All Forum Posts by: Bradley Buxton

 You can use census or USPS data to track migration. 

In Reno we are seeing some of the best deals on single-fam and small multi-family since 2010. Similar to the situation you describe where the cash flow isn't great but the equity building is where the returns will be.  Most of these are in A-B areas with a few in C.   There is a Tesla Factory being built and no significant housing starts will cause a greater housing shortage in the area.  People that are selling now generally have to sell so they are willing to make deals.  That said there are still seller holding onto the 2021 prices and hoping. 

Do you have you have to stay in SD?  

What other areas have you considered? 

@Katherine have you check out the Reno market? With the Tesla factory being built, no new housing starts, and sprawl limited by geography, and it's proximity to Lake Tahoe it's a market worth a look.

 Have you checked out the Reno NV Market?  Job growth and equity growth coupled with being close to the highest income area in the country there is good equity growth. Cap rates are in the 5-7% range. We have over 1300 properties analyzed and the data.  

I agree with Bob there is a risk hoping to cash flow in the future. Here in Reno it's an appreciation market where you are gaining more equity in the home than cash flow. This means if you sell the property in 1 year after buying then you lose per month but get it back after the sale. A buy and hold or flip type situation.  IF you are living in the house and renting a room or part of the property to cover the cost and it doesn't cover all the costs the negative cash flow is actually just your portion of the payment.  At our brokerage we work with almost exclusively with investors and we are seeing some buying properties that do not cash flow.  It is not ordinary but there may be creative tax situations where having a property (business) that loses money would be beneficial in other ways.  

Landscaping is important to fit into the neighborhood.   Driveways are good but keeping in mind it's a rental there are who are water and maintenance considerations.  

Did you ever get your project built? We are curious around the office how your experience has been building ADU with getting city permits in Sparks. Was it easy or were there a lot of barriers?

In Reno we are getting a lot of interest in the Reno market from Bay Area Investors.  While the intial cash flow is not as high as say Tennessee, but investors are looking at the equity in addition to the cash flow. I have found several properties in emerging areas that will cash flow and build equity.  The equity is building is due to companies building factories like Tesla and other Silicon valley firms moving to Reno.  Send me a message if you want to check out a list of the top properties in the Reno / Tahoe area. 

Rooms, ADU, garage conversions are the most obvious but also cost intensive. Depending on the age of the unit adding a bathroom can be a simple and less expensive way to add value. Also improving the landscaping and curb appeal will command a higher rents.