Las Vegas is a booming place that requires the use of cash on cash return rental property calculator to determine the best property investment.
Table of Contents
- Is the Las Vegas Real Estate Market a Great Place to Invest in 2023?
- How to Find the Best Investment Properties in Las Vegas
- The Top 5 Neighborhoods in Las Vegas for Short Term Rentals
Investing in real estate can be a fantastic venture if done correctly. Many investors are drawn to Las Vegas due to its booming tourism industry and vibrant economy. However, finding a Las Vegas rental property that promises high cash on cash return can be challenging.
Nevertheless, you are in the right place if you’ve ever thought about the cash on cash return calculator vs Excel topic when it comes to lucrative investment properties.
Fortunately, with the help of a rental property calculator, it is possible to identify properties that offer a high return on investment. In this article, we will discuss how to find a Las Vegas rental property that promises high cash on cash return using such a calculator.
Moreover, one of the best cash on cash return rental property calculators you can find out there is Mashvisor.
Is the Las Vegas Real Estate Market a Great Place to Invest in 2023?
Yes, the Las Vegas real estate market is expected to be a great place to invest in 2023. According to industry experts and real estate analysts, Las Vegas is one of the fastest-growing cities in the US, with a rapidly increasing population and job market
According to the Las Vegas Review-Journal, the housing market in Las Vegas is strong, with the steady increase in home values in 2022 expected to continue this year. In retrospect, the median home price in Las Vegas rose by 18.6% from December 2020 to December 2021. Experts expect the Las Vegas market to continue experiencing significant growth in 2023.
Additionally, the demand for rental properties in Las Vegas is high, partly due to the city’s booming tourism industry. According to the Las Vegas Convention and Visitors Authority, Las Vegas welcomed over 38.8 million visitors in 2022. The tourist figures point to a substantial need for rental properties in the area.
Overall, the Las Vegas real estate market is a great place to invest in 2023, with high demand for rental properties and steady growth in home values.
However, it’s important to note that investing in real estate always carries some level of risk, and the Las Vegas real estate market can be volatile and fluctuate quickly. As such, it’s essential to do your research and understand the market before making any investment decisions.
Real Estate in Las Vegas: Most Recent City-Level Data
Below you, you can find the most recent Mashvisor data for real estate in Las Vegas as of February 2023.
- Median Property Price: $538,295
- Average Price per Square Foot: $286
- Days on Market: 93
- Number of Long Term Rental Listings: 11,010
- Monthly Long Term Rental Income: $1,837
- Long Term Rental Cash on Cash Return: 2.36%
- Long Term Rental Cap Rate: 2.39%
- Price to Rent Ratio: 24
- Number of Short Term Rental Listings: 3,169
- Monthly Short Term Rental Income: $2,942
- Short Term Rental Cash on Cash Return: 3.37%
- Short Term Rental Cap Rate: 3.42%
- Short Term Rental Daily Rate: $203
- Short Term Rental Occupancy Rate: 47%
- Walk Score: 38
Based on the above data, when it comes to Las Vegas investment properties, it is best to focus on short term rental properties in Las Vegas.
Pros and Cons of Investing in Properties in Las Vegas
Investing in Las Vegas can be an attractive opportunity for real estate investors, but weighing the pros and cons before making any investment decisions is important.
Las Vegas Properties: Pros
- High demand: Las Vegas is a popular tourist destination and with a rapidly growing population, which means there is a high demand for rental properties in the area. The high demand can lead to higher rental rates and a potential for increased cash flow.
- Appreciation: The Las Vegas real estate market has shown steady appreciation over the past few years, with a 17.2% increase in median home values last year alone. The trend is expected to continue in 2023, making it a potentially lucrative market for real estate investors.
- Tax benefits: Real estate investing in Las Vegas can offer tax benefits, including depreciation deductions, mortgage interest deductions, and property tax deductions. The tax benefits can help reduce the tax burden on rental income.
Real Estate in Las Vegas: Cons
- Volatile market: The Las Vegas real estate market can fluctuate quickly, which means there is always some risk involved in investing. Real estate investors should be prepared for potential market downturns and take steps to minimize their obstacles.
- Competition: With the high demand for rental properties, there is also significant competition among real estate investors. The intense competition can lead to higher prices and make finding properties with high Las Vegas rental returns more challenging.
- High property taxes: Property taxes in Las Vegas can be relatively high compared to other areas, which can eat into potential profits for real estate investors.
