Investor · Member since 2024 · 10 posts · 10 votes
Hi everyone,
I invested in my first property (a 4plex) in Carson City in late 2022. I originally had the thought and opportunity to do so in Reno/Sparks in 2015 but didn't move on it. (Sigh...).
I'm looking to make my next deal this year, another multifamily. I do have an agent but I'm just looking to learn more about the market on here. At the time my agent took me to Fallon and Fernley, which I poo'poohed but I'm seeing how high costs are in Reno that I'm willing to learn more about these areas.
Anyway, just saying hello. Would welcome connecting with others in the Northern Nevada area.
Investor · Miami, FL · Member since 2015 · 355 posts · 268 votes
1y
Congratulations on the fourplex. Best way to learn an area is to drive/walk around as much as you can. Get a feel for the neighborhoods and streets that you can't get from reading stats on the internet. Work with multiple brokers, as a buyer - don't restrict yourself to a single broker. See who is doing the most multifamily deals in the area and you may get some off-market/pre-listing opportunities.
I'm in the market in Reno, Sparks, and Tahoe and I have seen some very strong appreciation over the last year. The new manufacturing out at Tesla and the new lithium battery factories will continue to put upward pressure on prices and increase competition. Although the cost is high for these areas there is little new construction. We are still seeing Reno as the place to be right now and Sparks is also getting more expensive.
Investor · Miami, FL · Member since 2015 · 355 posts · 268 votes
1y
Congratulations on the fourplex. Best way to learn an area is to drive/walk around as much as you can. Get a feel for the neighborhoods and streets that you can't get from reading stats on the internet. Work with multiple brokers, as a buyer - don't restrict yourself to a single broker. See who is doing the most multifamily deals in the area and you may get some off-market/pre-listing opportunities.
Congratulations on the fourplex. Best way to learn an area is to drive/walk around as much as you can. Get a feel for the neighborhoods and streets that you can't get from reading stats on the internet. Work with multiple brokers, as a buyer - don't restrict yourself to a single broker. See who is doing the most multifamily deals in the area and you may get some off-market/pre-listing opportunities.
Developer · Rochester, NY · Member since 2016 · 403 posts · 338 votes
1y
@Alev G. the litmus test I use in exploring an area is incomes and population density.
If the population density is too low and not somewhat close to an employment center it’s not going to be a Green light for me. In terms of incomes I use the 30% rule. I’ll take the median area income and multiply it by .3. That gives you a sense of housing affordability threshold. Since I only do value add deals, I want to make sure there are rent comps and income that can afford my renovation spec. And then the third calculation I do is median home price. If the median home price for an area is on par with rent, it’s generally not a good sign. For instance, I had a 72 unit apartment deal where surrounding homes in the area were $130k and because of this I couldn’t push rents to where I wanted them to be because qualified renters could just buy a house for around the same monthly payment of my two bedroom apartments.
@Alev G. the litmus test I use in exploring an area is incomes and population density.
If the population density is too low and not somewhat close to an employment center it’s not going to be a Green light for me. In terms of incomes I use the 30% rule. I’ll take the median area income and multiply it by .3. That gives you a sense of housing affordability threshold. Since I only do value add deals, I want to make sure there are rent comps and income that can afford my renovation spec. And then the third calculation I do is median home price. If the median home price for an area is on par with rent, it’s generally not a good sign. For instance, I had a 72 unit apartment deal where surrounding homes in the area were $130k and because of this I couldn’t push rents to where I wanted them to be because qualified renters could just buy a house for around the same monthly payment of my two bedroom apartments.