vegas+investments = good times!

[joel]

yeah i'd be totally happy with a 5 year 125% RoI

[nature boy]

ok cool. let me know when you guys buy. it's high time for a vegas trip.

[Duncan]

i might pitch in on the investment if it's that worthwhile... do you have a minimum investment amount you're looking for? not that i'd invest $20 or something... but i'm only asking because i'm uncertain how much disposable income i'd have in a year

[nature boy]

so what's happening with this house?

[geForce]

If we set this house up as a rental for vacation travelers, we might be able to get away with putting down minimal downpayment and letting the renters pay the mortgage.

[Wetundies]

Vegas is struggling hard, i mean really hard. There's no jobs available there besides the casino work, which a few have layed off a bunch. Don't know if there would be any returns there even in 5 years. I had a few customers there, all said the same thing. Down to one who is pretty much on life support now, now that Aria is completed.

[joel]

[geForce]

There are some pretty good deals right now.
Flight plus 4 nights stay at Aria = $389

[nature boy]

[Duncan]

not necessarily... if jai says to buy costs 160k, that's dirt cheap... depending on if you're buying it out right or amortizing it for however long, i imagine rent would cover what you need

[nature boy]

how many people do you think are getting in on this? even if it's 16 people, i'd imagine that there will be some who will need to take a loan to pay this off. whether it be from the bank or saying that you'll "pay jason back", i can't see vacation rentals covering all costs.

that, and the fact that jay said that he wasn't going to rent.

[joel]

if you put 32k (20%) down, leaving a principal of 128k over a 30 year amortization period, with 5 year fixed interest rate of let's say 4%, that is about 600$ a month.

if you rent to vacationeers and say can only rent it out for lets say 50% of the year, you'd need to charge about 40$ a night to just cover the mortgage payments. (7200 a year)

obviously if you are buying it outright, then whatever you can earn in rent minus expenses is just profit.

[nature boy]

[joel]

[geForce]

According to Joel's calculations, $600/month isn't too bad if it's split more than 3 ways with no rental income.