There are different investment properties in Reno, Nevada to choose from. What works for one person, can be wrong for someone else. Do you know how to determine which Reno real estate investments are best for you?
There are different investments that people will be attracted to and that will best work for them. Simply put it, each property type has its pros and cons. The amount of money you want to spend on each property and the time you wish to dedicate to each, will help guide you in making a decision.
Below we will look at popular real estate properties, so you can decided the right type of investment properties for you in Reno Nevada.
Before we get started. If you are looking to buy investment properties in the Northern Nevada area, you are in the right place. We help both new and experienced investors in Reno, Nevada succeed in Real Estate, by providing the most helpful tips and information available. We also help people find the perfect property so the can achieve their goals. We also provide property management services to all our clients.
Let us know what you are looking for and we will find it for you. Including off-market deals. Contact use today for a free consultation to see if we are right for you.
With that being said, lets dive into it.
The most common type of real estate investments are single-family rentals. Single-family homes attract more renters. Since they are more attractive to renters and families, people usually rent them long term. Bringing your long term leases which will lower your vacancy rates. They are also less complicated to manage with the right know how. If you decided to liquidate your portfolio, they are easier to sell. They also appreciate higher over time when compered to other property types. Also they are generally more stable.
Single family rentals do require a higher amount of maintenance and repairs. Due to their being more structure and land. You can minimize your overheard buy buying turn key properties. They also requires more upfront cost since they are more expensive to purchase. You can always find off-market deals that will allow you to get a better value.
Depending on the size of your portfolio, you can have a big hit to your budget. Consider how this will impact you financially. When a tenant moves out, you will be stuck with the monthly payments (if you are financing it) and all utility costs. Including having to pay the HOA fees if applicable. However, you can cut these cost down if you are able to market your rental ahead of time and find a new tenant to occupy the unit.
Consider all of these pros and cons before you jump into this type of investment properties. If you are well prepared and plan ahead, you can reduce your risks.
Multi-Family properties typically require a bigger investment and more work, but the benefits are more than doubled. Having multiple tenants under one roof is a great way to maximize your investment and increase ROI (Return On Investment). One property bringing you more income. You will have one central location where all of your units will be located which will reducing traveling time and costs.
When you have multiple tenants, you can reduce your overall vacancy rates. It is less likely all tenants will move out at the same time. So you can have a more reliable source of income from the property.
Just remember, more tenants will bring more problems, complaints, maintenance repairs and time to collect rent. The larger your portfolio, the more chances you will have a tenants who fails to pay rent. Also, you will have to deal with more evictions.
Getting the right tenant in place will reduce the chance of this happening. As your portfolio grows or if you do not want to deal with the hassle, think about getting a property manager to assist you in managing the property. Getting the right tenants to occupy each unit is key to a successful multi-family investment.
Depending on what state you live in, commercial property is considered 3 or more units. These type of buildings require different types of financing than residential homes. They may also require different types of insurance. Commercial real estate is usually purchased by experienced investors because it requires a higher amount of knowledge and capital.
Just like multi-family units, you will be able to maximize your investment by having more units under one roof. More tenants paying you rent and a more control central locations. This property type will help you increase your portfolio and return on investment.
As stated above, more units can bring you more problems. You will have to deal with more maintenance cost and request. The more upkeep requires can increase your overhead and operating costs.
You will have to maintain the building if you wish to attract and maintain the best tenants. So it is a good idea to plan ahead and think about keep separate funds dedicated to improvements and upkeep. Adding more features, benefits and incentives is a good way to increase occupancy rates. For example, a raffle for a free TV to tenants who pay on time.
Apartment buildings need a lot of effort, time and money. If you take the right steps, you will be able to succeed with very little issues. It can become extremely costly if you make mistakes. This is why most landlords decided to hire a property management company to help them with their day to day problems. Factor this in when deciding if this is the right type of investment properties for you.
Wholesaling has become popular in the last couple of years. The point of wholesaling, is you might not need to buy the property to make money from it. The goal of wholesaling is to contact a buyer and assign the contract to them for a fee. Profits can be low at first, but as you become more experienced you can gain more profits.
Be careful not to advertise the property for sale without a real estate license where the property is located. Also, check to see if your state or local laws allow wholesaling.
This is not for everyone, but if you are OK with networking, it is a possible option for you. If you decided to get into wholesaling and you want to find buyers to buy your contract. Contact us today. We have a network of buyers and investors who will buy the contact from you
Flipping houses are still popular even if the tend has gone down. There’s still much profits to be made in a growing market like Reno, Nevada. As a result flipping properties is common in the area.
If you want to successfully flip a house, you should have a general idea what houses are selling for. Research the market or get help from a local Real Estate Agent to help you understand the market. It will also be helpful to have a general knowledge of construction cost and idea of what it will cost to rehab a property.
Also, get an idea of how much time it will take to complete the rehab so you can create a budget and put a plan together. Doing this will increase your chances of making a profit.
When you want to flip a house, make a back up plan just in case things go wrong. It is possible for investors to have their profits lowered because the house didn’t sell or if multiple issues occur.
Factor all of this in when determining if this property is for you.
Buying land is a good way to start investing in real estate. There is little to no maintenance or repairs, not bothered by tenants. Buy land requires less money to get started. For less money you can by a lot, develop it into commercial or residential properties, buy it near an up and coming area hold on to it some in appreciates in value and subdivide it into small lots to sell.
Just remember that all land is not good land. Always do your research when you’re looking into buying land in Nevada or any other area. Contact someone who has experience buying and selling land.
More people are choosing to skip staying in a hotel or motel when they travel. As a result, more people are choosing to rent a house. When you live in an area where there are a lot of tourist or travelers, buying a vacation rental can be a good option for you.
In some cases it is possible to make more in a week than you would renting the property to the same tenant on a typical lease. A rental property can bring in more money and could maximize your return on investment if you turn it into a vacation rental.
Looking house that is in a popular area. For example, something that is near the beach, lake, has many local events or is generally a popular area for tourist (Like Reno, Vegas, Lake Tahoe, New York, San Diego, etc.).
If you take the right right steps and take the time to consider the right type of investment properties for you in Reno Nevada, you could be on your way to financial freedom.
Investing in real estate can sometimes be difficult to understand and there are many questions to be answered.
That is why many people decide to work with us when it comes to investing in real estate in the Reno, Nevada area. We help all of our clients through the entire process from start to finish. Providing much needed information and support throughout. We are also a valuable resource after you purchase your property.
For a free no obligation consultation to see if we are right for you contact us today.