Buying an investment property in Nevada is a financially wise decision. And not only because it's a valuable asset that can provide you with a significant passive income. On top of that, it can be a stress-free occupation. You can run a rental business any way that suits you. However, to ensure everything goes smoothly, it's better to choose the location carefully. Both local and long-distance landlords face different challenges and enjoy different benefits. Before you decide, it's best to consider both options. With that in mind, we've decided to examine both possibilities and help you make the right choice. So, local vs. long-distance investing: which is better for Nevada landlords?
How to make the right decision?
Firstly, before you start searching for the right property, you need to ask yourself a few questions. Knowing the answers will help you make up your mind and make a sound decision. So, ask yourself the following questions:
So, what are your financial goals? Do you want to get out of debt, gain independence, or accumulate wealth? To answer this question, you need to first assess your current finances. Then visualize where you want to be in the next five, ten, or twenty years. Knowing this will help you focus your investing in the right direction.
Choose the right market
Next, you need to decide on the right market. For example, you might want to have a high rent-to-value ratio. In that case, you should choose a cash-flow market that will provide you with valuable income. Or, if generating the cash flow isn't your priority, you might want to choose a market with a potential for long-term appreciation. Lastly, hybrid markets offer a mix of both options. Of course, what you decide on depends on your long-term goals.
Self-management or using property management?
To determine your real estate strategy, you need to answer this question. Maintaining the property and dealing with tenants can be pretty overwhelming at times. From the potential renovation of the property to tenants losing their keys for the n-th time, self-managing demands a lot of effort and work.
However, some landowners prefer to be in charge and gladly take on these responsibilities. If that is the case with you, there is no dilemma. In local vs. long-distance, local investment property is a clear winner.
On the other hand, if you'd rather hire a third party to manage your property, both options may work for you. In that case, the key is to find an experienced property management company you can rely on. Whether you choose a local or long-distance property, you'll be able to save both time and effort while they manage your rental business for you.
Local investment property
Now, let's have a closer look at what you can expect from buying a local investment property.
Familiarity with the market
The first and most obvious advantage is that you're more likely to be familiar with the market when you're investing locally. Every local market is unique, and knowing little flows and trends can help you invest in the right property. You'll know all the local attractions and amenities that are likely to attract tenants. However, doing proper research is still a must.
You'll have more control
This is crucial for many landlords in the local vs. long-distance dilemma. While it's not impossible to manage your property long-distance by yourself, it's certainly more demanding. On the other hand, you can choose a more hands-on approach as a local landlord. For example, you can meet with your tenants when necessary, show your property in person, and perform an inspection of the property.
You can hire local contractors when necessary
When you delve into investing in real estate, you're bound to need contractors at some point. Whether you want to remodel that fixer-upper or need some repairs, finding the right contractors locally is much more manageable. Firstly, you can choose them yourself and ensure they're suitable for the task. Secondly, they're less likely to try and take advantage of your absence.
Long-distance investment property
However, long-distance investments also come with their own set of advantages and drawbacks. Let's have a proper look.
A wider range of investment opportunities
Depending on where you live, your local market might not be able to offer you what you want. What if you need cash flow but live in an appreciation market? On the other hand, if you don't limit yourself, you can opt for a more profitable market with a higher return on investment.
If you find the right property in other parts of Nevada, you might even want to relocate there! If the business proves very lucrative, this might be an excellent idea. However, if you want to live nearby, ensure you plan your long-distance relocation with care. From packing your belongings to hiring trustworthy movers - many tasks will require your attention!
Use a property management company
Of course, you can do this on a local level, too. However, limiting yourself may lead to losing some excellent opportunities. And if you plan to hire property managers in either case, a long-distance investment can be a better choice. There are many reasons to hire property managers! Although it may seem a more expensive option at first, it can save you money in the long run. Especially if you don't have a lot of experience - they'll ensure your tenants are satisfied and your property in good condition.
