Real estate investing is a topic we get excited about at Mynd, especially here in our Reno office. If you’re paying attention to national trends, you know that Nevada is blowing up. It’s a great place to buy, and real estate investors are doing very well here.
Reno, however, is the Nevada city a lot of people tend to forget. It’s called the biggest little city.
Today, we’re talking about Reno’s real estate market and why investors at every level might want to consider it as a profitable place to grow their portfolios. If you’re wondering why people go there and why investors should buy there, this blog is for you.
Trevor has been in the Reno real estate market for the last 10 years. He got started here in 2010 and 2011, when Reno was not at the top of any investor’s list of hot places to buy.
Things have transformed dramatically over the last decade for a number of big reasons.
First, there’s the economy. An entire tech industry has really grown and is bubbling out into the rural areas of the market. Companies like Tesla, Switch, Intuit, and Panasonic are all bringing opportunities and growth to the city. Huge tech centers are growing and offering jobs and opportunities to people currently living here and relocating into Reno to work.
Year over year, Reno has not hit their building mark for housing, so development has continued to swell. Once those floodgates open, they’re nearly impossible to close. There’s a huge demand for housing, and investors have a great opportunity to get in on some of the impressive growth that’s occurring in this economy.
Investors need to do some serious math before they decide that a market is a good place to invest. In Reno, you’ll enjoy running the numbers and comparing results here to other regions. Cap rates are healthy and there’s a lot of potential for immediate and strong ROI. Investors can generally expect six or seven percent on their investment properties, which is double and in some cases triple what can be earned on a stock market bond. You won’t find these returns outside of real estate.
There are also some great renovation opportunities with Reno investment properties. You have old homes and new homes in this market, and a lot of the properties have not been touched and require full rehabs. This is what a lot of investors look for, because it gives you the opportunity to buy a property for cheap and invest some money into it, making it more valuable as an immediate rental and in the future when you sell.
In other markets, you might have a hard time finding similar rehab opportunities. Most homes have already been touched two or three times and there’s no wiggle room for further upgrades or ways to put more money into the homes to get more value out of them. Reno is full of such properties.
In Reno, the pool of investors is probably half local property owners and half out-of-state investors. Perhaps there are a few more from out of state. We’re seeing a lot of money from other cities, other states, and even other countries.
The recent trend has been for investors in states like California, Texas, Arizona, and Washington to sell their portfolios and buy up some property in Reno. They may have held these portfolios for 10 or 15 years, so there’s a lot of money in them. When you take all that value and do a 1031 Exchange in Reno, your returns are going to grow quickly. Asset values are at the point where if you got a mortgage in 2015, you have enough equity in 2020 to sell and make $100,000.
Some of these investments are mind boggling.
In Reno, your equity is strong, and it will rise quickly. You might buy a property that’s not quite near the market average, but as soon as you take it there by making good and smart investment decisions, you’ve set yourself up for some good profitability. You’ll have an opportunity to really make some money by renting it out.
Business is really driving the growth in Reno’s rental real estate industry, and this is an important indicator for investors who are looking for places to buy. You don’t want to go into a market that has only one industry or one source of business growth. In Reno, there are lots of businesses coming into the area, and there is no sign that the commercial activity is going to slow.
Nevada is known for its gambling industry and its tourism. Harrah’s was the first casino ever built in Nevada, and it was constructed right here in Reno. This market really isn’t known for gambling anymore. It’s more of a commercial center and an industrial park. There’s a lot of manufacturing. There’s a lot of tech companies. Start-ups are finding that this is a great place to establish a base. Multiple drivers are making this a stable and outstanding investment market.
This is a lot of information, and we have even more to share with you. Please contact us at Mynd Property Management, Reno if you want to learn more about Reno or you have any questions about buying investment properties here. We can help you identify great opportunities and we can also help you manage them.
You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.
In many ways, planning is more important than money because an experienced real estate investor knows how to work with monetary limitations. In contrast, an unskilled investor risks squandering whatever advantages they have. For this reason, every step along the journey of scaling your portfolio is also an opportunity to become a more savvy investor, which will only help you in the long run.
With a 30 year fixed-rate mortgage, you'll be able to pay a lower interest rate on your property, which will leave you with more money to reinvest.
