There's an influx of retirees buying up homes and renting them as investment properties, all while prices to rent soar.
Kristin Gandolfo is extremely busy these days. She is a property manager and realtor for Clark Real Estate and Investments
"We are renting the majority of our homes before they are even available," said Gandolfo.
They are seeing a migration of retirees from California flooding the housing market, often times buying homes with all cash because of the disparity in pricing between California’s home prices and Northern Nevada’s.
"A retiree can sell a 3 bedroom, 2 bath, 2 car garage home that is maybe worth a million dollars today. Come over here and buy a better home for $300,000 or $400,000 and then invest the rest of the money in income producing property," said Rick Clark, Co-Owner of Clark Real Estate.
Even with more people buying properties to rent, there's a shortage of homes for rent that is driving up monthly rates to more than the market has seen in years.
"This particular property would have rented for around $1,800 and today it is renting for $2,500 and it is flying off the shelves," said Gandolfo when referencing a rental home in Damonte Ranch.
Home prices in the area have risen nearly twenty percent in the last year and the increase in rent prices are not too far behind. Any slowdown is unlikely due to the current shortage of houses, which are proving to be a safe investment for now.
"The rate of return compared to a lot of other investments in the country right now is pretty favorable," said Clark.
Clark says investors are making the housing market incredibly competitive so an adequate down payment and pre-approval is necessary to buy a property before someone else.
