LAS VEGAS (KSNV MyNews3.com) -- Buying homes to rent is the hot trend in Las Vegas. The word is out and investors are in. And if they can get their hands on one, they are fixing them up and renting them out.
Kim Lewis and his family were out Saturday looking to rent with about a price range of $1,300. They had a list of homes that might meet their needs.
“They're nice. They’re what I like to see when I walk in. they're just not for us. They’re a little smaller,” Lewis said.
A check from someone like Lewis is what investors are looking for. Prices for homes are great right now, according to Bryan Gwynn of Real Estate by Design, and investors are on it.
“Right now there are multiple offers. People are buying houses way over list price; 20-30-40-50-thousand over list price. A house a couple of weeks ago had 109 offers on it,” Gwynn said.
Not only are a lot of investors buying homes in Las Vegas, a small percentage of this group is also "flipping” homes, that is buying homes and quickly repairing them to resell for profit. Nevertheless, while it may be difficult to buy with so much competition, it is opening up the rental market.
“I think it's a great time to get into the market right now. I think the market will shift at some point I think there will be less investors and more primary resident buyers and I believe will raise the rent prices,” Gwynn said.
Investor Jeff Nichols rents a house, and suggests to anyone who want to do the same not to get in over their head.
“Don't jump in and put nothing down. I don't think a lot of mortgage lenders are doing that nowadays. You want to make sure you are putting at least 10-20 percent down on your property in order to lower your payments to give you a little benefit that you don't have to pay the monthly mortgage insurance with that,” Nichols said.
But if you can, Nichols says the timing is good, and rent rates are good for those looking, like the Lewis family.