All Forum Posts by: Trevor Richardson

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. 

Attention qualified real estate investors in Reno!

Join us for a casual coffee and investing insights into the Reno real estate market, trends, rental rates, and learn about our powerful tools that can help you locate the best real estate investments.

There are only 6 spots open, so please RSVP below. 

Date: Friday, November 3rd Time: 9:00 AM Location: Hub Coffee (South Reno)

What you'll learn:

• The latest Reno real estate market trends
• How regional and national housing trends affect Reno
• Insights into the most profitable investment strategies
• How to use our data-driven tools to find the best Reno deals
• Single family or Multifamily investments pros and cons
• Tips for maximizing your returns

Who should attend:

• Experienced or New real estate investors
• Qualified investors who are ready to purchase a home or multifamily property in the next year
• Anyone interested in learning more about the Reno real estate market

This is not a wholesaling event. We are simply providing information and tools to help you make informed investment decisions.

Space is limited, so RSVP today!

We look forward to seeing you there!

To RSVP follow this link and select a time - https://calendly.com/brad_buxton/reno-real-estate-investors-...

Based on analysis of all 89 active single family home listings (10/24/2023) in the Fernley submarket, we have found that cap rates are settling around 4.5% to 5%. This is due to a combination of factors, including:

Stable rental market (TESLA): The Fernley rental market is very stable, with low vacancy rates and strong demand from renters, largley from Tesla factory workers. This makes rental properties in the area a good investment.

Rising interest rates: Interest rates are rising, which is making it more expensive to borrow money to buy investment properties.

If you are an investor considering purchasing a single family investment in the Fernley market, it is important to keep in mind that cap rates are settling around 4.5% to 5%. This means that you should expect to earn a return of 4.5% to 5% on your investment, after accounting for expenses.

I answered both your questions but got flagged. I think it was a link so I sent you a DM.

Below is every 2-4 unit multifamily on the market in Reno. You can see the variations highs and lows in cap rates as well as $/sf and $/unit. 

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.

Single Family Homes Cap Rates in South Reno Submarket

Based on analysis of all 74 active single family home listings in the South Reno submarket, we have found that cap rates are settling around 4% to 4.5%. This is due to a combination of factors, including:

Stable rental market: The South Reno rental market is very stable, with low vacancy rates and strong demand from renters. This makes rental properties in the area a good investment.

Limited supply: There is a limited supply of single family homes available for rent in the South Reno submarket. This is driving up rental prices and cap rates.

Rising interest rates: Interest rates are rising, which is making it more expensive to borrow money to buy investment properties. This is also contributing to lower cap rates.

If you are an investor considering purchasing a single family home in the South Reno submarket, it is important to keep in mind that cap rates are settling around 4% to 4.5%. This means that you should expect to earn a return of 4% to 4.5% on your investment, after accounting for expenses.

Math

My speciality is housing which includes single family investments and multifamily investments, so my commercial input is limited. But I have several friends that do commercial. 

I can’t see how this doesn’t bolster industrial which has been on skyrocket trend for years here. Reno does not manufacture any other vehicles so it will be interesting to watch how it impacts industrial. Office has been slow like in most markets, retail has been recently tremendous in Reno. 

So I think it will have a positive impact on all the above but will affect housing the most. 

Proximity to the Fremont plant is huge, as it allows Tesla to easily transport components and vehicles between the two facilities. The speed and availability of industrial development land at the Tahoe-Reno Industrial Center is also a major advantage. Reno/Sparks is and always has been a logistics hub for the costal states. Its right between Seattle and San Diego which makes supply chain a day drive to any major West Coast metro. 

I would also add that Nevada's pro-business climate was a factor in Tesla's decision to locate its Gigafactory in Reno. The state has a low tax burden and few regulatory restrictions, which makes it an attractive place to do business.