Buying a MF property in Nevada or Arizona

[Abhishek Joshi]

Hello,

We were considering buying MF unit <4plex ideally > and were considering Arizona or Nevada as potential options. I wanted to see if this group had opinions on:

1. Which is the stronger market, with a relatively attractive price point for entry.

2. Are there any particular areas folks would recommend ?

3. Any referrals given we would be out of state, and would need to depend on a partner for both buying as well as PM services.

Thanks a lot for your time and inputs!

[Cassidy Klundt]

Hey Abhishek - I have the same goals and target markets. Happy to share a bit of what I've uncovered if it helps. 

Rent to price ratio in NV particularly LV and Reno are pretty solid (20+). Depending on the area though, you can see YoY rent decrease, which seems to be a bit concerning. Need to take that into account. That said if you're looking for the Tier 1 cities like PHX or LV, you're likely going to face steeper pricing and/or more competition. With a strong network of brokers, a sponsor, nothing you can't crack into -- and per some feedback I've received on BP from veteran investors, they'd always suggest to look at logistics and proximity first. Hope that helps. If you are wanting individual cities in NV - I could probably shed more light on recent discoveries. Happy to share notes. Let me know what cities and areas you're considering as you dial things in. Take a look at Tier 2 markets as a part of your research. I'm finding some value in doing that.