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Investing in Las Vegas!
SOMETHING YOU HAVEN'T THOUGHT ABOUT:
CORPORATE FURNISHED RENTALS
Target Market and Demand - Business
professionals/executives, convention attendees, insurance
companies, corporate/personal relocations, corporate/residential
temporary housing, and vacationers.
NOI - The key in investing these
days is covering your expenses each month while your
real property appreciates. Down payment is commonly
5-10%, with an additional 2.5% in closing costs. For
example: a $430K property would require $21K - $43K
down, with an additional $11K in closing, for a total
of $33K - $54K.
- Unfurnished Rental – no additional
upfront investment required - however, you change
your overall target market - significantly reducing
the probability of finding qualified renters.
- Furnished Executive Rental –
additional upfront investment in furnishings, approximately
5-10% or $21K - $43K, which are tax deductible,
required to decorate your new investment in the
highest quality to generate the highest rent and
attract your ideal clients – making your target
market limitless. This allows for real revenue to
be generated while your investment appreciates.
Return On Investment (ROI) – For
the same real investment – look at the extraordinary
difference in the bottom line:
| |
Four Year Ave.
Appreciation |
Executive
Locations Solutions |
| Condo. |
10 % |
27
% |
| Condo. - Upscale |
10% |
26
% |
| Single Family |
12 % |
37
% |
| Estate |
12 % |
39
% |
Condominium
Purchase price - $200,000
Down Payment (5%) and Closing Costs (2.5%) - $15,000
Furnishings (including everything from floor to
ceiling) - $15,000
UNFURNISHED RENTAL RATE = $850-$1050
FURNISHED RENTAL RATE = $1600-$195
| |
Furnished |
Unfurnished |
|
Purchase Price |
$200,000.00 |
$200,000.00 |
|
Down Payment incl. closing costs |
$ 15,000.00 |
$ 15,000.00 |
|
Furnishings |
$ 15,000.00 |
$
- |
|
Total upfront costs |
$ 30,000.00 |
$ 15,000.00 |
|
|
|
|
|
GSI |
$ 1,800.00 |
$
950.00 |
|
Rental Revenue - Annually (1) |
$ 18,000.00 |
$ 10,450.00 |
|
|
|
|
|
Mortgage/Taxes/Ins. |
$ 1,167.00 |
$ 1,167.00 |
|
Homeowners' Assoc. Dues |
$
90.00 |
$
90.00 |
|
Management Fee |
$
270.00 |
$
142.50 |
|
Utilities |
$
200.00 |
$
- |
|
Phone |
$
20.00 |
$
- |
|
Cable/Internet |
$
75.00 |
$
- |
|
Maintenance |
$
50.00 |
$
50.00 |
|
Total Expenses - Monthly |
$ 1,872.00 |
$ 1,449.50 |
|
Total Expenses - Annually |
$ 21,824.00 |
$ 17,201.50 |
|
|
|
|
|
Net Profit/(Loss) - Monthly |
$
(72.00) |
$ (499.50) |
|
Net Profit/(Loss) - Annually (1) |
$ (3,824.00) |
$ (6,751.50) |
|
|
|
|
|
Resale Price (2) |
$266,200.00 |
$266,200.00 |
|
Purchase Price |
$200,000.00 |
$200,000.00 |
|
Gross Profit from Resale |
$ 66,200.00 |
$ 66,200.00 |
|
Net Profit/(Loss) - 3 years |
$ (11,472.00) |
$ (20,254.50) |
|
Net Profit |
$ 54,728.00 |
$ 45,945.50 |
|
ROI |
27% |
23% |
|
Tax benefit for furnishings |
$ 15,000.00 |
$
- |
|
Net Real Profit |
$ 69,728.00 |
$ 45,945.50 |
|
Real ROI |
35% |
23% |
Notes:
(1) Vacancy rates calculated at 20% furnished
and 5% unfurnished per year.
(2) Appreciation calculated at 10% per
year |
|
Condominium - Upscale
Purchase price - $330,000
Down Payment (5%) and Closing Costs (2.5%) - $24,750
Furnishings (including everything from floor to
ceiling) - $24,750
UNFURNISHED RENTAL RATE= $1000-$1450
FURNISHED RENTAL RATE= $2000-$3000
| |
Furnished |
Unfurnished |
| Purchase
Price |
$ 330,000.00 |
$ 330,000.00 |
| Down Payment
incl. closing costs |
$ 26,400.00
|
$ 26,400.00
|
| Furnishings |
$ 24,750.00
|
$
- |
| Total
upfront costs |
$ 51,150.00
|
$ 26,400.00
|
| |
|
|
| GSI |
$
2,500.00 |
$
1,225.00 |
| Rental
Revenue - Annually (1) |
$ 25,000.00
|
$ 13,475.00
|
| |
|
|
| Mortgage/Taxes/Ins. |
$
1,978.00 |
$
1,978.00 |
| Homeowners'
Assoc. Dues |
$
90.00 |
$
90.00 |
| Management
Fee |
$
375.00 |
$
183.75 |
| Utilities |
$
200.00 |
$
- |
| Phone |
$
20.00 |
$
- |
| Cable/Internet |
$
75.00 |
$
- |
| Maintenance |
$
50.00 |
$
50.00 |
| Total
Expenses - Monthly |
$
2,788.00 |
$
2,301.75 |
| Total
Expenses - Annually |
$ 32,606.00
|
$ 27,387.25
|
| |
|
|
| Net
Profit/(Loss) - Monthly |
$
(288.00) |
$
(1,076.75) |
| Net
Profit/(Loss) - Annually (1) |
$
(7,606.00) |
$ (13,912.25) |
| |
|
|
| Resale
Price (2) |
$ 439,230.00 |
$ 439,230.00 |
| Purchase
Price |
$ 330,000.00 |
$ 330,000.00 |
| Gross
Profit from Resale |
$ 109,230.00 |
$ 109,230.00 |
| Net Profit/(Loss)
- 3 years |
$ (22,818.00) |
$ (41,736.75) |
| Net Profit
|
$ 86,412.00
|
$ 67,493.25
|
| ROI |
26% |
20% |
| Tax benefit
for furnishings |
$ 24,750.00
|
$
- |
| Net Real
Profit |
$ 111,162.00 |
$ 67,493.25
|
| Real
ROI |
34% |
20% |
Notes:
(1) Vacancy rates calculated at 20% furnished
and 5% unfurnished per year.
