I am a first time investor and CPA from California working to start my investing journey by investing in multi-family properties. I am considering out of state investing opportunities, and would like to explore investing opportunities in Nevada. My initial strategy is to house-hack with an FHA loan on a duplex/triplex and scale up from there on my second and third properties. I am also open to single family homes, with opportunities for appraisal on those properties. What markets in Nevada (example Las Vegas) would you recommend are the best for multi-family homes (2-4 units) in the $250- 600K range? Thank you in advance for your advice.
Do you plan to move to the Vegas metro? In order to use an FHA loan to buy a 2-4 family property, you have to live in one of the units.
@Phillip Dwyer thank you for the message. Yes I plan to move to Nevada and live there should I opt to go for a Nevada property. I’d live in one of the units and rent the others out.
There are some things to consider then if you plan to live in it. Do you care if the community has amenities like pools, green belts, and gated entrances? Do you need a garage? A lot of the communities that have the amenities also have requirements to use their onsite property management, which for many is a deal killer.
Where you work might also drive some of your location decisions. Does driving distance matter?
@Bryan L. Ramirez - Hi Bryan - Welcome to the thread. Where in NV are you looking? For FHA, you may run into maximum loan limit for multi-fam depending on the area. This LINK will take you to the FHFA page that describes limits; at the bottom is a link to a spreadsheet that shows multi-fam (up to 4 units) and the limits by county. As an investor, if you can avoid FHA, do it. The rates are higher and usually have private mortage insurange. That being said, FHA can provide a great path to getting started.
Limits for the Reno area...
@Phillip Dwyer thank you for bringing those questions up for consideration. I’ll have to do more homework in my search but as for all those factors it depends on the property and location. I’ll think further but as for driving distance as long as less than hour travel time it be okay.
@Bill Schrimpf thank you so much for the link and resource. I’ll factor this in my search. Definitely something I need look further into so thank you!