At some point, you'll have so many properties that you won't have the time or mental resources to manage them all. Depending on the market your property is in and the level of services chosen, for 6 to 12% of your monthly collected rent a property manager will screen tenants for you, take care of rent collection, arrange for repairs, make sure you're not violating any local ordinances, and manage a slew of other issues.
You should always include vacancies in your budget, but you also want to reduce vacancies or problem tenants' likelihood in general. This is where stricter criteria for tenants can be helpful when screening to get the best tenants for your rental property. Require co-signers and several references (preferable including their last landlord).
The income you make off your investment properties should only be reinvested into your business. Don't use your new income to improve your lifestyle with new clothes, a car, renovating your own home, etc. You never know when your rental properties may need repair or when you might be hit with a vacancy. In general, you should have your savings account unrelated to your business for personal use or emergencies.
If you start by doing small deals, you'll learn what does and doesn't work for you and discover your niche. Successful real estate investors pick a niche, refine their skills over time, and become experts. As you gain experience, you can start to look for greater opportunities.
Networking is indispensable in real estate. You need to help and be helped by other real estate professionals. This way, you'll grow your knowledge base and access greater resources like reputable contractors or great deals. You'll also have more eyes and ears on the ground to track trends and new developments.
Your properties will inevitably need repairs, both big and small. For this reason, having access to trusted contractors of all kinds is a must. You don't want to scramble in the face of an emergency or have a minor repair turn into a huge undertaking because you didn't have the right contractors already in mind.
Because conventional lenders look at your debt to income ratio, eventually, you'll have to move on to commercial loans or use other forms of financing. Yes, you can have a family member, like a spouse, take the loans out in their name, but eventually, you'll run into the same issue. Having an extensive network can make finding funding easier.
Avoid shortcuts or trying to scale your investments too quickly. You can burn out, make poor decisions, compromise your resources, or leave yourself vulnerable to emergencies. That's why having a reliable network, knowing good contractors, reinvesting in your own business, gaining experience, and being frugal are essential.
Investing time in learning through books, podcasts, webinars and online forums are also essential activities.
The more properties you own, the more time will be demanded of you. Even if you're using a property management company, you can still save time in other ways. Hire a real estate CPA. Use online rental payment software to reduce late payment and tenant tensions/interactions.
By adequately delegating responsibility, you'll have more time to focus on the tasks that only you can do: making sure your business is running how you want it to and meeting your goals.
Don't be afraid to look at properties outside of your immediate geography. There are all sorts of opportunities out there! The best deals may be far away. And don't worry about managing units from afar because there are plenty of services and tech solutions to the problem of distance.
Not limiting yourself by geography also allows you to diversify your portfolio and become a more resilient investor. That's because if all your properties are in the same place, they're exposed to the same risks. If a large employer shuts down or a weather disaster occurs, all of your properties may be compromised. If you have investments across the United States, you're less likely to endanger all your real estate investments at once.
Refinancing your properties can give you more favorable loan terms and free up more resources to reinvest into your business.
A 1031 exchange allows you to avoid paying capital gains taxes. To perform a 1031 exchange, you must use the profits from the sale of one of your properties to purchase another property (or properties) of equal or greater value within 180 days or before the due date of your taxes, whichever comes first.
To lessen your financial burden and stress, you can work with one or more investors. This has both its pros and cons. While partnering may make it easier to scale your portfolio, it also decreases your income. Additionally, if your partner(s) decide they no longer want to invest, you'll have to restructure your business.
A private lender provides loans secured by real estate or a promissory note. While they charge higher rates, private lenders are known to offer loans that banks may shy away from, like rehab loans. They can also provide loans more quickly and with less documentation than banks.
These private money lenders serve an essential function for real estate investors because sometimes, you need money right away. This can be particularly important when you need the cash to get a new property right away since a private lender can cover 80 to 90% of your purchase price.
A home equity line of credit (HELOC) is a 2nd mortgage where your home is the collateral. It's almost like a credit card with simple interest. You can take out money up to a certain amount using a bank transfer, card, or check, repay it, and make more withdrawals. A HELOC can be useful when you need additional funds to close a deal or make an emergency repair.
Dig deep into the specifics of your target market. Look at jobs, median income, and home formation. By studying the area in which you're interested in investing, you're able to find tenants more effectively and cater to your marketing. Looking at school rankings and how desirable your area is to new families can help you find long term occupants.
