It’s true that a high cap rate doesn’t always make for the best real estate investment. At the same time, if you can find high cap rate investment properties for sale in good neighborhoods that can produce positive cash flow, then you’ve found a great real estate deal.
You can learn more about this by reading: Forget Everything You’ve Heard About What Is a Good Cap Rate.
And if you can find such a property in the Las Vegas real estate market, then you’ve hit the jackpot. Las Vegas real estate for sale is coveted among rental property investors in the US housing market. Las Vegas real estate investors have enjoyed a high return on investment as well as good real estate appreciation over the years. Considering that the Las Vegas housing market is now a cool buyer’s market, it’s the best time to start hunting for profitable rental properties in the city. But what’s the best way to start your hunt for high cap rate Las Vegas real estate for sale? Whether you live in Las Vegas, NV or want to get into long-distance real estate investing, the best way to find rental properties is online- using real estate investment software.
We’ll divide this investment property search guide into two steps:
- How to Find High Cap Rate Neighborhoods in Las Vegas
- How to Find High Cap Rate Las Vegas Real Estate for Sale
How to Find High Cap Rate Neighborhoods in Las Vegas Using Online Tools
Choosing where to invest in a particular real estate market is step #1. While you may find plenty of lists of the best cities to invest in real estate, Mashvisor is really one of the only resources that provides you with lists of the best neighborhoods to invest in. But we do more than just provide lists. We also provide the neighborhood data and tools that you need to find great neighborhoods.
Let’s start with the list of the best neighborhoods in Las Vegas, based on cap rate. All of this neighborhood data is provided by Mashvisor. Our database collects data on listings from MLS, Zillow, and other resources. We then apply our own unique algorithms to bring you the much-needed return on investment calculations.
Top Las Vegas Neighborhoods with High Cap Rates
Winchester
- Median Property Price: $261,873
- Price per Square Foot: $160
- Price to Rent Ratio: 18
- Traditional Rental Income: $1,184
- Traditional Cap Rate: 1.8%
Michael Way
- Median Property Price: $217,141
- Price per Square Foot: $159
- Price to Rent Ratio: 18
- Traditional Rental Income: $988
- Traditional Cap Rate: 1.5%
The Strip
- Median Property Price: $519,920
- Price per Square Foot: $420
- Price to Rent Ratio: 27
- Traditional Rental Income: $1,598
- Traditional Cap Rate: 1.5%
Start looking for Las Vegas real estate for sale in the neighborhood of your choice now.
Downtown East
- Median Property Price: $239,337
- Price per Square Foot: $162
- Price to Rent Ratio: 18
- Traditional Rental Income: $1,092
- Traditional Cap Rate: 1.5%
Twin Lakes
- Median Property Price: $234,586
- Price per Square Foot: $163
- Price to Rent Ratio: 21
- Traditional Rental Income: $932
- Traditional Cap Rate: 1.4%
Note: Because Airbnb Las Vegas investment properties that are non-owner occupied are banned, we’ve omitted Mashvisor’s Airbnb data. If you want access to it, click here.
A Note About the Cap Rate for a Real Estate Market
How can we get away with calling a Las Vegas neighborhood with a cap rate of 1.4% a “high cap rate neighborhood”? The reality is that a cap rate for a real estate market (state, city, or even neighborhood) is typically low. Just check out this list of cap rates by city for 2020. At least when it comes to Mashvisor’s wide real estate database, the cap rate calculation accounts for so many listings that you have plenty of low cap rate Las Vegas real estate investments that drag those numbers down. So, relatively speaking, these are the best performing neighborhoods in the city.
But, keep in mind that these numbers change over time. What’s considered a good Las Vegas neighborhood today could be replaced by an up and coming neighborhood in Sin City in the next few months. That’s why the best way to find high cap rate neighborhoods in Las Vegas is to use a real estate heatmap.
Related: What Is a Good Cap Rate for Rental Properties?
Using a Real Estate Heatmap to Find the Best Neighborhoods in Las Vegas
A real estate heatmap will ensure that you will always be able to identify the neighborhoods with the best Las Vegas real estate for sale- any time, any place. Mashvisor’s tool will help you conduct a quick and accurate neighborhood analysis of the Las Vegas real estate market.
Start by typing Las Vegas, NV into Mashvisor’s real estate search engine. You’ll then see a map of Las Vegas neighborhoods. The map will also display all of the Las Vegas real estate currently for sale across the market:
To activate the Real Estate Heatmap, click on Explore Data. This will give you access to a few different filters including:
- Listing Price
- Airbnb Cash on Cash Return
- Traditional Cash on Cash Return
- Airbnb Rental Income
- Traditional Rental Income
- Airbnb Occupancy Rate
Because we’re looking for neighborhoods where we’ll find high cap rate Las Vegas real estate for sale, let’s focus on the Traditional Cash on Cash Return filter. Why? Well, cap rate = cash on cash return if we don’t take into account the investment property financing.
Learn more by reading: Understanding Cap Rate vs Cash on Cash Return
When you set this filter, you’ll be able to identify the top neighborhoods in Las Vegas because they’ll be highlighted in green:
Want to find affordable neighborhoods in Las Vegas? Or maybe neighborhoods with multi family homes for sale in Las Vegas? You can do all of this with the Real Estate Heatmap Analysis Tool. Sign up for Mashvisor now to try it out.
How to Find High Cap Rate Las Vegas Real Estate for Sale Online
If you want to work even faster and get ahead of the Las Vegas real estate investing game, you can focus your search on high cap rate investment properties for sale. For this, we recommend that you use a rental property finder.
Mashvisor’s Rental Property Finder uses industry-leading technology to instantly find high cap rate Las Vegas real estate for sale. Maybe you’re looking for a high cap rate single family home in the Las Vegas real estate market. To use the Rental Property Finder, you’d have to set the following filters:
- Location: Las Vegas, NV
- Rental Strategy: Traditional
- Type of Property: Single Family Residential
Here is what the results would look like today:
In an instant, you have a list of high cap rate Las Vegas real estate for sale in your hands. There are also a few other investment property search filters you can use including:
- Budget
- Miles from the Location
- Number of Bedrooms
- Number of Bathrooms
It’s best to continue from the Rental Property Finder to the Property Analysis Page. The data you’ll find there, along with tools like the Airbnb calculator and the cap rate calculator will help you factor in your personal financing (cash vs mortgage) to ensure you buy only the best Las Vegas income properties.
Find High Cap Rate Real Estate in Las Vegas Now
Investing in Las Vegas real estate could be the best thing you do this year. Just be sure to conduct a thorough analysis of any prospective Las Vegas homes for sale. A high cap rate is enticing, but you need to make a well-rounded decision based on other factors like the neighborhood, cash flow, cash on cash return, and occupancy rate. Remember, you can get all this information and find the best Las Vegas real estate for sale using Mashvisor’s tools.
Start out your 7-day free trial with Mashvisor now.