Related: 40 Best Places for Buying Investment Property in 2023
How to Find the Best Investment Properties in Las Vegas
Finding the best investment properties in Las Vegas requires a combination of research, analysis, and knowledge of the local real estate market. Here are some steps you can take to find the best investment properties in Las Vegas:
Define Your Investment Strategy
Before you start looking for investment properties, defining your investment strategy is essential. Determine what type of property you want to invest in, such as single family homes, multifamily houses, or commercial properties. Also, decide if you’re going to focus on cash flow, appreciation, or both.
Before focusing on any Airbnb properties in Las Vegas or Las Vegas houses for sale, know your end goal, your budget, your rental property investment approach, and the tools you will use.
Research the Local Market
Research the local real estate market to understand better the area’s trends, pricing, and demand. Look at market reports, analyze historical data, and follow local real estate news. Additionally, research the neighborhoods where you’re interested in investing, including the demographics, crime rates, and nearby amenities.
Seek Airbnb properties for sale in Las Vegas and houses for sale in Las Vegas, but always keep in mind the current real estate condition and figures.
Network with Local Professionals
Networking with local professionals, including real estate agents, property managers, and lenders, can help you gain valuable insights into the local market. They can provide you with market trends and access to off market properties. Also, they can help you identify potential investment opportunities.
Moreover, when it comes to Las Vegas Airbnb properties and Las Vegas rental earnings, the more you can find out about such topics from local experts, the easier the investment process.
Related: Should Investors Work With Real Estate Agents Near Me?
Use a Mashvisor Real Estate Calculator
A real estate cash on cash calculator can help you analyze potential investment properties and determine their cash on cash return. The metric measures the amount of cash generated by the property relative to the initial investment.
By using a real estate calculator, you can quickly evaluate potential investment properties and identify those with the highest rental property returns.
Mashvisor’s real estate calculator will help you estimate the cash on cash return that your rental property can generate.
Mashvisor’s Cash on Cash Return Rental Property Calculator
Mashvisor is a powerful real estate investment tool that can help investors find the best investment properties in Las Vegas. Here are some ways that Mashvisor can help you.
1. Investment Property Search
Mashvisor offers a comprehensive investment property search that allows investors to find properties that meet their specific criteria. Users can search for properties based on the best location, property type, price range, and other factors. The search results include detailed property information, such as rental income, occupancy rates, and cash on cash returns.
2. Neighborhood Analysis
Mashvisor’s neighborhood analysis tool provides investors with a detailed overview of a neighborhood’s demographics, crime rates, school ratings, and other important factors that can impact the desirability of a rental property. The tool can help investors identify neighborhoods with the best long term profitability potential.
4. Rental Comps
One of the key features offered by Mashvisor is the rental comps feature, which provides information on comparable rental properties in a given area.
Using Mashvisor’s rental comps feature, investors can search for comparable rental properties in a given area and get information on key metrics such as rental income, occupancy rate, and average rent. Such information can help investors determine the potential rental income they can expect from a particular property, as well as help them set an appropriate rent price.
Overall, Mashvisor’s rental comps feature is a powerful tool for real estate investors who are looking to make data-driven decisions.
Related: How Can I Find Rental Comps Near Me?
3. Cash on Cash Return Rental Property Calculator
Mashvisor’s cash on cash return rental property calculator is a powerful tool that helps investors determine the potential profitability of an investment property. The rental calculator generates an accurate estimate of the property’s cash on cash return by inputting key financial data. The data includes the purchase price, rental income, and operating expenses.
The cash on cah return metric measures the amount of cash generated by the property relative to the initial investment. It is a critical factor in determining the long term profitability of an investment.
If you wish to learn more about Mashvisor’s cash on cash return rental property calculator, or many other features, start your 7-day free trial now.
Conduct Property Inspections and Make an Offer
Before making an offer on an investment rental property, conduct a thorough property inspection. The inspection can help identify any potential issues or repairs needed, which can impact the property’s value and profitability.
Now, once you’ve identified a potential investment property that meets your criteria, make an offer that is competitive but also aligns with your investment strategy. Be prepared to negotiate and work with the seller to reach a mutually beneficial agreement.
The Top 5 Neighborhoods in Las Vegas for Short Term Rentals
Now, let’s focus on some best Las Vegas neighborhoods for good rental return properties. Mashvisor presents you with the latest data as of February 2023. Moreover, we ranked the locations below from the highest to the lowest cash on cash return.