If the house you're looking at has a roof over 15 years old, you're best off just replacing the roof right away because it's reached its best-by date. Don't ignore major repairs because they're only going to compromise your ability to find occupants and may also lead to higher costs if neglected for too long. You can't rely on your tenants to let you know when a serious job is in order.
You're going to want to keep meticulous records of your expenditures for both tax purposes and general budgeting. Additionally, knowing your past spending habits can help you scale more effectively because you'll know the monetary benchmarks you need to hit before acquiring a new property.
With each new property you acquire, the challenge of managing your business becomes greater. Every investment comes with its unique challenges, which will only sharpen your skills. The deeper you dive into real estate investment, the more capable you'll be at growing and maintaining your properties.
It's just important to remember that no one invests alone, even if they're the sole owner of their business. That's because you're always working with and learning from others, and that's key to becoming the best investor you can be.
Check out the various locations Mynd manages in, we have local teams in 19 major cities and counting. Learn more about our services today and get your free renal analysis or consultation with our local experts!
We all know that owning investment property comes with risk. There’s always a good chance that investors could fail. Sometimes, it’s not the investor’s fault at all, simply a condition of market trends or the industry in general.
In Portland, there are a few specific reasons that investors fail. Many investors who can’t succeed end up getting out of real estate altogether. We want to prevent that from happening to you. One way to start, is by finding a partner or hiring a Portland, OR property management company to assist you.
There is a really common pattern in Portland, and maybe it’s true outside of Portland as well, in which investors feel that they can and must do everything on their own.
If you don’t want to fail with your real estate investment, you need to operate with a view of the long term. This is true whether you’re investing in Portland real estate, investing in stocks, or starting a business. Lots of people read success stories about business people becoming multi-millionaires overnight. It does happen once in a while perhaps, but a lot of time investors get rich slowly and steadily over time. Be prepared to put in the work for months and years.
Investors often get excited by buying their first investment property, and they will try to self-manage that property without realizing how much time it takes and how much knowledge is required. It’s very easy to think that it doesn’t take much, and they can do everything that needs to be done on their own.
But, this isn’t always true.
Maybe an investor will have a bad experience with their resident or find out the requirements of the Portland rental rule book is way more complicated than they originally thought. The rules and regulations in Portland are so complex that the time, energy, and frustration is too much for most investors. It’s easy to forget something or misunderstand something, and then you’ve made a mistake that has the potential to be very expensive.
Landlords in Portland who are trying to do the maintenance on their rental properties themselves will find that it’s very easy to fail as well. Not only are they losing their evenings and their weekends, they’re probably not doing as good a job as what a professional and licensed vendor or contractor could do. They may not be responding as quickly as they would if they were working with a Portland property management company, and that upsets the residents.
When rental property owners try to do everything on their own, they’ll likely get burned out within three to five years. Ultimately, they’ll decide that real estate investing is not for them, and they’ll decide to sell their assets and stop dealing with it. This is a shame because if they had simply worked with partners and property managers, they could have kept the property for the long term and earned a lot more money.
If an investor purchases multiple rental properties, also known as scaling a rental property portfolio, the stakes are even higher. If you own 30 rental properties throughout Portland or even in a single building, scaling those assets will bring you huge successes. But, if you get out of the real estate investment game because you’re frustrated with how things work, you need to take a look at where your process went wrong. Were you trying to do too much?
Investors who fail often fail because they don’t run their properties like businesses. Anytime you want to run a business and you go to the bank, the bank will want to see a business plan. If you were to ask an investor if they had a business plan, 99 percent of them would say no. They know that their property is a business and they know there are laws and regulations and expenses. But, they are not putting it all together and understanding that they need an actual business plan as well.
A business plan is going to help you understand your strengths and weaknesses. It will help you leverage the expertise of other people. Don’t let your ego mislead you into thinking you have to do everything yourself. It’s not your job to lay tile or put up dry wall.
When you have a Portland property management company, you are leveraging their staff. You have access to accountants and maintenance personnel. You have qualified people to lease the property.
Most people do not buy real estate to have a second or third job.
There is not a rulebook that tells you how to run your rental property.
So, it’s a huge mistake to try to do everything on your own. There’s actually a standardized way of doing most things, and best practices that have been perfected over the years. Normally, your professional Portland property managers will know how to handle every situation that’s encountered. They’ll operate within policies and procedures and effectively run your property like the business it is.
