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Success is not always guaranteed when investing in real estate. In many instances, success is determined by factors specific to the city in which the owner is investing. Trevor Steadman is our guest today. He is the Portfolio Manager for Mynd Property Management in Reno, and he is going to give us his top five reasons investors have found success buying and renting a property in Reno.
Steve Rozenberg: Hey everyone. My name is Steve Rozenberg and I’m with Mynd Property Management and I’m here with Trevor Steadman who is the portfolio manager for the Reno division of Mynd Property Management. Trevor, thanks for being here today, I appreciate it.
Trevor Steadman: Thanks Steve. Thank you for having me, as always. Always fun to talk shop in the property management industry. What do we have today?
Steve Rozenberg: Absolutely. So what I want to talk about today, and this is something… I’m an investor, I’ve been in this for a long time, I’ve had my ups, my downs over the years like most investors have. In the Reno market, what do you think are the top five reasons that investors actually are successful in Reno?
Trevor Steadman: Great question. The first thing rents are on the rise. If you look at year over year, even quarter over quarter, we’ve seen consistent increase in rental prices that are drastically tied to demand. As we have a huge influx of people coming into town, there’s only so many rental properties to actually rent so that price is increased, which obviously affects the bottom lines for investors. And it’s been consistent, I don’t see any slowdown coming anytime soon. Luckily we’ve had some stabilization in the market in the last six to eight months, which is fantastic, but it’s still on the up and up, which is great.
Another one, there’s still deals to be found in the resale market. Reno has kind of been a buy and hold city for many years. Last 15, 20 years, investors have bought properties before the crash, they’ve held onto it and now they’re finally above water. And so when those properties finally come to market, there are actually some good deals to be found for the right price.
We still have really good strong landlord laws and eviction processes in the state of Nevada. Some of the fastest lockout orders can be issued in the state, which is a huge plus to investors who need to get rid of pesky tenants and residents. And there’s also good cap rates for mixed use, single family and multifamily properties. If you did a market analysis of what it was available today on the multifamily market, you’d have less than 10, the demand is so high for that little niche. And that’s because the cap rates are so good in that part of the market.
And then also just in general, the changing business landscapes. We have Google, Tesla, Switch, Panasonic, all these companies that are bringing in employees and their families into the region and we have to adjust for that. They’ve said they’ve projected six or 7,000 jobs over the next couple of years and we only have a couple thousand homes to give them. And so because of that, the rental demand has to make up the difference. So that’s where we’re seeing that strong push on prices and demand.
Steve Rozenberg: You know what’s interesting is, is all these things that you talked about, I never heard anything about emotion. I never heard anything about why you feel it’s good. Everything you had and that you said, which I think is important if you’re an investor and you’re looking at Reno is its data. The numbers are saying it makes sense. You’ve got a lot of stability, you’ve got a thriving economy, you’ve got… The no state income tax obviously is a great reason for Nevada. There’s a lot of things. Obviously you’ve got close to Reno, you’ve got Tahoe, so you’ve got the ski resorts, you got the Reno Air Races. I mean it’s just, you got a lot of stuff up there, which is great because you get a lot of variety there but you may not have the bubble that you may get in other high profile cities. Like Las Vegas took a big hit on the profile of the last crash. But Reno I think was not as affected, correct me if I’m wrong.
So again, you’ve got a lot of stability but you also have a lot of things that are giving you reasons that it’s growing. I mean Tesla, Google and all of those reasons right there tell me that that is a great market. So Trevor, thank you so much, if somebody wants to actually talk to you more specifically about this market and how they can get in and maybe start finding deals and, and talk to you about managing their properties, how do they do that?
Trevor Steadman: Easy enough, have them give me a call, my number is 775-335-0124 or shoot me an email, email@example.com. And then we can help you out with what you need. Reno, and this is a great Reno plug, we’re at 30, 45 minutes from Tahoe and three hours from the Bay. You can’t get any better than that.
Steve Rozenberg: You don’t get any better than that. They used to call it the biggest little city, I believe. And for those of you that want to join our Facebook group, go to the Mastermynd Real Estate Investment Club, that’s a Facebook exclusive. We don’t let everyone in. Just we want people that want to learn and be investors. You engage, I’m in there. Trevor’s in there.
There’s people in there talking, conversing, talking about real estate, about getting deals, how to find deals, how to evaluate deals with webinars and other stuff. It’s just a great place for you to be able to learn without the pressure of thinking you have to buy something.
So go to Mastermynd Real Estate Investment Club, and if you just want to check out our website, go to mynd.co, M-Y-N-D.co. I’m Steve Rozenberg, Trevor Steadman. Want to thank you guys for watching and we’ll talk to you guys later.
Trevor Steadman: Thanks.
Steve Rozenberg: Bye. Bye.
Many investors have found serious success in Reno, Nevada. Much of this success is based on factors specific to Reno, itself. For example, with an influx of residents from California and elsewhere, rents have been on a steady rise and are not predicted to fall in the foreseeable future. This has contributed to major returns for many Reno investors. There are also many deals to be made in the resale market, allowing investors to buy property for the right price.
Likewise, there are many laws that still favor landlords and the eviction process in the state of Nevada, giving investors more of an incentive to take the leap into investing and keep their head above water when dealing with tenant disputes.
Cap rates have also been great for investors in Reno, particularly for mixed use, single family and multifamily properties. This is also helped by the influx of business to the Reno area, where companies such as Google and Tesla are expected to create six to seven thousand jobs over the next few years alone. Given these factors, it is no wonder why so many investors have found true success in Reno’s growing market.