All Forum Posts by: Trevor Richardson

We are looking to solve this. What is your current mortgage? DM me if you would like and we can help run an analysis.

Yes you are going to want to do inspections without question. Is the property occupied with tenants?

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Quote from @V.G Jason:

Quote from @Trevor Richardson:

I see your criteria, but I would strongly consider looking at Nevada. It’s closest to your location. Nevada has the third lowest property taxes in the nation, no state income tax and very landlord friendly laws. No offense to Ohio but they are usually in the top 10 most expensive states for property taxes, along with Texas. Reno is considerably less expensive as an entry point compared to CA. 

I'm helping a lot of CA investors discover Reno and I'm curious on why Nevada wouldn't even be a consideration? We have severe land constraints, and Tesla is about to expand Giga Nevada to include the Tesla Semi factory which will lead to more rent and home appreciation. Our low unemployment is driving up housing prices from a lull we have been in for 18 months and we continue to have population migration from NorCal and the most expensive area in the nation, the Bay Area. Our market dynamics are optimal for real estate investing either SFR or Multifamily.

 Nevada barrier to entry is higher than this list. Believe that's the emphasis of this. You're trying to find growing areas in below median list--these are how to invest. California investors come significantly more equipped than average investors. What % of houses in Reno are available for a conventional investment loan at $360k or less? 

A small amount under $360k. However, there are deals in that range, I can’t reference it cause BP will flag and delete posts where I reference transaction details. I get a note about self-promotion. If you have questions DM me and I can share. 

If your lifestyle supports it, multifamily (house hacking) is a great way to start building wealth. Starting in November you can put 5% down on up to 4 units. Pick an area where fixing up and selling a 4-plex makes sense. The property will need work done to it to make this work.

Purchase the 4-plex and begin to fix the units you are not in and rent those out for their maximum rental amount. After a year or so, fix the one you have been living in and grab an agent who knows how to sell investment properties, list and sell the multifamily (completely renovated 4-plex) with its new cash flow. Multifamily investments sell cash flow, not ARV. It's a 4-plex flip play.

I see your criteria, but I would strongly consider looking at Nevada. It’s closest to your location. Nevada has the third lowest property taxes in the nation, no state income tax and very landlord friendly laws. No offense to Ohio but they are usually in the top 10 most expensive states for property taxes, along with Texas. Reno is considerably less expensive as an entry point compared to CA. 

I'm helping a lot of CA investors discover Reno and I'm curious on why Nevada wouldn't even be a consideration? We have severe land constraints, and Tesla is about to expand Giga Nevada to include the Tesla Semi factory which will lead to more rent and home appreciation. Our low unemployment is driving up housing prices from a lull we have been in for 18 months and we continue to have population migration from NorCal and the most expensive area in the nation, the Bay Area. Our market dynamics are optimal for real estate investing either SFR or Multifamily.

Quote from @Alexander Yates:

Haha I felt the same way reading this thread from top to bottom! This is great insight for our already strained market. Will be interesting to see how it plays out. Cheers!

Thanks. Yea I believe investors buying now are going to look smart in a couple years. We are going to have some serious housing issues, those who own real estate her will enjoy the appreciation coming. 

Crazy, one day I’ll figure out how wholesalers have such a pull on legit investors. There are straight forward investments that hit the market that are probably similar or better with tons less risk than trusting these types. 

Just curious what was the original ARV?

Quote from @Carlos Ptriawan:

Quote from @Kristina Krich:

Quote from @Trevor Richardson:

Quote from @Brian G.:

@Trevor Richardson can you give me an example in the current market of what the price point is on a small multi (2-4 units) B class in Reno along with gross rents? Curious. Thanks!

How would we figure out rent based on these charts? What type of tenants do you get out there?  Thanks!

 Us the cap rate to estimate rent. The sheet that Trevor sent is amazing. You can for example, filter Class B only and select the highest cap rate that's available.

That’s correct. We keep it updated daily, when new properties come in we underwrite them. When properties sell or go pending they are out of view. So we always have every property calculated every day for our clients.

Quote from @Osazee Edebiri:

Quote from @Trevor Richardson:

California investors should really check out Reno before heading east. It’s closer to you, is a very stable market and right now has great deals for multifamily. 

Real estate taxes don’t reassess on the sale, insurance is low and we continue to have increased in migration, jobs (no state income tax) and our own land constraint issues which prevent the market from getting overbuilt.

 I think Reno can be a good market. Although if I were to think landlocked Reno vs Bay Area cities it would not have crossed my mind I am curious about this. What are the land constraint issues which prevent the Reno from being overbuilt? 

I have been snowboarding for years, have seen the growth of city over years and always felt like expansion was very open. 

Good question. I’ve included 3 maps below at the same altitude. The first is of Reno with all rental housing mapped. That shows how our housing is built to our 360 degree constraining mountains. The valley here is only 15x20 miles. Reno can’t sprawl.

The other two markets (Boise and Vegas) I’ve shown here at the same scale show the amount of buildable flat land where the market can sprawl naturally like markets in Texas or the East where the Sierras aren’t choking the market. 

I hope this explains our severe land constraints that are a real problem. I lot of incoming developers and investors think Reno has a lot of easily developable land. Hopefully these visuals show how difficult that is.