There are a lot of laws and regulations in place here in Portland, and most of those are favorable to your residents. That’s going to make things more complicated in this business.
Don’t let yourself fail as a real estate investor in Portland. It’s very easy to succeed when you think in the long term, surround yourselves with experts, and remember to run your property like a business. Contact us at Mynd Property Management to learn how to succeed with your Portland investment property.
You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures.
Tampa is currently a hot area for investors who are looking for great properties with a lot of potential. It’s easy to be successful with Tampa rental properties. Today, we’re discussing some of the commonalities among investors who are successful in this market.
Tampa is getting a lot of national attention because it’s been identified as a great place to invest in rental properties. There are lots of great reasons to buy investment property here. People are showing up because of the beautiful weather, the proximity to beaches, and the engaging downtown area, where people can eat great food, enjoy a lot of culture, and take in professional football and hockey games.
Tampa is a great place to invest. There’s a wise saying in real estate investment circles: you make money when you buy. This is especially true of the opportunities in Tampa. You have to do your due diligence and make sure you’re making a sound investment in a great location, but it’s pretty easy to succeed in the Tampa real estate market. This makes it a great place for both new investors and experienced investors who are interested in adding to their portfolios.
When you’re choosing a Tampa investment property, consider location, condition, and amenities. You want to make sure you’re selecting a home that residents will find attractive. Do some math and make sure the rent you anticipate earning will be above your expenses. Successful investors understand that they’re not hunting for a home they’ll live in themselves. They’re looking for a property that good residents will find desirable and attractive. They need to know they’ll earn high rents and face low expenses.
To succeed, find a sound investment. If you’re not sure what’s going to make a sound investment, get to know the Tampa real estate market a little better and talk to some experts. You want to buy in a desirable area that people want to live. As the years go on, you’ll want to increase both rent and demand. Successful investments make choices that meet those goals.
You’ll notice we didn’t say anything about emotions or feelings. We didn’t say you should charge whatever you think your rental income should be. Data is more important than feelings when you’re investing in Tampa real estate. This is the most common trait you’ll find with successful investors; they treat their rental investments like businesses, and they don’t make decisions that are emotional.
Settle on a rental value that’s based on comparable rents in the area. Find out what the numbers tell you. If your investment strategy is to have positive cash flow, make sure the numbers make sense for that goal. Your location also needs to be driven by data.
Successful investors do not allow their emotions to dictate their actions. They go off the data and the numbers and they stick to their investment plans. Decisions follow a consistent pattern and they believe in their standards and systems. Plans and strategies are put into place to meet their goals and expectations. If they don’t have a necessary piece of information or they realize they’re lacking a resource, they’ll ask for help from a professional.
Make decisions based on data, not emotions. This is absolutely critical.
In Tampa, both rents and prices are increasing steadily. There are still some great opportunities to buy good rental properties at low prices, especially when you compare the buy-in requirements of other cities on the east coast of the U.S. It’s always our goal at Mynd to get the most rent possible out of a rental property. For this reason, we like to steer people towards investment properties that are move-in ready. Successful investors don’t bother buying distressed properties that need a lot of work, even if those properties are cheap. Look for a home that’s fresh and painted and ready to occupy.
A move-in ready investment property will rent faster and to more qualified residents. You’ll have a larger pool of applicants interested in the home. There’s a lot of demand in Tampa, so successful investors are raising their rental amounts steadily. Rents are going up and it usually takes two to four weeks to rent out a vacant property.
In the past, the number of out-of-state investors matched the number of local investors. Now, we’re seeing a higher percentage of investors from outside of Tampa and even outside of Florida. Everyone is hearing great things about Tampa, so we’re getting a lot more interested in this market.Many local owners are also becoming investors because they decide to hold onto their home instead of selling it. Maybe they’re upgrading and moving into a nicer property, and instead of selling their first home, they’re renting it out. This is a successful investment strategy in Tampa as well.
There’s a buzz in Tampa, and technology has helped. Mynd Property Management, for example, is in 19 regions across the country. We can leverage our data and help investors see what regions fit their investment strategy. Maybe you’ll want an investment in San Francisco that has a negative cash flow, but that’s okay because you have a handful of properties in Tampa or Houston that are achieving a positive cash flow. Before the gains we’ve made in technology, investors could not do that. Now, smart decisions can be made by educated investors.