1. West Las Vegas
- Median Property Price: $347,602
- Average Price per Square Foot: $240
- Days on Market: 93
- Number of Short Term Rental Listings: 152
- Monthly Short Term Rental Income: $3,157
- Short Term Rental Cash on Cash Return: 6.34%
- Short Term Rental Cap Rate: 6.44%
- Short Term Rental Daily Rate: $181
- Short Term Rental Occupancy Rate: 46%
- Walk Score: 30
2. East Las Vegas
- Median Property Price: $299,284
- Average Price per Square Foot: $230
- Days on Market: 85
- Number of Short Term Rental Listings: 179
- Monthly Short Term Rental Income: $2,856
- Short Term Rental Cash on Cash Return: 5.82%
- Short Term Rental Cap Rate: 5.92%
- Short Term Rental Daily Rate: $153
- Short Term Rental Occupancy Rate: 45%
- Walk Score: 55
3. Huntridge
- Median Property Price: $419,193
- Average Price per Square Foot: $254
- Days on Market: 91
- Number of Short Term Rental Listings: 435
- Monthly Short Term Rental Income: $3,343
- Short Term Rental Cash on Cash Return: 5.58%
- Short Term Rental Cap Rate: 5.65%
- Short Term Rental Daily Rate: $193
- Short Term Rental Occupancy Rate: 48%
- Walk Score: 54
4. Rancho Charleston
- Median Property Price: $422,680
- Average Price per Square Foot: $242
- Days on Market: 101
- Number of Short Term Rental Listings: 298
- Monthly Short Term Rental Income: $3,406
- Short Term Rental Cash on Cash Return: 5.46%
- Short Term Rental Cap Rate: 5.54%
- Short Term Rental Daily Rate: $222
- Short Term Rental Occupancy Rate: 45%
- Walk Score: 39
5. Downtown East
- Median Property Price: $386,096
- Average Price per Square Foot: $602
- Days on Market: 81
- Number of Short Term Rental Listings: 236
- Monthly Short Term Rental Income: $2,931
- Short Term Rental Cash on Cash Return: 5.21%
- Short Term Rental Cap Rate: 5.29%
- Short Term Rental Daily Rate: $156
- Short Term Rental Occupancy Rate: 46%
- Walk Score: 72
Ready to start investing in profitable short term rental properties in Las Vegas? Begin your search with Mashvisor today.
Cash on Cash Return Rental Property Calculator: Conclusion
Las Vegas remains an attractive destination for investors looking to invest in long term or short term rental property. With its growing economy, job market, and tourism industry, the city offers numerous cash flow and property appreciation opportunities.
To make informed investment decisions, it’s essential to evaluate potential properties using key metrics, which can be easily calculated using a cash on cash return rental property calculator.
Additionally, investors should conduct thorough research on neighborhoods, rental market trends, and financing options to determine the viability of a property.
In addition, Mashvisor’s cash on cash return rental property calculator comes with an intuitive interface, customizable reports, and comprehensive analysis. It can help investors save time and choose the ideal property for their investment.
Book a demo now and learn how Mashvisor’s cash on cash return rental property calculator can help you pick the ideal investment property in Las Vegas.
FAQ
What Is a Good Cash Flow Return on Rental Property?
Typically, investors aim for a cash on cash return of at least 8%-12%. However, the ideal cash on cash return will vary depending on the investor’s goals and market conditions. In some cases, a cash on cash return of 5% may be considered good if the property is located in a high-appreciation market, where property values are likely to increase significantly over time.
Ultimately, the ideal cash on cash return will depend on various factors, such as the property’s location, rental rates, operating expenses, and financing costs. This is where a cash on cash return rental property calculator can be beneficial.
How Do You Calculate Cash on Cash Return on Rental Property?
Calculating the cash on cash return on a rental property is critical to evaluating its potential as an investment. To calculate the cash on cash return, you’ll need to divide the property’s annual pre-tax cash flow by the amount of cash you’ve invested in the property.
A cash on cash return rental property calculator can help you quickly and accurately calculate such an important metric. It will allow you to evaluate potential investments and make informed decisions about your portfolio.
By calculating the cash on cash return, you’ll be able to determine how much cash flow the property is generating relative to the amount of cash you’ve invested. It can help you evaluate whether the investment is worth pursuing and whether it meets your investment goals.
What Is the 2% Rule in Real Estate?
It is a guideline in real estate investing that suggests a rental property should generate monthly rental income that is equal to or greater than 2% of the total purchase price. If you buy a rental property for $100,000, the monthly rental income should be at least $2,000 to meet the 2% rule.
The 2% rule is a quick and easy way to evaluate the potential cash flow of rental property investment. It is often used by investors who are looking for properties with high cash flow potential and may be more interested in short term gains than long term appreciation.
