Investor commentary
Vegas works for diversified buy-and-hold investors. Avoid heavy STR concentration on the Strip corridor due to permit volatility.
How to interpret Las Vegas's rental yield
A 5.7% rental yield in Las Vegas compares favorably to coastal gateway markets (typically 4–5%) and signals an appreciation-tilted market where cash flow requires careful operations. Always underwrite with the property's actual taxes and insurance — neither tracks national averages perfectly.
Recommended underwriting adjustments
- Reset property taxes to your purchase price, not the seller's basis.
- Add 7% vacancy as baseline; stress to 10% in worst case.
- Budget 8–10% management plus 8% maintenance + capex reserves.
- Verify insurance quotes from at least two carriers before closing.