If you would like to experience success as an investor in Tampa, please contact us at Mynd Property Management. We can help you identify an investment opportunity in the local market, or provide professional property management for a Tampa rental property that you currently own.
We also have other opportunities to connect with us and learn more about investing in Tampa. Our team has years of local experiences managing properties in the Tampa market and want to share our expertise with you!
As an investor, we all know there are expenses that come with owning a rental home. If you’re a new investor, you should think about owning a Tampa investment property the same way you think about owning a car. You’re going to get a flat tire at some point. You may not have expected it, but it’s bound to happen.
It’s the same with your Tampa, FL rental property. There are always going to be expenses. With people living in your property, you have to be prepared to pay for the wear and tear and the maintenance that comes with a tenancy. Residents will be flushing toilets and turning on appliances.
Some things will break more frequently and cost you more money, depending on who is living in your home and where your home is located.
Because of its climate and geography, Tampa has some unique expenses that are more common for investors here than in other parts of the country. We’re talking about those things today so you’ll be prepared as a property owner.
The first big expense that many investors forget to factor into their budgets is the cost of actually purchasing an investment property. You have to pay for the financing, the property taxes, and the mortgage. In Florida, property taxes are a bit higher than they are in other states. The value of a home and its corresponding taxes are re-assessed any time the property is sold. In Florida, we don’t have a state income tax, so the state’s revenue largely depends on property taxes and the transient taxes that are collected from hotels and short-term rental properties.
Insurance is another cost of doing business in Tampa and dealing with emergencies. We are always at a risk for hurricanes, so the insurance costs for your rental property may be a bit higher than they are in other parts of the country. Californians have earthquake insurance and in Texas, investors have to worry about high winds and hail. Hurricanes are the major threat in Florida, and with hurricanes come water. Even a strong tropical storm can cause flooding, so flood insurance is a legal requirement in most neighborhoods on a financed home.
These are fixed expenses for the most part. They’re generally outside of your control as an investor because you have to pay them. However, you can usually budget and estimate what you’ll spend every year on things like property taxes and insurance.
Eviction expenses can also creep up on an investor when they have a resident in place who isn’t performing or paying the rent. Everyone who owns rental property is worried about the cost of evicting a tenant. It’s a big expense, especially when you consider how many expenses are actually rolled into an eviction. You’ll have to pay court fees and attorney fees all while rent isn’t coming in at all.
The best way to avoid this expense is to do your due diligence. When you’re screening residents, do everything you can to avoid the future eviction risk.
You never want to have these eviction expenses because they’re awful and they’re also somewhat preventable. A lot of investors also forget to factor in the mental expense of an eviction. Even if you’re working with a Tampa property management company who is making the eviction has stress-free and low-cost as possible, evicting a tenant is stressful and emotional.
During an eviction, you’re also worried about the expense of residents trashing the property. Worst case scenarios will be running through your head. You have to detach. It’s easier said than done, but trust the process and remember that you’re running a business and this is part of the business. Mitigate this potential risk by screening well and putting the right person in your property. Do your background checks and talk to former landlords.
When a Tampa investment property isn’t producing any kind of cash flow, it goes from being an asset to a liability. On your P&L statement, you could start getting uncomfortable. At Mynd, we always work with our owners to avoid the potential expense of eviction.
Preventative maintenance is an expense, but it also keeps future expenses down at your rental property.
Do things proactively so you aren’t waiting for big and expensive repairs to happen. Flush your water heater and make sure it’s working. Air conditioning check-ups are really required at least once a year in Tampa. We run the air conditioning nine or 10 months out of the year in Tampa, so keeping that system in good shape is critical. You’ll pay between $50 and $85 for an air conditioning inspection and service, but you’ll avoid the potential $6,000 replacement cost.
Work with your residents to ensure they’re changing the air filters regularly. Leave extra ones for them so they remember to change them. Preventative maintenance may feel expensive, but it keeps your investment property working and ensures it’s taken care of. This saves you a lot of money and extends the life of your appliances and your property.
If you’d like to hear more about how to manage the expenses associated with your Tampa rental property, please contact us at Mynd Property Management. We’d be happy to work with you on maintaining your investment.
We also have other opportunities to connect with us and learn more about investing in Tampa. You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.
Tampa real estate investors can often be afraid of making mistakes. It’s scary to fail because there’s no playbook that tells you when you’re going to fail and what you should do when things go wrong. Once you’ve made a mistake, it can be difficult to find a way back from that error, especially if it’s a large error or an expensive problem to fix.
