I'm Nick - reasonably new to the game with 1 deal in Arkansas. I'm looking to relocate to Reno in the next few months and do a house hack. I've carved out some time to do some 'boots on the ground' exploring in the first week of October.
I'm very keen to connect with others who are active in the Reno market and may have looked at multi-family properties in the last ~12 months and discuss pros and cons and help me dial in my numbers. I'm also trying to wrap my head around which way the path of progress is heading and had a few questions.
Anyone up for a coffee? Either in person or virtual?
A few of the questions I have right now are:
1. Midtown looks like its booming, and pushing east towards S Wells Ave, and south towards Plumb Ln? Do I have this right? Is there a line in either direction that people generally don't want to go beyond?
2. North of 80 seems near the university to have a lot less multi-family, is it all students splitting SFHs?
3. Ballpark rents for a 1/1 look to be about $1000-$1200, or a 2/1 maybe $1200-$1400. There seems to be a pretty big gap between property prices and rental rates (very few properties get close to the 1% rule) which I guess means that either rents need to catch up a bit or values have appreciated due to a lack of supply. Bit of both or are there other forces at play?
Hey @Nick M. ! Welcome to Reno! I've done one house-hack in Reno and my boyfriend has done 3! I'd love to grab (virtual) coffee with you at some point and discuss the market.
1. You're definitely right about the midtown popularity growth, though some parts are cleaning up faster than others. I'd avoid going east of Wells or much further north than Ryland. The blocks surrounding Plumas down to Plumb and further south are popular.
2. NW Reno (North of the 80, West of the 395) has quite a few multi-families, but they don't seem to come on the market often. There are definitely a lot of students splitting SFHs. My property and two of my boyfriend's are in this quadrant. I'd recommend looking in this area.
3. You have to get creative to find deals that meet the 1% rule, and they'll probably be SFH. My property is a 4bed/2 bath walking distance to the university and hit 1% (2875 gross rents, 260K purchase price, bought last Aug). My boyfriend's NW property is a 5 bed/3bath, 340K purchase price, 3400 gross rent (bought last Sept). It's possible, but you'll probably be looking for 5 bedroom houses that need a lot of work. Reno is appreciating fast, but there is a LOT of demand for room rentals.
I've seen a few properties pop up on the MLS that I think could work great for a house-hack and I'd love to dissect them with you if you're interested!
I am also investing in the Reno area and would be happy to take a look at properties in the area and meet up for coffee or a chat. I've invested in a 4 plex north of 80 and our crew has almost completed the full gut needed to rehab the property. We will be renting in the ballpark of the above the rates you mentioned and are doing a combination of short term (travel nurses) and long term.
Lana has some good intel on the areas you mentioned, I drive these routes often but as I live in the Tahoe area, I don't know exactly where the lines tend to blur from desirable to less desirable.
Feel free to reach out if you 'd like to discuss any potential properties further!
Thanks for the reply and feedback @Lana Sheta . For room rentals does everyone use Craigslist or are there other services that are more popular?
I'll shoot you a DM to setup that coffee :)
I’m a local Reno & Tahoe realtor. I would love to get coffee while you are in town and answer some questions for you!
This is a great overview of the neighborhoods! Are you renting by the rooms for your houses? Prices have gone up which is why I haven't been investing since 2015...and realize Reno may be a SFH vs multi family market?
Congrats on the move! I am interested to here your take on the neighborhoods. As Lana mentioned we have some SFH in Northwest Reno, so I concur that's an area to check out (good school district, newer builds, etc). Prices have gone up though so price-hacking might be a good route initially!
@Susan Chan , yeah, all the properties are SFH rented by the room! I've looked at MFH several times and can't seem to make the numbers work given the current prices.