Start of Something Big

On Wednesday, escrow closed on my first real estate investment purchase since I moved to Vegas. I look at this as the start of something big. The way this house was purchased was a story in itself. I will document the story in a future blog post.
This property might be primed for a wholesale flip...and I am biting my lip about the opportunity to flip this house, but...given the various factors surrounding this property, I will use a different exit strategy and look long-term on this investment.

Here are the factors:
1) This property is located on a street directly behind the Clark County Civic Center which includes the City Hall, Police Department, and Detention Center. The entire Civic Center block that houses the city agencies once inhabited residential houses, similar to the one I just purchased. After speaking with the previous owner, he believed the block that contained my house would eventually submit to eminent domain. That crossed my mind prior to having that conversation. If that'd be the case, ca-ching! 2) Regardless of eminent domain potential, the location is conducive to commercial zoning. I will look into this possibility and hopefully can use the property for commercial use i.e. Bail Bonds, Sandwich Shop, Day Care, etc. Of course, commercial zoning equates to higher leasing rates as compared to a residential rental property, 3) However, if the commercial zoning is not a possibility, the rental income potential can yield a ROI (Return on Investment) of 20%, which means positive cash flow of $800/month and full investment return in 4.5 years.

So as you can see I'm excited about the possibilities of this property. This week, my partner Cisco (CD), will start a simple rehab on the property i.e. paint, flooring, and window treatments. I already have a tenant lined up for October 1. And while all this has been happening, I partnered up with a Realtor that will be my exclusive agent to find more investment properties for wholesale flipping potential.