that you own it.

The price of existing homes increased by 5.4% annually from 1968 to 2009, on average. (Natl. Assoc. of Realtors, p.1, p.2) Notice that this is the same figure as new homes by the Census Bureau for a similar period. Once we adjust for the fact that homes get bigger over time, the annual rate is 3.7%.

Advantage #3 – Own Something That You Can Pass Down to Your Heirs

Besides the advantages that we’ve mentioned this article, another reason to invest in rental real estate is that you will have the ability to invest in something that you can pass down to your heirs.

Sadly, very few people are able to leave behind appreciating assets that produce positive monthly cash flow after they die and you would be offering your heirs a huge advantage that they would not be able to enjoy with any other type of asset.

If you’re concerned about the commitment to maintain your rental property yourself, collect rent and interact with your tenants, property management makes owning investment properties easy.

Contact Blackbird Realty & Management

To learn more about the services that Blackbird Realty & Management can offer you contact us today by calling (702) 903-3556 or click here to connect with us online. 

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