Do you want to invest in Real Estate in Reno, Nevada? If you want to invest in Real estate in Reno, Nevada you are in the right place. We are here to help you with that. We help both new and experienced investors succeed in real estate. We provide much needed knowledge for all investors. In this particular blog post we will talk about how to determine which Reno real estate investments are best for you. So you can make the best decision and make the most money without any additional stress.
There are different types of investors. Some like to be hands-off as much as possible and just collect the income. Others like to be hands on and manage everything themselves or a mixer of the two. You can hire a property manager or assistant to help you either way. However, if you want to know which type of investments in Reno, Nevada is right for you, you have to know the pros and cons for each because what appeals to one person, may not appeal to anyone else. So lets start determining which invest property is right for you.
Most people wish to start with single-family investment properties. For the most part they are pretty much straight forward and do not require a lot of knowledge to get started. These types of investment are good for people who want to manage one unit under each roof. You will only be responsible for one particular issues. For example, one AC, heater, roof, plumbing, electrical problem, etc. Single family properties also tend to hold their value more since they are appealing to most renters.
The pros for a single-family unit is the ability to be rented faster, easier resale value, potential tax benefits (always talk to a tax professional), higher quality tenants on average, you do not have to worry about your tenants getting into it with one another.
The major con for single-family units are a higher cost per unit. If you factor in your ROI (Return On Investment), you will be paying more overall. Single-family houses cost more, and your have your money tied up in one unit under one roof. You also have to deal with landscaping and HOA fees. You will also incur high vacancy cost for single units. You can read a more in depth blog post about the pros and cons of single family investment properties in Reno, Nevada.
Muti-family properties are starting to become more popular in recent years. Due to single family prices taking a dramatic rise. Although each unit typically rents for less, they provide a higher potential to produce income by achieving a higher return on investment. In Nevada, multi-family properties consist of 2-3 units under one roof. Anything more will be considered commercial.
Multi-family homes are perfect, as you will always produce revenue from the other units even though one unit is empty. For a single-family house you produce no revenue while the property is empty. Other pros include less exterior maintenance cost, no HOA fees, convenience.
Cons of multi-family homes include additional work dealing with a higher number of tenants, higher turnover, more difficulties getting financing, harder to resell down the road and more risks. For more information read our blog post on the pros and cons of multi-family investing in Reno, Nevada.
Multi-family homes are a great way to make a good profit when done right. If you are considering multi-family properties, contact a real estate professional who can help guide you through the process.
Commercial Real Estate
Real estate investors with more experience purchase commercial real estate. There are many benefits investing in commercial real estate. Tenants usually take care of the property, longer rental terms lowering vacancy rates, professional interactions and very little after hour calls.
Getting a loan on a commercial property is more difficult. Commercial loans usually require you to have a higher down payment. Since there are higher upfront costs, most investors work with one or more partners to help with these expenses. Commercial real estate has more liability so you will have to have every in proper order.
You will also need to know an extended amount of knowledge that goes beyond residential properties. If you are considering commercial, make sure you calculate your numbers correctly so you receive a profit. Contact a commercial real estate agent to help identify good investment opportunities. You can also get more information on our blog post about the pros and cons of commercial property investments in Reno, Nevada.
Land investment is more for people looking for a long term buy and hold portfolio strategy. Taxes typically lower than residential or commercial properties since there is no existing structure. There are many strategies that included: buying and hold until it appreciates, buy and develop, buy and flip it when located in an growing area or divide it into smaller lots and sell each at a profit. During the holding period there will not be any income and unless you bought it in an up in coming area, it will have a slow appreciation overtime. You also need to make sure you do your due diligence when buying land. There are many pros and cons in land investments. Even if the initial investment it is low, it could cost you more down the road if done wrong. Contact someone who is licensed to help you purchase land in Northern Nevada.
Mobile homes can be a good investment for investors looking for a much lower down payment. It’s necessary to look at the property’s location, occupancy levels, and maintenance costs because they vary when compared to permanent structures. Evaluating a mobile home can be difficult. If you plan on buying one, make sure you get a proper inspector to look it over.
REITs better known as Real Estate Investment Trust, are more for people who want to invest without having to doing much of the work themselves. A REIT is a corporation that manages a portfolio of properties. Anyone can buy shares in a publicly traded real estate portfolio. By investing in a REIT, you are able to own real estate without ever having to be a landlord. You will be able to invest in large-scale projects as well as smaller developments. There are many different types of REITs, so do your homework so you can choose the one that is right for you.
When done correctly, investing in real estate can be a great way to earn wealth. Whatever sort of investment property you are interested in, our team is ready to address all your questions!
Investing in real estate is one of the best ways to build wealth. No matter which type of investment property you are interested in, our team of professional Real Estate Agents are ready to answer all of the questions you have.