- A $300,000 home in Las Vegas in 2012 could be worth $570,000+ in 2024 because prices went up almost 90%.
- If you own 10 rental properties, you could make over $15,000 a month in passive income by year 20.
- Las Vegas is one of the top 10 fastest-growing metro areas in the U.S., so there’s a big need for rentals.
- Investors can buy more properties by refinancing the ones they have and using the increased value.
- Depreciation and 1031 exchanges are great tax breaks for real estate investors who plan to hold properties for a long time.
When you think about investing in real estate, fixing up houses to sell and quick growth plans often get all the attention. But often, the investors who are quiet and patient are the ones who make the most money in the end. By owning rental properties for years, smart investors not only build wealth, but also security and freedom. Especially in fast-growing places like Las Vegas, playing the long game isn’t just a good idea—it might be the smartest money move you ever make.
Understanding the Long Game Strategy
The long game in real estate investing is about steady growth, using time to your advantage, and keeping risk low by growing slowly and carefully. It’s the opposite of quick ways to get rich like flipping houses or wholesaling. Instead, investors who play the long game focus on buying good rental properties and keeping them for many years. The goal is to make steady rental income, let property values go up, and use time to build financial strength.
Investing in rental properties for the long term usually depends on four main ways to build wealth
- Cash Flow: Money coming in from rent after you pay expenses.
- Appreciation: Property value going up naturally over time.
- Mortgage Paydown: Rent payments slowly pay off your loan.
- Tax Benefits: Tax breaks for depreciation and other things lower the amount of taxes you owe a lot.
This plan is very appealing to people who want to build wealth that lasts without taking big risks or always trying to guess what the market will do.
The Power of Compound Appreciation
Compound appreciation is one of the most powerful things in a long term real estate plan, and people often don’t realize how important it is. Like compound interest in banking, appreciation can grow hugely over time, especially in strong markets.
In Las Vegas, from 2012 to 2022, home values jumped almost 90% (National Association of Realtors, 2022). A home worth $300,000 in 2012 could be worth over $570,000+ in 2024, depending on the area and how well it’s kept up. If you have 10 properties, that kind of growth could mean you have millions of dollars in equity.
Let’s look at the numbers more closely
- Starting Value: 10 homes at $300,000 each = $3,000,000
- 90% Appreciation Over 10–12 Years: $3M becomes $5.7M
- Equity Gained: $2.7M just from appreciation
Even a small increase in value of 3–4% each year will grow a lot over time. That’s the quiet power of holding on to properties.
Delayed Cash Flow: Why Investors Wait for the Payoff
Real estate investors often feel let down by the amount of cash flow they get at first. With high home prices, mortgage payments, insurance, taxes, and repairs, the money you make can be very small in the beginning.
But, investors who think long-term know that
- In the early years, you pay down the mortgage.
- Rents go up over time, often faster than the cost of living.
- Repair costs go down after you make big improvements at first.
- Cash flow grows a lot once the mortgage is completely paid off.
Here’s a basic idea of how one rental property might do over 20 years:
| Year | Rent (Estimated Monthly) | Outstanding Mortgage | Monthly Cash Flow |
|---|---|---|---|
| 1 | $1,800 | $270,000 | $100–$200 |
| 10 | $2,400 | $200,000 | $500–$700 |
| 20 | $3,200 | $0 | $2,500+ |
If you multiply this by 10 properties, your portfolio that once seemed “small” could be giving you over $25,000 a month in almost pure profit.
Case Study: The 10-Rental Rule
Let’s say you decide to buy one rental property each year for 10 years—many regular investors have done this successfully. Each home costs $300,000, and you pay 20% down and borrow the rest.
Things we’re assuming
- Rent per home (starting): $1,800/month
- Rent increase each year: 2.5%
- Appreciation each year: 4%
- Loan length: 30 years
- Property management costs: 8–10%
- Money set aside for repairs: 5%
Looking ahead 20–25 years
- Most or all homes are paid off.
- Rents average $3,000/home or more.
- You don’t owe much on mortgages.
- Equity is over $3–5 million (using low estimates).
- You’re making over $15,000/month in net cash flow.
A simple but able to grow system like this becomes a retirement plan, something to leave to your family, and financial safety—all in one.
Las Vegas: A Good Place for Long-Term Rental Strategy
Las Vegas is one of the best markets in the country for investing in real estate for the long run. Several things make it a great place for buying rental properties and holding them
Big Population Growth
According to the U.S. Census Bureau (2021), Las Vegas was one of the 10 fastest-growing metro areas in the U.S. in the early 2020s. As more people move from states where it costs more to live, like California or New York, the need for housing keeps going up.
High Rental Demand
Not everyone can—or wants to—buy homes. Very high home prices and not many homes for sale have made many people rent single-family homes. The HUD 2023 Rental Housing Market Analysis says that in Las Vegas, rental prices have kept going up, especially in areas outside the city center.
Prices to Buy In Are Reasonable
Even though prices have gone up, Las Vegas is still more affordable than other big cities. For example, in Spring Valley, Centennial Hills, or Henderson, investors can still find properties for under $400,000 that give good rent compared to the price.
Economy is Becoming More Diverse
Las Vegas is changing from being just about casinos. With tech companies, shipping centers, and hospitals growing, there are more kinds of jobs—which means more people who will rent homes for a long time.
Top local expert Steve Hawks says that long-term plans work well in Las Vegas because of “strong basics, high rent increases, and the good tax rules in Nevada.”
Managing the Boring: Stability in the Mundane
The good thing about rental property income is that it’s predictable—once things are steady, a portfolio that’s managed well doesn’t need as much work as you might think.
What makes a rental reliable?
- Location: Properties close to schools, work areas, and things to do for fun.
