Apple is doubling its investment in its planned Reno data center.
Have people invested in Reno or in other areas where Apple/Google have big data centers? Does the data center business generate enough employment to consider investing in RE in these areas ?
I was looking at Reno properties the other day. Looks like the going rate is 6 cap. Like this one:
http://www.loopnet.com/Listing/19942164/1740-Stewart-Street-Reno-NV/
8 unit building asking for 780K.
They aren’t a big job creator. It’s mostly physical security jobs.
That was my impression too - that once you hook up the infrastructure you only need routine inspections.
Each unit seems to be about 250 sq ft. Isn’t a 6 cap rate a little less for Reno? What kind of tenants would you get?
I have no idea what kind of tenants you’ll get. I was just trying to see what’s typical cap rate in the area. If I remember right @elt1 said you can get 6 cap in Tahoe? Or is it 8 cap? I forgot.
With multi-fam you are not shooting for rich tenants anyway. I didn’t do the division and 250ft seems awfully small.
Here’s another small one, duplex for 240K. Cap rate 7.8%.
http://www.loopnet.com/Listing/20291658/484-E-8th-St-Reno-NV/
I wonder if the $15 min wage in CA will push rent up in Reno? That’s a potential upside.
What about the GIga factory? That will help right?
It’s quite a bit east of Reno
They 8 unit building in Reno hasn’t sold…8 studios for $100k more than I paid in Tahoe and my building has 4 two bd units, a 3bd house one 1bd bderoom and one studio…Definitely overpriced…Reno market is over heated.
How much do you think that 8 unit in Reno should go for ? 650k?
I don’t like studios…Get the wrong kind of tenant and high turnover…Means lots of money spent on vacancies, evictions and repairs…Of course in a rent control city, high turnover can be good…
I own 1 studio in my building, has turned over 4 times in a year…One of my 2 bedrooms has a tenant that has been there 6 years…Which would you rather have??. .Of course I am in a resort town…Cheap rent studios attract short term tenants…I roll with it…Can get $1000/m in high season, $700/m in low season,
I think 2 bedrooms are the best with mybe a few 1 bedrooms…In Tahoe you can get a min $900 for ones and 1300 for 2s
At first I was wondering where Apple was reno-ing a datacenter.
You know you’re obsessed with RE when you read Reno as “reno”-vate.
Geez… you need to see a shrink…
