All Forum Posts by: Trevor Richardson

Reno investors this video is for you, check out our exclusive multifamily investment opportunity listing 1449 Hillside Dr. The video link shows a walkthrough of the entire property along with a break down of the cash flow, rents, and return for investors. Watch the video here 

https://youtu.be/vHa_f3iEWaY?feature=shared

It is time for a new quarterly update on the Reno 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 $210.4k per unit. There were 55 units total sold during the second quarter and the total dollar amount of sales was $11.94m. Below you can see the percentage of the areas in which units were sold. (*date provided by Washoe County Assessor):

Large multifamily (11+ units) had a simple average of $241,134 per unit. There were 751 units total sold during the second quarter and the total dollar amount of sales was $189.1m. 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 $255.3k per unit. There were 22 units sold during the second quarter and the total dollar amount of sales was $5.62m. 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 Q2 compared to the previous quarter, increasing by $17 to $1,661. Seasonally, Q2 is usually a high point but this average is $19 less than in Q2 of 2022 showing leveling off of the market.

The overall vacancy rate decreased to 2.19%, 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 Apartment 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):

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.

What are you trying to do? Buy their property (for your interest) or represent their interests (like list the property) and get the the highest price?

What your going to want from title research is basically a clear path to hold clean title free of encumbrances, liens, and anything else that could cloud the title.
 
The title/escrow company won’t provide insurance on the close like a standard transaction. You will have to figure out how to “clear the title” without a typical escrow. Talking to a real estate attorney before would be a wise step. 

Here are a few of the biggest things we look for.

- 1st deed sale - if you are buying a 2nd deed you will have to pay off the first. You want to avoid this. This is critical in making sure you are buying the right note going to the auction. You have to make sure the note going to sale is a 1st deed of trust.

- Pending Litigation (Lis pen) - This means there is pending litigation. If you buy the foreclosure you are going to get looped into this so this is typically a “pass” property. 

- Liens - And any liens or back taxes that you would need to settle after you win at the steps. So if there is $14,000 between those two you would take those off the max bid. Or if there is a $60k mechanics lien maybe it’s a “pass” property.

Real estate investors, here is the problem with investing calculators made popular on sites like on Bigger Pockets. They can only calculate the viability of one property at a time, and they can’t take into account the wider market conditions.
We have a solution for investors. In Reno we just calculated over 1,300 single family home listings using 6,000 SFR rental comps to determine the the best investment opportunities. In addition we have all 40+ Reno multifamily listings completely analyzed. We call it Total Market Analysis and provide this view of the market to our clients.
Total Market Analysis - It’s what institutional investors do to buy the best opportunities using rent data, analytics and criteria. We are a brokerage that provides that for YOU.
Interested in finding out more about Reno’s most innovative real estate brokerage for investors, check out addressincome.com
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I miss anything courthouse steps veterans? I know you are out there.

1. Find source of auctions coming up

2. Build a model to manage and underwrite those properties coming to auction

3. Research and underwrite the properties while keeping the list up to date on the properties coming up

4. Going to need a lot of title research, flip and construction numbers, rental data and ARV data

5. Drive the properties right before the auction to finalize your construction budget

6. Pull out straight cash in cashiers check for the auction day (if your max bid is $400,000 you need to take $400,000 out in cashiers checks) to the courthouse. Better have your numbers, max bids and research 100% complete. If you make a mistake there is no going back if you win a bad deal

7. Hope one of the properties comes up and under your max bid…many properties that you worked a lot on will cancel or never go to auction

8. You will need to outbid other really experienced investors there, it’s nasty at the steps, they don’t like rooks

9. You probably don’t get something and have to get the nerve back up to continue the above process day after day till you do win a property

Good luck!

I do. 

1. Find source of auctions coming up

2. Build a model to manage and underwrite those properties coming to auction

3. Research and underwrite the properties while keeping the list up to date on the properties coming up

4. Going to need a lot of title research, flip and construction numbers and rental data

5. Drive the properties right before the auction to finalize your construction budget

6. Pull out straight cash in cashiers check for the auction day (if your max bid is $400,000 you need to take $400,000 out in cashiers checks) to the courthouse. Better have your numbers, max bids and research 100% complete. If you make a mistake there is no going back if you win a bad deal

7. Hope one of the properties comes up and under your max bid…many properties that you worked a lot on will cancel or never go to auction 

8. You will need to outbid other really experienced investors there, it’s nasty at the steps, they don’t like rooks

9. You probably don’t get something and have to get the nerve back up to continue the above process day after day till you do win a property

Good luck!

A wholesaler cannot do anything with a on-market listing. Wholesalers tie up off-market deals then try to attract investors to that off market deal and essentially collect a fee (commission) to assign the contract to the investor. On market deals are visible to those same investors. There is no value added. 

How much is this 3-day event?