Is Reno, Nevada getting gentrified like SF or parts of LA? (2014, rental)

[robertpasa]

I've read rants from people in Reno whose rent is $600 but it's going up because hightech companies are opening things in Reno. Is it because those companies have employees who hate paying high rents in California?

Perhaps the companies themselves hate paying high rents and taxes in California.

Is there a typical pattern of gentrification in Reno just like SF in the 1990 or certain parts of LA? More wealthier people move into poor neighboorhoods, poorer (often custodial people) people have to move out. More fancy frothy coffee things.

Isn't Reno often an alternative to SF or LA because of lower rents?

[Uschiulrich]

I Very recently moved to Reno and am paying more than $1,000 a month in rent. It is a pretty nice neighborhood though.

[adr3naline]

Buddy of mine recently moved to Reno to work in tech and buy properties pre-Tesla boom. He's convinced it's the next hot bed for flipping.

[jm1982]

Originally Posted by adr3naline

Buddy of mine recently moved to Reno to work in tech and buy properties pre-Tesla boom. He's convinced it's the next hot bed for flipping.

Interesting , what price points is he buying at.

[jm1982]

I never really hear of Reno being an alternative to SF or LA more than anywhere else.
For sure if a lot of tech businesses move into an area and its sustainable it can change things
In LA it's said the tech companies have pushed prices up even higher in certain areas in the "Silicoln beach" area

[2sleepy]

Originally Posted by adr3naline

Buddy of mine recently moved to Reno to work in tech and buy properties pre-Tesla boom. He's convinced it's the next hot bed for flipping.

I wouldn't want to try to flip homes in Reno unless they were on the lower end of the price range, like under 250k, housing prices are going up but wages aren't that doesn't bode well for continued increases unless for some reason all of a sudden employers start rushing in to start businesses there.

[Mia775]

Originally Posted by robertpasa

I've read rants from people in Reno whose rent is $600 but it's going up because hightech companies are opening things in Reno. Is it because those companies have employees who hate paying high rents in California?

Perhaps the companies themselves hate paying high rents and taxes in California.

Is there a typical pattern of gentrification in Reno just like SF in the 1990 or certain parts of LA? More wealthier people move into poor neighboorhoods, poorer (often custodial people) people have to move out. More fancy frothy coffee things.

Isn't Reno often an alternative to SF or LA because of lower rents?

Probably because our state government is so willingly selling it's people out with all the tax breaks and incentives that you can't get elsewhere.

Just look it up, Nevada is one of the best states to incorporate a company in whether or not you are actually planning to operate here. If you do start a physical business here, there are plenty of accommodations for your business... not so much for the employees or the people who already live here.

Sure, the rents might be lower but so are the wages.

[adr3naline]

Originally Posted by jm1982

Interesting , what price points is he buying at.

$150-175k/ea, then adding ~$15k in upgrades. Just two properties at this point.

Originally Posted by jm1982

I never really hear of Reno being an alternative to SF or LA more than anywhere else.
For sure if a lot of tech businesses move into an area and its sustainable it can change things
In LA it's said the tech companies have pushed prices up even higher in certain areas in the "Silicoln beach" area

I wouldn't say Reno is all that attractive to Tech. From what I read, it's Tesla's new factory driving the flux in interest. They'll be using their Giga factory to house a lot more talent than just factory workers which will pull some $150-200k jobs from SF & LA, and you can just imagine how far that goes for Reno's COL.

Originally Posted by 2sleepy

I wouldn't want to try to flip homes in Reno unless they were on the lower end of the price range, like under 250k, housing prices are going up but wages aren't that doesn't bode well for continued increases unless for some reason all of a sudden employers start rushing in to start businesses there.

He's early in his flipping game so his investments stay beneath $200k/property. He sees it as a 3yr rental and then cash out. I thought he was crazy for moving to Reno of all places, but the joke will be on me.

[2sleepy]

Originally Posted by adr3naline

$150-175k/ea, then adding ~$15k in upgrades. Just two properties at this point. I wouldn't say Reno is all that attractive to Tech. From what I read, it's Tesla's new factory driving the flux in interest. They'll be using their Giga factory to house a lot more talent than just factory workers which will pull some $150-200k jobs from SF & LA, and you can just imagine how far that goes for Reno's COL.
He's early in his flipping game so his investments stay beneath $200k/property. He sees it as a 3yr rental and then cash out. I thought he was crazy for moving to Reno of all places, but the joke will be on me.

Maybe your friend bought these properties in 2012 or 2013? There are no desirable properties to 'flip' in Reno for under 200k. Most are run down shacks that you can't get a loan on, or ugly half-plexes in North Valley. But you don't have to take my word for it: https://www.redfin.com/city/15627/NV...max-price=200k

As far as the 'giga factory' attracting 150-200K salaried tech sector employees from SF & LA, I am highly dubious about that, they make batteries there, they don't develop software or design cars. Here are the salaries that Tesla promised when they got the perks from the State for building the facility in Northern Nevada.

Full-time staffing for the gigafactory will comprise of:

• 4,550 production associates paid $22.79 per hour
• 200 material handlers paid $22.79 per hour
• 460 equipment technicians paid $27.88 per hour
• 360 quality technicians paid $27.88 per hour
• 930 engineers and senior staff paid $41.83 per hour.

So, the highest paid employee, an engineer will make around $82,000 a year. That's good for Reno, but it is not proof that Reno is a flippers paradise that will attract tech sector employees making 6 figure salaries, that in my opinion is reckless claim.

[jm1982]

Was reading a bit about Reno . Does sound interesting . Looks like midtown is the gentrifying area , it does look like an area that appeals to hipsters .. Which is usually good for price appreciation .


MidTown District Reno
Not sure if that's the area your friend is buying in