You can use your property for a variety of purposes
While your goal is mainly to rent your property to tenants, you can also use it as a vacation home in between. Or, your kids can use it when they start college - no accommodation worries! And lastly, you might choose to relocate or retire there someday.
The bottom line
As you may see, there are many things landlords should consider when it comes to local vs. long-distance investing. Both options come with their unique advantages and issues. However, once you know your long-term goals and preferences, you'll be able to make the right choice.
Meta description: Buying the right investment property is not an easy task. Find out which is better for landlords - local vs. long-distance investing!
There is a lot to consider when it comes to moving out of your rental. Whether you have been there for a long time or just a short while, multiple things can determine if you get your security deposit back or not. Always make sure that you take your time to consider all possibilities and sort them out before you officially move out. The issues that your landlord might consider deal-breakers could be as small as a few leftover nails in the wall or as big as broken furniture. With some cleaning hacks, you will be able to relax and have no problem getting all your money back.
Preparing to move out
If you have ever rented a car, you’ll remember that you needed to do an initial inspection of damages so that you do not get charged for them afterward. The same rule should apply to an apartment or house rental. If you have done this before signing a lease for your home, it will make your life a lot easier once you decide to move out.
1. Make sure you clean the oven
Unless you do not come near your stove due to your less-than-enviable cooking skills, the kitchen is the area where you will have the most significant amount of work. You know very well how much damage oil splatters can cause and what a pain they are to clean. Almost everyone will agree that they hate cleaning the oven with a passion. Who can blame them—it is extremely difficult to do, it demands some serious contortionism, and even after you clean it, it still looks dirty.
Procrastinating with this task, though, can create quite a messy situation, and you want to take care of it before you move out. An easy cleaning hack is to make a baking soda paste by mixing it with water and then spread it all over the oven. Leave this overnight and simply wipe it clean in the morning.
2. Don’t overlook the fridge
This is the home of lots of spills, stains, and bacteria. If you empty it and unplug it without cleaning, it will be a nasty sight—and smell. A bowl of baking soda overnight will take care of the smells for you. One of the best cleaning hacks is to use a vinegar solution and spray it all over the refrigerator. All the stains and grease will come off surprisingly easily.
3. The walls will need a lot of love
Your walls can go through substantial damage even if you do not hang any pictures on them. Simple, everyday activities can leave stains and marks on the walls that you will most certainly need to take care of before moving out. To clean stains, use white toothpaste with a paper towel or a rag. If you have removed nails from the walls, fill in the holes with toothpaste as well, or use the traditional nail hole fillers and even out by scraping the excess with a wet knife.
4. Try out these cleaning hacks for the floors
Any lighter shade of carpet will be susceptible to stains. To clean these, use a mix of hydrogen peroxide and some lemon juice. Spray the solution on the stained area and leave for a few minutes. After that, scrub it with a brush. For dark carpets, use a solution of white vinegar and a few drops of dish soap and water. If your hardwood floor has scuffs, use a tennis ball or an eraser and apply a bit of pressure while rubbing the surface. This magic trick will save your security deposit.
5. Give the bathroom a good scrub
You may have noticed some stubborn stains in your bathtub. They usually form from shower and hair products build-up, but also limestone. Most cleaning products will not get rid of them, so why not try a mix of lemon juice and salt? Scrub on the area until it magically disappears.
Moving cross country?
If you are currently renting in the state of Nevada and are planning an interstate move, consider hiring a moving company. After you have finished your thorough cleaning and you got your full safety deposit, these professionals will save you a great deal of trouble and help you transfer from the state to wherever you are moving. Especially if you are relocating for the first time, you will be more than grateful for the assistance of experts. You might get overwhelmed by the amount of planning and organizing that needs to take place. With professional movers, you will rest assured that everything will be arranged for you perfectly.
Additional useful tips and cleaning hacks to keep in mind
It is very easy to overlook details when moving out of your rental. Your landlord might be a lovely, honest person, but they also might be digging for ways to deduct money from your safety deposit.
