Las Vegas 2 bedrooms won't sell at 25k

Quote from Macho:

I cracked up when I saw it. I have a feeling it should have been 72,000 . If it is right ,why would the real estate agent not snap it up?
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You would be surprised at what can go wrong with some of these places. When I lived in Vegas I found a condo for sale for around $40k in 2001. I knew the place was worth at least 90-100k but after I did some research I found there was an issue with the water main going into the condos. It was going to cost maybe $100k or $200k to dig up the street and fix it and also another $10k or so to put a water meter on the place. Obviously if you lived there it was not worth it to have this fixed.

Going there I saw that about 12 out of the 16 people that lived in the condos had walked away because they had no water going to their homes. I had an idea to put them all under contract and flip them to an investor because I knew the cost to fix it could be spread out over 12 condos, but I lacked the $12k in earnest money to make an offer to the banks. ($1k per offer) I was in my 20s and didnt really know anyone with $12k that they could loan me, and those that I could find that had money, wanted to know the address of the property first(so they could cut me out of the deal). So I didnt get the deal done. The guy that did made about $350k profit in 18 months. That would've been a nice score for me at that time even if I just flipped them for $50k to someone else.

At the height of the boom they were selling those condos for $170k. Today they are going for $30k which is less than what they cost when they had problems!

But I digress. It just goes to show you that there can be a very big expense in a cheap property that makes the cheap property not worth it unless you are creative.
 
Quote from peilthetraveler:

Did some digging...found about 11 of them in the same complex for sale. Forget the one that costs $25k. Buy this one that was listed a week ago for $720.

http://www.zillow.com/homedetails/2110-Los-Feliz-St-UNIT-1002-Las-Vegas-NV-89156/7028296_zpid/#{scid=hdp-site-map-bubble-address}
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Incredible! Check out the Price History:-

Date Description Price % Chg Source
08/31/2011 Listed for sale $720 -97.9% REALPROS
12/28/2009 Sold $35,000 -78.9% Public Record
11/09/2005 Sold $165,500 75.1% Public Record
11/26/2003 Sold $94,500 35.0% Public Record
04/24/1998 Sold $70,000 -- Public Record

$720?
 
As a non US-citizen I am stunned at the prices listed here.

Even assuming that you can't rent out such a property, if you held for five years you'd surely make a profit?! How can you lose - it sounds like buying an option without any time premium marked in?

I can only assume that the "real" cost is a lot higher than $720 in terms of ongoing financial obligations as the legal owner (tax, service obligations, mandatory insurance?). Perhaps others could inform here?

If say you had to pay out $2,000-$5,000 each year as some kind of legal requirement and the place needed a lot of work to make it anywhere remotely habitable then maybe the $720 asking price would make some more sense? But still...

Is this area in Las Vegas especially dangerous to live in? Surely some homeless guys would like a place like this rather than living on the streets?
 
As someone else suggested the listing at $720 must be a typo error! Sale prices in the neighbourhood seem to be nearer $50000-$70000.
 
Quote from stock777:

anyone know what kind of neighborhood this is. maintenance?

not interested for me, just curious what 25k buys
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i`ll be your neighbor,just don`t commit suicide then,please.

:D :D

ahhahah
 
the trends in the real estate worldwide are the following:

1. growing number of people having less and less assets and more and more debt. they will not afford to buy even $10,000 home.
such people will reach 80% of the total population sometime in the (near) future

2. booming wealth of the richest class. the rich elite already has at least 3x more real estate space than they can possibly occupy. its all EMPTY.

notice that the number of luxury homes and condos for rent above $2.5k/ month is several times higher than homes for rent at below $2.5k.


in a nutshell:
the rich don't really need 8th mansion in their crown, especially when its close to impossible to rent it.

the poor don't have money to buy any real estate, even with mortgage.

the shrinking middle class is struggling to pay rates for their current american dream.
Las Vegas, Portland, Ohio, missisipi and minnesota will be the next Detroit.
 
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