Nevada real estate is blowing up! It’s a great place to buy and real estate investors are doing very well in Nevada. Reno is often referred to as “the biggest little city” and is the Nevada city a lot of people tend to forget.

Here is the important information on why investors at every level might want to consider investing in Nevada real estate.

Strong Economy and Industry

First, there’s the economy and the tech industry has grown into the rural areas of the market. Companies like Tesla, Switch, Intuit, and Panasonic are all bringing jobs and growth to the city. Huge tech centers are growing and offering jobs and opportunities to people currently living here and relocating into Reno to work.

Year over year, Reno has not hit their building mark for housing, so development has continued to swell. Once those floodgates open, they’re nearly impossible to close. There’s a huge demand for housing, and investors have a great opportunity to get in on some of the impressive growth that’s occurring in this economy.

Numbers Make Sense with Investment Properties

In Reno, you’ll enjoy running the numbers and comparing results here to other regions. Cap rates are healthy and there’s a lot of potential for immediate and strong ROI. Investors can generally expect six or seven percent on their investment properties, which is double and in some cases triple what can be earned on a stock market bond. You won’t find these returns anywhere else.

There are also some great renovation opportunities with Reno investment properties. You have old homes and new homes in this market, and a lot of the properties have not been touched and require full rehabs. This is what a lot of investors look for, because it gives you the opportunity to buy a property for cheap and invest some money into it, making it more valuable as an immediate rental and in the future when you sell.

In other markets, you might have a hard time finding similar rehab opportunities. Most homes have already been touched two or three times and there’s no wiggle room for further upgrades or ways to put more money into the homes to get more value out of them. Reno is full of such properties.

Out of State and Local Reno Investors

In Reno, the pool of investors is probably half local property owners and half out-of-state investors.

The recent trend has been for investors in states like California, Texas, Arizona, and Washington to sell their portfolios and buy up some property in Reno. They may have held these portfolios for 10 or 15 years, so there’s a lot of money in them. When you take all that value and do a 1031 Exchange in Reno, your returns are going to grow quickly. Asset values are at the point where if you got a mortgage in 2015, you have enough equity in 2020 to sell and make $100,000.

In Reno, your equity is strong, and it will rise quickly. You might buy a property that’s not quite near the market average, but as soon as you take it there by making good and smart investment decisions, you’ve set yourself up for some good profitability. You’ll have an opportunity to really make some money by renting it out.

Business is really driving the growth in Reno’s rental real estate industry, and this is an important indicator for investors who are looking for places to buy. You don’t want to go into a market that has only one industry or one source of business growth. In Reno, there are lots of businesses coming into the area, and there is no sign that the commercial activity is going to slow.

Nevada is known for its gambling industry and its tourism. Harrah’s was the first casino ever built in Nevada, and it was constructed right there in Reno. The local market really isn’t known for gambling anymore. It’s more of a commercial center and an industrial park. There’s a lot of manufacturing. There’s a lot of tech companies. Start-ups are finding that this is a great place to establish a base. Multiple drivers are making this a stable and outstanding investment market.