Small failures can be just as damaging as big ones. Today, we want to talk about the common mistakes that Tampa investors often make. Everyone has their own stories about what went wrong and how they recovered. If you’re wondering why investors fail in the Tampa rental market, it may be due to one of these common errors. Property management companies in Tampa can and should be able to help you as a property owner avoid these mistakes.
People will sometimes be in a hurry to fill their vacancy or they won’t be sure about how to properly screen an application, and they’ll place the wrong resident. This is the number one failure with investors in Tampa. When you rent out a home, your cash flow is critical. You need your residents to pay rent, and you need them to help you take care of the property.
If you don’t have a great resident, a lot can go wrong really fast. You want to avoid that mistake with a solid marketing and screening process. Make sure you’re using a thorough and consistent application, and check the credit history and an eviction history. Talk to previous landlord about their rental experience with the applicant, and make sure you verify employment and income. You don’t want to rely on a pay stub that anyone can print. Call the employers and make sure the applicants are still working there and earning the income they say they’re earning.
Look for felonies and a history of violent crimes. You want to judge their character as well as their financials; an applicant who has had physical fights with former landlords is probably not going to be a great resident.It’s amazing the turmoil you can have in your life when you place the wrong resident. When you place the right resident, everything feels normal and natural. Your entire rental and investment experience starts and stops with the resident you choose.
You want to try and evict your residents before you put them in your property. This will save you a lot of time, money, and frustration later on. There are also fair housing and discrimination laws to follow. In Oakland, landlords cannot run criminal background checks on their applicants anymore. Tampa has its own sets of laws, regulations, and best practices when it comes to screening residents.Think carefully about who you place in your property. With the wrong resident living in your investment home, you’re going to be paying for that mistake for a long time.
It’s easy to get excited about an investment property, but if it’s a property that’s going to make you house-broke, that’s a huge mistake. You want to do the math and respect the numbers so that you’re sure you’re buying an investment that will make you money. If your rent doesn’t cover your expenses or you’ve bought a beautiful property and invested extra money into it but you can’t find a resident willing to pay what you’re asking – that’s a mistake.
You need to buy right. Look for a strong cash flow. Most investors in the Tampa area can earn at least $300 a month in cash flow. More would be even better, but if you can reach the $300 per month threshold, you know you’ve avoided one of the most expensive mistakes that investors make.
A lot of investors will try to make the numbers fit any deal they want to close. Don’t try too hard to massage things to make them work. You don’t want to hope you’ll get more rent and you don’t want to take a chance that maintenance will cost nothing. When you’re looking at the numbers and the historical data, remember those statistics are there for a reason. Don’t read between the lines. Your decision should be black or white.
You need the right property management company, otherwise your mistakes will be especially difficult to manage. Look for a professional who really knows their stuff. You should be able to rely on your property manager’s advice on what to do and what not to do.
At Mynd, we offer resources and support even before you buy a property. If you ask us what we think about a property you’re considering, we will take a look at it and whether we think it can earn you the amount of money you’re hoping it will earn. We talk through your options and we provide reports and analyses that can help you make an educated decision.
If you decide to buy, we will lease and manage and maintain the home, all with your investment goals in mind.
The right property manager helps you avoid costly and common mistakes. It’s the engine pushing your train down the track. When you buy a rental property in Tampa, you’re buying four walls and a roof. The business you’re running inside those walls depends on a good property management resource.
If you’d like to learn more about how to avoid expensive mistakes with your Tampa investment property, please contact us at Mynd Property Management.
We also have other opportunities to connect with us and learn more about investing in Tampa. You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.
If you’re a new investor and you want to get involved in the Reno rental market, we have a few specific tips, a lot of advice, and a list of items for your to-do list.
Our first recommendation is that you spend some time here. Identify where you want your investments and why you think Reno properties might fit your investment goals. If you’re in another city, come out here and spend some time in the neighborhoods. There’s nothing more devastating than an owner who picks a city that doesn’t match what they want to do.
Reno is great town to look at when you’re investing. We are 45 minutes from Lake Tahoe, and the entire state is experiencing a huge amount of growth. There are an increasing number of trades and businesses, and a lot of diversity in real estate and rental properties. Homes coming up for sale on the market right now are good purchases for investors.
