All Forum Posts by: Chris Moton

Reno Multifamily Report Q3 2023

It is time for a new quarterly update on the Reno, NV multifamily market. The reno multifamily report dives into sales data, rental rates and trends, and market information. Message me for a link to the Reno Multifamily PDF Report.

This report contains information solely based on the small multifamily (3-10 units), large multifamily (11+ units) and duplexes (2 units) within the Reno area. The report covers neighborhoods all over the Reno area. Below you can see the specific neighborhoods and their boundaries.

Below are the rental trends by unit type (*DATA PROVIDED BY JOHNSON PERKINS GRIFFIN APARTMENT SURVEY):

Below are the multifamily $/unit sales trends (*DATA PROVIDED BY WASHOE COUNTY ASSESSOR):

Small multifamily (3-10 units) had a simple average of $181.6k per unit. There were 37 units total sold during the second quarter and the total dollar amount of sales was $6.6m. Below you can see the percentage of the areas in which units were sold.

*data provided by washoe county assessor

Large multifamily (11+ units) had a simple average of $209.6k per unit. There were 286 units total sold during the second quarter and the total dollar amount of sales was $59.8m. Below you can see the areas in which units were sold.

*data provided by washoe county assessor

Duplex (2 units) had a simple average of $223.2k per unit. There were 30 units sold during the second quarter and the total dollar amount of sales was $6.7m. Below you can see the percentage of the areas in which units were sold.

*data provided by washoe county assessor

The rental market in the Reno/Sparks area experienced a slight increase in rental rates in Q3 compared to the previous quarter, decreasing by $8 to $1,653. Seasonally, Q3 is usually a high point but this average is $1 less than in Q3 of 2022 showing leveling off of the market.

The overall vacancy rate increased to 2.73%, indicating there is still strong demand for rental properties in the area, but it is important to keep in mind the rent rate and vacancy data only include 80+ unit properties that are stabilized at 90% occupancy. There are several new projects taking a prolonged amount of time to reach stabilization and we believe underlying vacancy for the entire market, to include smaller buildings, is higher. Many new properties in the lease-up stage are offering concessions and we have noticed a higher than usual surplus of rental listings.

Below you will find the total new multifamily units:

*data provided by Johnson Perkins Griffin Apartments Survey

The number of units planned or under construction for multifamily properties increased slightly to 10,620 units. The most significant obstacles to new supply continue to be the limited availability of developable land, rising prices, and increasing construction costs.

*data provided by Johnson Perkins Griffin Apartments Survey

*data provided by Johnson Perkins Griffin Apartments Survey

Meanwhile, on the demand side, job growth remains robust as more corporations seek to expand or relocate to the area. Nevada has seen a high influx of inbound moves, which may be driving demand for housing. Furthermore, affordability concerns in the single-family housing market have further elevated the demand for multifamily properties.

Thank you for taking the time to read my post. Please feel free to reach out if you have questions or would like to discuss investing in the Reno, NV area.

Reno Multifamily Investors: Off-Market Deal Available

We have a great off-market multifamily deal available in Reno, Nevada. This value-add opportunity is perfect for investors looking to add a cash flow property to their portfolio.

GRI: $144,000 CAP RATE: 5.7%

Contact us today for a full investment analysis.

#RenoMultifamily #OffMarket #ValueAdd

Are you interested in investing in real estate but don't know where to start? Address Income is a brokerage that specializes in investment properties in Reno, NV. We have the tools and resources you need to make informed investment decisions, build a successful real estate portfolio, and achieve financial independence.

🔍Be the first to know:

We have the ability to underwrite any property on the market within 15 minutes. This gives you the information you need to make a strong investment decision, before anyone else.

🏘️Build your real estate portfolio:

We offer a comprehensive service that includes multifamily and single family advanced analysis. We work with investors of all experience levels to help them find the right properties for their portfolio.

🧠Expand your knowledge:

We know that real estate investing can be daunting, especially for first-time investors. That's why we offer tools and resources to help you learn everything you need to know to be successful.

💵Live with financial independence:

Our goal is to help you create a passive income stream that will allow you to live the life you want. We will work with you to find the best investment opportunities for your needs and goals.

🌐Explore the market:

We are a great resource for investors who want to invest in the Reno, NV market. Even if you do not live here locally we can still help you purchase a property here if it fits in with your goals. We want to work with all investors around the world.

🎉Cheers to real estate investing:

We believe that real estate investing is a powerful way to build wealth and achieve financial independence. With our help, you can crack the code to real estate investing and achieve your financial goals.

📲Contact us today:

To learn more about how Address Income can help you invest in real estate, contact us today. We would be happy to answer your questions and help you get started on your journey to financial independence.

💻Visit our website:

To learn more about Address Income and our services, please visit our website at www.addressincome.com

Agree with a lot of what has been mentioned here already. I can only speak intelligently about Reno, NV. There are many reasons Bay Area investors come here. Here are some of the big ones:

1. Growth - NV is still friendly to business and a lot of companies (Tesla, Google, Apple, etc) have moved their distribution, manufacturing, data centers here in recent years and there’s more to come. Population is also growing steadily.

2. Proximity - we are an easy day trip from the Bay.

3. Taxes - property taxes are some of the lowest in the country and do not reassess on the sale of the property.

4. Tenant laws - very different from CA and no rent control.

The downside is our yields are now about what they are in many parts of CA. Despite that, as Jake mentioned earlier, we are seeing some of the best deals we’ve seen in years for cash buyers.

Reno is just one of many great places to invest. I know every location has its own benefits, you just need to find one that is a good fit. Best of luck!

Understanding what new and planned construction does to the current rental market is important for any investor. That is why we are dedicated to providing this information to Reno investors so that they can stay up to date on the market and trends.
Visit https://www.addressincome.com/data-center/reports to view our Q2 report
#rentalrates #quarterlyresults #multifamilyinvesting #construction #renorealestate #investor

Craig, there are several ways to estimate value. You can look for sales comparables that would be similar to your property with the improvements complete and use that or an average of several. If you make improvements that allow you to increase your rents, another option is to apply a Gross Rent Multiplier to get an estimated market value. The GRM is market metric you select based on the market you are in and the property type, location in the market, condition, etc that you multiply by your gross rents to get to an estimate. You can do something similar with cap rates but in that case you would be estimating your expenses as well. In any case you need to know your market and what properties are selling for with regard to comparables and/or financial metrics.

Generally speaking, yes, adding bedrooms and square footage usually more impactful than just paint and flooring but not always and adding that stuff is much more permit intensive and expensive.

Why sellers should seek help from real estate agents

Multifamily owners, we've got your questions covered. Let Address Income guide you through the process of selling your property.

Visit us at https://www.addressincome.com/multi-fam/list-with-us to learn more about listing your multifamily property with us

Centrally located Reno duplex with excellent investment potential

This spacious 2-bedroom duplex is located in the center of Reno, just steps from highways, shopping, and all that the city has to offer. The property features two well-maintained units, each with its own private yard and storage shed. Tenants will also enjoy the large deck, perfect for entertaining or relaxing.

This is a rare opportunity for an investor to maximize potential returns through property improvements. Prospective owners also have the option to live in one unit and rent the other, providing a steady stream of income.

Visit us at https://www.addressincome.com/... to learn more about this listing

Single-family investors are a prominent force in the real estate market. As of 2023, about 27% of single-family transactions in the United States were real estate investors. This is a significant increase from previous years, and it is likely to continue to grow in the future. This trend is similar to what we are seeing in Reno, Nevada.