Meta description: Learn some great cleaning hacks to help you get your security deposit back offered by the experts at Clark Real Estate.
Photos by Pexels
Let's start with the scope of things. Just how much could the Tesla Gigafactory ignite Reno's economy and housing market?
Here we see why they don't call it a factory, but a gigafactory:
Let's just talk in terms of physical size. What does a structure that size do to an economy? It brings immediate jobs in the construction of the structure, it maintains jobs as a whole workforce is needed to run that place, and then it brings tourists--because Reno is now on the map and has one of the wonders of the world (so to speak!).
So what does that mean for your real estate investment portfolio?
If you have any real estate in the Reno area, hold it. Now is not the time to sell, unless you're converting up into more units. If your properties are frustrating and not bringing in a profit, consult one of our property agents. We are happy to give you some pointers on making your investment a success.
If you don't have any real estate in the Reno area, let's get started. The Tesla Gigafactory is scheduled to bring in 6500 jobs ranging from lower-level manufacturing to higher-level engineering and technology. That means a range of incomes and housing needs.
Just about ANY rental properties will be a good investment at this time. Look for properties close to major highways, and units that cover their cost today, with the ability to improve and raise the rents in the future.
Fix and Hold and Flip Properties:
Nevada mandated that at least half of the workforce at the Tesla gigafactory needs to be Nevada residents. The other half will need a place to call home! Assume that much of the other half will be higher level engineers, scientists and inventors. While Reno is striving to offer the best in Sciences and Engineering education, the Tesla factory will need the best of the best in 5-6 years. Look at properties with that timeline in mind. What improvements can be made to a property with a 5 year budget, and with a tenant in place for much of that time? Look for neighborhoods with artists and innovators; neighborhoods that are just starting to show improvement is where you'll find the bargains. Start your improvements on the exterior of the property to further advance the revitalization of the neighborhood.
Let the professionals do the day-to-day maintenance and management of your property. It is going to take 5-10 years before we experience the influx of revenue and jobs that Tesla promises. If you are living out of state, there's no reason to take on the hassle of managing your new Reno real estate. With a 5-10 year timeline, it's time to get comfortable, and we can help! With our proven track record of filling vacancies and maintaining properties, Clark Real Estate can turn your real estate investing dream into a reality.
“The present is theirs; the future, for which I really worked, is mine.”
― Nikola Tesla
There's a spark, a current, of electricity and excitement in the Reno air as business owners and property owners imagine the possibility of the Tesla Gigafactory coming to town. There is much discussion about state-offered incentives and benefits. Will it be approved? Will the benefits be worth it?
We think so.
In real estate we see the value of new businesses infiltrating a city. We see how home values go up as the supply of inventory is more in demand.
Further, we see how new companies bring in new revenue, that is spent in local restaurants, boutiques and salons. New money helps the local economy, and new people bring a sort of awakening to a community.
We've noticed how new energy invigorates a neighborhood. New and improved landscaping, fencing and front doors suddenly dot a once rundown street.
At Clark Real Estate, we are excited about the possibilities of co-branding with the legendary Tesla. Nikola Tesla* was an underdog who never gave up on his dreams. Reno has been coined an underdog, and now it doesn't have any excuses to give up on a brighter future.
Engineer and physicist Nikola Tesla (1856-1943) made dozens of breakthroughs in the production, transmission and application of electric power. He invented the first alternating current (AC) motor and developed AC generation and transmission technology. Though he was famous and respected, he was never able to translate his copious inventions into long-term financial success—unlike his early employer and chief rival, Thomas Edison. [History.com]
Clark Real Estate offers Sparks and Reno property management services for landlords and homeowners out of state and out of town. Maximize your investment dollars by investing in Reno/Sparks! Keep enjoying the Southern California lifestyle, while we take care of your money-maker in Northern Nevada!
When I bought my first home in Sparks, NV, I didn't realize I would be moving to Southern California.
Clark Real Estate
305 W. Moana Ste C
Reno, NV 89509