Define the geographical area you want to invest in and the parameters you have in place for the type of property you want to buy. Reno has a lot of sub-neighborhoods, and you could find yourself exploring communities like Somersett, Midtown, Arrow creek, and surrounding areas.
Talk to the people who live here. Find out what their favorite part of town is and why. When you’re choosing a property to buy, you want to identify a location that’s great for residents and likely to attract some great applicants. Spend some time in the neighborhood at night and in the day. Sleep there if you can, and really get to know the house you’ve purchased.
Every investor needs to know the all-in number that will ensure you break even. Your investment has to make sense, so you need to crunch your numbers and look for the right opportunity and price point before you invest.
With Reno a thriving market, sales prices are high. And, we have seen increases in value year over year. So, you need to identify what you can afford and stick to your budget. Don’t make exceptions just because you found a house that you really like. This is a business decision, not a personal decision or an emotional choice. Choose the investment that makes monetary sense. You know what kind of rent and appreciation you need to earn the return you want. There’s nothing worse than getting into a deal and being excited about it, and then after the closing you realize it might not work for you.
Get your math done.
Start with an end goal and then work backwards on your strategy for reaching that goal. You have to be certain that Reno matches your strategy and your goal. When investors get into a new market, there are a few things that the more successful property owners do.
Find partners. A lot of new investors are afraid to work with other investors, even though it can really help them. Find a mentor or someone who already owns property in the Reno market. Learn everything you can. Get in touch with experts. Other real estate investors can help you communicate with the right people. They’re a wealth of information and knowledge, and there’s no reason for a new investor to feel competitive or afraid. You might make double or triple what you’re currently making just by working better with other people.
Identify the level of involvement you want with your investment. At Mynd, we work with a lot of overseas and out-of-state investors who hand over their properties and trust that it will be successful with our Reno property management experience. Other investors who are local to the area keep hammers in their trucks and they show up at their rental homes to take care of renovations themselves. So, decide how involved you want to be – it will determine where and what you buy. You might want a renovation neighborhood or a turnkey neighborhood.
You need a real estate agent or a property manager or a sophisticated software system to help you manage the rental home. Local boots on the ground are important. Find a Realtor to write an offer for you. Work with a brokerage that aligns with what you want to accomplish. Don’t forget the Reno property management expertise that you need. In Nevada, property managers have to be licensed real estate agents. Make sure your property manager understands the local, state, and federal laws. You don’t want to get bad advice or incorrect advice.
If you’re thinking about buying investment properties in the Reno rental market, or you need advice about the Reno real estate market, contact us at Mynd Management. We love to answer questions from new investors and experienced investors. Talking about real estate investing is one of our passions, and we’d be happy to help you. Our team will run some comps for you so you know what kind of rent you can ask on a property you’re thinking about buying. Just send us the MLS listing, and we can help you plan. We’re full of resources and expertise, and we love to share what we know.
You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.
San Jose has been the heart of Silicon Valley’s tech scene for some time now. So it comes as no surprise that Cushman & Wakefield just named San Jose the #1 “tech city” in the country. But what’s interesting about their “TechCities 1.0” report, the first of what will become an annual publication, is the methodology used to make this determination. Here’s what landlords, San Jose property managers and prospective investors need to know about the report.
Based on these metrics, San Jose performs incredibly well.
So, why does any of this matter to San Jose property managers, apartment owners or investors?Simply put: these metrics provide valuable insight as to the strength of San Jose’s economy. Since 2009, real estate markets in the “Tech 25” have outperformed markets across the U.S., and San Jose is leading the way. Employment growth, absorption rates, and rent growth are all higher in San Jose than in other metro areas, including the other tech cities – great news for landlords, San Jose property managers and prospective investors.Technology is present in all cities, “but certain cities stand out,” the report notes. “In these markets, tech plays a larger role in the city’s economic trajectory. It’s also a vibe. Certain cities have the tech feel in the air, on the signage, in the conversations at the bars, in its population’s habits and preoccupations. In certain cities, tech is more deeply woven into the fabric of the city itself, and it’s dramatically shaping those real estate markets.”Indeed, San Jose’s tech sector is driving the local economy (). Companies like Google, Apple, Cisco Systems and Intel have deep roots here in the community. As a result, San Jose property managers and apartment owners are able to command premium rents—something we don’t expect to change for quite some time. The TechCities 1.0 study is just the latest evidence to that effect.Landlords, San Jose property management companies, and prospective investors can find the entire Cushman & Wakefield “TechCities 1.0” report here.
