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.
Spend Some Time in Reno
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 Your Investment Parameters
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.
Consider Your Investment Numbers
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.
Common Traits of Successful Reno Real Estate Investors
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.
Know the local market or find someone who does. 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 Property 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.