Reno/Sparks Nevada, a growth market?

Question

With the Tesla factory being built in Sparks NV, it seems like the area is due for some growth.   What do you think?

Shruti Jain · Answer

@Tim Farrell We're looking at investing our first rental property in Reno/Sparks area due to the tech companies (Tesla, Apple and so on) growing their operations in that area. What are your thoughts on the market? Is it a good time to invest in single family homes?

Brendon Borrego · Answer

@Jake Sklanka I am not @Tim Farrell, but I believe the Mid Town area is still growing and will be growing quickly. We will see Midtown grow even further south as there is more building going in at Park Lane. Where I am amazed is the fact that some homes are selling for low 200's while a house across the street is selling for 400,000. I would think the conditions make for a great flip market.

Another area that I am interested in that has seen large growth, but not sparked the conversation that Midtown has is over off of Victorian by the Nugget. With a second luxury theater taking over the old Cinemark theater, huge amounts of apartments going in and a vacant building with potential to be a huge commerce center (Bourbon Square), I believe the area is destined to have a huge revitalization.

I am looking forward to what the Reno/Sparks area has coming and would love to hear any opinions on what the market has to offer.

Brendon

Account Closed · Answer

Update: evidently within the past few days a group of investors have been buying up houses in Fernley with cash.  No proof that they're from Tesla but that seems to be the rumor.  Evidently 8 homes have gone to the same group in just a couple days.

Tim Farrell · Answer

The market in Fernley, especially in the 3/2 homes have changed quite a bit in the last 4-6 months.  What you use to be able to purchase in the '90's in now around 120,000.  I have purchased 4 homes in the past 4 months in Fernley to hold as rentals, but the challenge that I'm facing is although the pricing of the homes have been increasing the amount of rent that you can get for these homes has not.  So, margins are being squeezed.

It is hoped that in time rents will increase with the build out of the industrial park (supply and demand) but the question will still be will rents outpace home pricing?

Jake Andronico · Answer

@Josh Violette

This post aged very nicely :)

Jake Sklanka · Answer

@Tim Farrell What are your thoughts on Midtown Reno? While I was visiting friends there it seemed like the area was becoming a 'cooler' area to live. Are there certain neighborhoods you're getting higher rents in or is more of the quality of the rental?

Cheers,

Jake

Tim Farrell · Answer

I have been investing here for the past 3 years and was able to find some good properties which are giving me very acceptable ROI's. But as with most places inventory is very low and pricing has been increasing. It is becoming challenging to find a rental where you are at the 1% return.  As I stated home pricing is increasing but rents have not been keeping pace.

It's a growing marke but you need to look long and hard to find the correct investment that will generate the ROI that your looking to achieve

Hope this helps

Tim

Patricio Tellez-Giron · Answer

@Tim Farrell Account Closed please keep us in the loop and let us know if and when there is a good opportunity. I'm pretty sure that whole area will see a lot of development in the long term.

Josh Violette · Answer

Thanks for the article, Vincent.

Not much info, but better then nothing.    I could not find anything online about the Gigafactory affecting home prices in the area.  But, it seems like it could not hurt the area.   I'm I right?  Or do you think it's a foolish move.

Account Closed · Answer

I live in the next town east of where the factory is going in; so far my realtor wife and I have not seen much change.  Of course, we are also heading into the holidays and cold season so perhaps by next spring things might pick up.  As far as foolish goes, I am investing in this area.  But then, I live here.

Reno/Sparks Nevada, a growth market?

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