Multifamily properties are more popular than ever in Reno, driven by a massive residential demand for units of all types. With the influx of people coming to Reno to live and work in the past few years, there’s never been a better time to invest in multifamily real estate here.
Whether you’re looking for a new multifamily owner or planning to add another property to your portfolio, NAI Alliance’s Multifamily Team is here for you. Our homegrown brokers and agents have kept their finger on the pulse of multifamily real estate in Reno, understanding it inside and out.
With decades of real estate experience, we deliver personalized solutions tailored to your needs, maximizing the value of your investments.
Buying a multifamily property differs from purchasing single-family residential units because you must account for the needs of multiple families, not just one. So, the first step of the multifamily real estate purchase journey we’ll walk you through is onboarding and strategy creation. We’ll talk about your investment goals and the property type you’re looking for, based on unit count, unit mix, and rent bands.
Instead of mortgage lenders and retail banks, like residential properties, you’ll need to go to specialized multifamily lenders like Freddie Mac and Fannie Mae or larger banks to finance multifamily properties. We’ll walk you through the entire preparation process, from providing tax returns to naming personal guarantors, all the way up until you receive the loan pre-approval.
With access to industry-standard commercial real estate reports on rent growth and occupancy, we’ll find the right submarket for your needs. For instance, Downtown is better for walkable properties, Northwest Reno is great for workforce housing, and Sparks has newer properties you can choose from.
If you’re looking for single-family homes, you can look on MLS and Zillow. For multifamily properties, we’ll help you find the perfect candidates through CoStar and Yardi in the submarkets you’re interested in. We can also call or mail smaller apartment owners who may not put their properties up for sale on online listings.
In single-family residential purchases, you may have heard of a CMA scorecard that contains the list price, home condition, and expected retail value. For multifamily properties, we’ll prepare pro formas showing your current vs stabilized NOI, renovation budgets, and rent-up timelines.
Unlike single-family residential, multifamily tours have a broader scope. While we’ll walk you through the property’s various residential unit types, we’ll also show you its common areas, including laundry facilities, mailrooms, parking areas, and other amenities such as gyms and pools. We also arrange meetings with on-site managers to ensure that your questions about the property are answered, helping you build your shortlist.
After you’ve picked a property from the shortlist, next on the list is to draft and submit the Letter of Intent (LOI). Generally, this step is somewhat similar to drafting a purchase agreement for single-family homes, but with a longer due diligence/inspection period because there are more things to do when inspecting larger multifamily properties. We’ll guide you through the process to ensure nothing is missed when you submit the letter.
Due diligence for multifamily properties requires more effort than for single-family homes, as there’s more to do and more ground to cover. That said, we’ll help you with environmental assessments, building systems inspections, and American Land Title Association (ALTA) surveys to ensure the property is ready to purchase.
Once the property is ready to close, we’ll send the inspection and appraisal reports to the lender to finish the financing process. We’ll also help you get all the relevant insurance policies to ensure you and your property are properly covered.
Last but not least, we’ll help you close on the property. For single-family homes, you’ll receive the keys, and you’re all set. However, with a multifamily unit, you’ll need to take some additional steps. We’ll guide you through the closing procedure, from transferring leases and manager contracts to signing the deed with Washoe County authorities. We’ll also help you kick off any value-add renovations if you schedule one during the process.
The shift in Reno’s multifamily landscape is like no other – the massive demand for units of all types has been driven through the roof by a myriad of factors.
In the past decade, people having been coming from all over the country to live and work here. This has led to a tug-of-war between market forces driving prices and rents higher versus sociopolitical responses seeking to enforce rent controls, protect tenants, avoid a housing crisis.
Whether you’re interested in becoming a multifamily owner or a seasoned owner looking to reassess your portfolio, the Multifamily Team at NAI Alliance has the knowledge and experience to take you step-by-step through the decision-making process.
Our advisors have extensive experience helping clients make sound investments through the market’s peaks and valleys.
We leverage our extensive market experience to deliver customized solutions that attract the right partners, enhance your business strategy, and maximize the value of your investment.
You don’t strictly need a real estate agent to purchase multifamily real estate properties, but you may benefit from one because they can access listings that aren’t publicly available, helping you find more prospective properties. They can also guide you through the purchase process and ensure it goes smoothly.
Whether multifamily or single-family residential properties are better for you depends on your risk appetite, budget, and a host of other factors. Review your investment goals to choose which kind of residential property is best for you.
Multifamily properties in Reno can be a lucrative investment, as more people have moved to Reno since the pandemic to work from home and enjoy the lower living costs. Additionally, multifamily construction rates have increased, meaning there are more properties in the city for you to purchase.
The kind of multifamily property you should buy depends on how many tenants you want in your property, your budget, and your risk appetite. For instance, apartments can accommodate more tenants while being generally more expensive, whereas duplexes may be more affordable but can only accommodate two households.
You may need to hire a property manager for your multifamily property because handling it yourself can be a multifaceted and complicated task that may become overwhelming. Additionally, hiring a property manager means you can go hands-off on your property, allowing you to invest in other properties.
