Reno NV BRRR investing

7 Replies

Looking for some info on the Reno market. I know it's hot but wondering if any BRRR possibilities there. I'm in CA and BRRRing in Louisiana but CPA has advised us to buy in low tax state

Hi Kathy. As you probably know BRRRR is tough in markets that have seen appreciation like Reno. As of now it's still possible if you find the right off-market deal. Nothing on the MLS is going to come close to a good BRRRR. The problem is there has been a lot of migration from the Bay so prices have been pushed up more than rents can really sustain.

@Kathy Zickenberg

It doesn't seem like your CPA is providing accurate advice.

It doesn't matter much about the income tax rate of the state you plan to invest in.
You live in CA which is a state with one of the higher tax rates.

Furthermore, rental properties, will likely show a tax loss as a result of depreciation(not guaranteed, but likely).

Good thing is that California is not a gross income state and they will allow you do reduce your taxable income from rental properties so long as you meet the AGI threshold(below $100,000 - $150,000 threshold).

Good morning @Kathy Zickenberg . There is money to be made in the Reno area. Yes, appreciation is slowing in Reno and nationally but appreciation is a drop in the bucket if your truly doing a BRRR deal. For a BRRR to work, it's all about the acquisition price and managing rehab correctly.

Wholesaling can be a tricky thing in NV.  Plenty of people are succesful, follow the law and ethical but be careful.  Some wholesalers do not understand the law.  In May of 2019, the NV Real Estate Division finded someone $25,000 for "accepting valuable consideration as a real estate salesperson for the performance of any acts specified in NRS Chapter 645 from any person except the licensed real estate broker with whom she is associated."  Basically, this was a wholesaleing/flipping company that either didn't understand or care about NV law.

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