Google is notoriously tight-lipped about its expansion plans, which is why it came as such a surprise this Thursday when the tech company confirmed it has been eyeing San Jose’s Diridon Station district as a possible location for new corporate offices.But even more surprising is the fact that these won’t be any average Google offices. No. Instead, the company has ambitious plans to build a 6 million sq. ft. campus that could accommodate upwards of 20,000 new jobs. When fully built out, this would be the largest Google office complex in the world—twice the size of its “Googleplex” corporate headquarters in Mountain View.“We’re excited to have the support of the San Jose city council as we evaluate our options at Diridon Station,” a Google spokesperson said yesterday.San Jose Mayor Sam Liccardo admitted that his office had been courting Google for years. The city realized there was a tremendous opportunity to add new mixed-use, transit-oriented development around the BART station.Apparently, after further consideration, Google agrees.While the plans are not set in stone, the city has offered to roll out the red carpet to make the deal happen. This includes selling land owned by the city in order to assist Google with the assembly of the entire 240-acre area that would be needed to build the mega-campus ().
To put the scale of this development in perspective, San Jose currently has only 10 million sq. ft. of office space. Adding another 6 million sq. ft. would be transformative for the city’s economy.And it will bring San Jose’s already strong housing market to new heights. The tens of thousands of people who work at Google’s San Jose offices will need somewhere to live. The promise of Google’s high-paying jobs is sure to spark new residential development.“I wouldn’t be surprised to see speculative real estate developers gobbling up San Jose rental property before the details have even been finalized with Google,” says Mynd co-founder Doug Brien. “Investors will be eager to scoop up San Jose rental property before they get priced out.”Investors who break into the market now, or San Jose property managers and landlords who already own local real estate, will benefit from elevated rents in the short-term as supply rushes to keep up with demand. “Since it is notoriously difficult to build in the Bay Area, it could take years for these new rental units to materialize,” Brien explains.Many San Jose officials have called the proposed campus “transformational” for the Diridon district. That’s true. But it will also be transformational for the city’s housing market -- for renters, San Jose, CA property managers, apartment owners and investors alike. We’ll continue to monitor the development as new details become available.
But even more surprising is the fact that these won’t be any average Google offices. No. Instead, the company has ambitious plans to build a 6 million sq. ft. campus that could accommodate upwards of 20,000 new jobs. When fully built out, this would be the largest Google office complex in the world—twice the size of its “Googleplex” corporate headquarters in Mountain View.“We’re excited to have the support of the San Jose city council as we evaluate our options at Diridon Station,” a Google spokesperson said yesterday.San Jose Mayor Sam Liccardo admitted that his office had been courting Google for years. The city realized there was a tremendous opportunity to add new mixed-use, transit-oriented development around the BART station.Apparently, after further consideration, Google agrees.While the plans are not set in stone, the city has offered to roll out the red carpet to make the deal happen. This includes selling land owned by the city in order to assist Google with the assembly of the entire 240-acre area that would be needed to build the mega-campus ().San Jose property managers and apartment owners are already on notice. If Google’s transit-oriented tech village becomes a reality, this would have a tremendous impact on San Jose’s real estate market.To put the scale of this development in perspective, San Jose currently has only 10 million sq. ft. of office space. Adding another 6 million sq. ft. would be transformative for the city’s economy.And it will bring San Jose’s already strong housing market to new heights. The tens of thousands of people who work at Google’s San Jose offices will need somewhere to live. The promise of Google’s high-paying jobs is sure to spark new residential development.“I wouldn’t be surprised to see speculative real estate developers gobbling up San Jose rental property before the details have even been finalized with Google,” says Mynd co-founder Doug Brien. “Investors will be eager to scoop up San Jose rental property before they get priced out.”Investors who break into the market now, or San Jose property managers and landlords who already own local real estate, will benefit from elevated rents in the short-term as supply rushes to keep up with demand. “Since it is notoriously difficult to build in the Bay Area, it could take years for these new rental units to materialize,” Brien explains.Many San Jose officials have called the proposed campus “transformational” for the Diridon district. That’s true. But it will also be transformational for the city’s housing market -- for renters, San Jose, CA property managers, apartment owners and investors alike. We’ll continue to monitor the development as new details become available.