(2) Appreciation calculated at 10% per
year
|
|
Single Family Home - Midsize
Purchase price - $430,000
Down Payment (5%) and Closing Costs (3.0%) - $34,400
Furnishings (including everything from floor to
ceiling) - $32,250
UNFURNISHED RENTAL RATE= $1100-$1500
FURNISHED RENTAL RATE= $3750-$4000
| |
Furnished |
Unfurnished |
| Purchase
Price |
$430,000.00 |
$430,000.00 |
| Down Payment
incl. closing costs |
$ 34,400.00 |
$ 34,400.00 |
| Furnishings |
$ 32,250.00 |
$
- |
| Total
upfront costs |
$ 66,650.00 |
$ 34,400.00 |
| |
|
|
| GSI |
$ 3,850.00 |
$ 1,300.00 |
| Rental
Revenue - Annually (1) |
$ 38,500.00 |
$ 14,300.00 |
| |
|
|
| Mortgage/Taxes/Ins. |
$ 2,383.00 |
$ 2,383.00 |
| Homeowners'
Assoc. Dues |
$
100.00 |
$
100.00 |
| Management
Fee |
$
577.50 |
$
195.00 |
| Utilities |
$
400.00 |
$
- |
| Phone |
$
20.00 |
$
- |
| Cable/Internet |
$
155.00 |
$
- |
| Maintenance |
$
50.00 |
$
50.00 |
| Total
Expenses - Monthly |
$ 3,685.50 |
$ 2,728.00 |
| Total
Expenses - Annually |
$ 42,971.00 |
$ 32,491.00 |
| |
|
|
| Net
Profit/(Loss) - Monthly |
$
164.50 |
$ (1,428.00) |
| Net
Profit/(Loss) - Annually (1) |
$ (4,471.00) |
$ (18,191.00) |
| |
|
|
| Resale
Price (2) |
$604,119.00 |
$604,119.00 |
| Purchase
Price |
$430,000.00 |
$430,000.00 |
| Gross
Profit from Resale |
$174,119.00 |
$174,119.00 |
| Net Profit/(Loss)
- 3 years |
$ (13,413.00) |
$ (54,573.00) |
| Net Profit
|
$160,706.00 |
$119,546.00 |
| ROI |
37% |
28% |
| Tax benefit
for furnishings |
$ 32,250.00 |
$
- |
| Net Real
Profit |
$192,956.00 |
$119,546.00 |
| Real
ROI |
45% |
28% |
Notes:
(1) Vacancy rates calculated at 20% furnished
and 5% unfurnished per year.
(2) Appreciation calculated at 12% per
year
|
|
Estate Home
Purchase price - $750,000
Down Payment (5%) and Closing Costs (3.0%) - $60,000
Furnishings (including everything from floor to
ceiling) - $56,250
UNFURNISHED RENTAL RATE= $2750-$3500
FURNISHED RENTAL RATE= $6000-$7000
| |
Furnished |
Unfurnished |
| Purchase
Price |
$ 750,000.00 |
$ 750,000.00 |
| Down Payment
incl. closing costs |
$
60,000.00 |
$
60,000.00 |
| Furnishings |
$
56,250.00 |
$
- |
| Total
upfront costs |
$ 116,250.00 |
$ 60,000.00
|
| |
|
|
| GSI |
$
6,750.00 |
$
3,150.00 |
| Rental
Revenue - Annually (1) |
$
67,500.00 |
$
34,650.00 |
| |
|
|
| Mortgage/Taxes/Ins. |
$
4,150.00 |
$
4,150.00 |
| Homeowners'
Assoc. Dues |
$
200.00 |
$
200.00 |
| Management
Fee |
$
1,012.00 |
$
400.00 |
| Utilities |
$
500.00 |
$
- |
| Phone |
$
20.00 |
$
- |
| Cable/Internet |
$
155.00 |
$
- |
| Maintenance |
$
50.00 |
$
50.00 |
| Total
Expenses - Monthly |
$
6,087.00 |
$
4,800.00 |
| Total
Expenses - Annually |
$
70,920.00 |
$
57,150.00 |
| |
|
|
| |