- Good Tenants: Renters who stay for a long time and take care of the home.
- Cash Flow Buffer: Enough money left over after expenses to handle times when the market isn’t doing well.
- Management Tools: Using software or a local property manager to make things easier.
The “boring” part is actually what makes it great. If renters stay for 3+ years, pay rent on time, and don’t ask for many repairs, you’re just getting checks and building equity almost without doing anything.
Overcoming the Mental Hurdles
Being able to wait to get what you want is one of the most important things for being successful in long term real estate investing. While others chase exciting quick profits, long-term investors understand
- Doing things consistently is better than doing things intensely.
- Small choices you make today grow a lot in 20 years.
- Wealth isn’t always flashy—it’s planned.
Change how you think by focusing on
- Setting goals each year: Buy or refinance one property every year.
- Imagining future value: Think about how much cash flow and value you’ll have in 10, 20, 30 years.
- Community: Talk to other people who are also investing for the long term for support.
And, remember, being consistent is better than being lucky in the long run.
Financing and Scaling Up Over Time
For most investors, going from one to ten properties feels like too much—but it’s completely possible if you use smart financing and borrowing money wisely.
Ways to Grow
- Regular Mortgages: Start with normal 30-year loans. After you have 5 or more properties with loans, you’ll need to use portfolio or commercial lenders.
- Using Equity Again: As your homes become worth more, use a cash-out refinance or HELOC to get money for down payments on more properties.
- BRRRR Method: Buy, Rehab, Rent, Refinance, Repeat—grow faster by increasing property value yourself.
- Seller Financing: Look into deals where the seller provides the financing, especially when the market is slow or with properties that are in trouble.
Work with a lender who knows about investing and long-term plans, and who can tell you when to refinance, combine loans, or buy more properties.
Tax Benefits Over the Long Haul
One of the best things about investing in rentals for the long term is the good tax treatment compared to other kinds of investments.
Main Tax Advantages
- Depreciation Deductions: The IRS lets you reduce the value of residential buildings over 27.5 years for tax purposes. This “paper loss” can balance out real income.
- Expense Write-Offs: You can deduct costs for repairs, property management, insurance, travel, and interest.
- 1031 Exchange: Trade one property for another without paying capital gains taxes, as long as you follow IRS rules.
- Lower Capital Gains Rates: Usually lower than regular income tax rates if you hold the property for over a year.
These benefits really lower the amount of taxes you owe on the money you make and when you sell.
Exit Strategies: Sell, Refinance, or Retire Off Cash Flow
After two or three decades of investing patiently, you might have millions of dollars in equity, many properties, and different ways to get your money out
- Sell Some, Keep Some: Sell a few properties to pay off any remaining mortgages and have cash flow that’s all profit.
- Cash-Out Refinance in Retirement: Get cash out using the equity without paying taxes—and you still own the property.
- Leave it to Family: Pass properties on to your children or others; they get a tax break when they inherit it.
- Group Properties Together or Expand: Turn your portfolio into a fund or use a 1031 exchange to buy bigger commercial or apartment buildings.
The best part? You don’t have to pick just one. You have more choices the longer you invest.
Risk Factors and Mistakes to Avoid
While investing in real estate for the long term is less risky than markets that change quickly, there are still things that can go wrong:
Common Risks
- Borrowing Too Much: Don’t borrow every dollar you can without having extra cash flow in case things get tough.
- Putting Off Maintenance: Plan to spend at least $2,000/year for each home on repairs.
- Bad Tenants: Always check out renters carefully, even when it’s hard to find renters.
- Market Changes: Know your local area very well. Each neighborhood in Vegas can be different.
Working with someone local who knows what they’re doing—like Steve Hawks—can really lower your chances of making mistakes you could avoid.
Is This Strategy Right for You?
Long term plans to buy and hold rental properties are good for investors who
- Prefer steady growth instead of risky quick gains
- Have a financial plan that looks ahead many years
- Want passive income for retirement or to leave to family
- Can handle making less money at first
It’s not for people who want to double their money in six months. But for anyone who wants freedom over time, it’s probably the best way to build wealth that’s available.
Getting Started in Las Vegas
If you’re ready to start investing in real estate for the long term in Las Vegas, here are the first things you should do
- Work with a Good Agent
Find someone who knows about rental analysis, not just how to negotiate sales prices. Steve Hawks, for example, knows the market very well. - Get Financing Ready Early
Talk to lenders before you make offers. Understand how much you can borrow and what your options are for buying more properties later. - Hire a Property Manager (or learn how to manage yourself)
Management is where many investors have problems. Good property managers protect your property and your time. - Start with One Good Property
You don’t need 10 properties right away. Get your first one right. Make it profitable. Then do it again.
Boring Rentals, Big Payoff
Rental properties might seem boring compared to flipping houses, crypto, or stocks, but their steady growth over time is what builds real wealth. A boring home in a good place that’s rented out for 20+ years can create millions in equity and many years of passive income. It’s not exciting—but it works.
The long-term rental plan rewards people who are patient, disciplined, and consistent. If you’re ready to build a portfolio for the long run, think about talking to Steve Hawks and his team in Las Vegas. The start of your future wealth begins with one smart buy.
Citations
- National Association of Realtors. (2022). Existing Home Sales Data: Historical Median Prices by Metro. NAR Housing Statistics. https://www.nar.realtor/research-and-statistics/housing-statistics
- U.S. Census Bureau. (2021). Fastest-growing U.S. metropolitan areas, 2020–2021. American Community Survey Annual Update. https://www.census.gov/newsroom/press-releases/2021/population-estimates-metro-counties.html
- U.S. Department of Housing and Urban Development. (2023). Rental Housing Market Analysis Annual Report. HUD Office of Policy Development and Research. https://www.huduser.gov/portal/home.html