The Truckee Meadows is ringed by mountains and federal land, so buildable lots are limited and new homes cost more to deliver than many newcomers expect. Add water rights, utility fees and wildfire building standards, and a Reno construction budget looks different from one in a flatter, wetter market.
In short: LendingStreet finances ground-up construction of 1-8 unit investor properties in Reno, Sparks and Washoe County, including spec homes, build-to-rent houses, infill duplexes and fourplexes, and small 5-8 unit buildings. Loans are sized on loan-to-cost with terms set per project, and funds are released through a draw schedule after inspections. Plans, permits, budget and builder experience drive approval.
Infill lots in older Reno near Midtown and the university can support duplexes and small multi-family buildings where zoning allows, and they rent well because they are close to jobs and amenities. Larger new-home projects cluster in Spanish Springs, south Reno, the North Valleys and the edges of Sparks. Build-to-rent single-family homes have grown in these areas as workers at the industrial center east of Sparks look for newer rentals.
Much of the land around the valley is federally managed, which limits outward growth and keeps lot prices firm. That supports rents for new product, but it also means land is a bigger share of the budget than in many markets.
Design for the tenant you expect. Workforce renters near the industrial corridors want garages, durable finishes and efficient cooling; renters near Midtown and the university trade space for location and walkability. Matching the plan to the tenant base is what makes the eventual DSCR refinance work.
New development in the Truckee Meadows Water Authority service area generally needs water resources dedicated to the project before service is approved, and that cost is in addition to sewer and other connection fees. These fees can be a meaningful line in the soft cost budget, especially for multi-unit projects. Ask the water authority and the city or county about requirements and costs before you close on land.
Timelines matter as much as cost. Water and sewer approvals, along with plan review, can take longer than framing a duplex, so build those steps into your schedule and carrying-cost budget from the start.
This example is illustrative and not a quote. A builder buys a lot in Sparks for $175,000 and plans a duplex with $560,000 in hard costs and $90,000 in soft costs, including water rights and connection fees. Total project cost is $825,000.
At 80% of cost the loan is $660,000 and the builder contributes $165,000, often with land equity counting toward that share. Terms are set per project; these figures only show how loan-to-cost sizing works.
Lenders also want to see that the finished project supports the loan. For a build-to-rent duplex, that means projected rents that can carry a DSCR refinance; for a spec home, recent sales of comparable new homes nearby. Bring both if you have not yet chosen your exit.
| Soft cost item | Amount |
|---|---|
| Design and engineering | $22,000 |
| Permits and plan review | $14,000 |
| Water rights and utility connection fees | $38,000 |
| Builder's risk insurance and other | $16,000 |
| Total soft costs | $90,000 |
Parts of northwest Reno, Verdi, the Galena area and the foothills around the valley are subject to wildfire building standards that affect roofing, vents, siding, decks and defensible space. Those requirements add cost and can affect insurance availability during and after construction. Higher sites also need to be designed for snow load. Check the local fire code requirements for your parcel with the city or county before you finalize plans.
Nothing is advanced up front for vertical work. After each stage, you submit a draw request with invoices and lien waivers, an inspector visits, and the verified amount is wired. You pay interest only on funds already advanced. Our draw schedule calculator shows how stages map to dates.
Reno's dry climate helps the schedule for much of the year, but winter cold and occasional storms can slow concrete and exterior work. Plan foundations and framing for the warmer months when you can, and keep a weather cushion in the early draws.
A Reno file moves fastest when these are already in hand.
The more of this you bring to the first conversation, the faster the review.
Bare land without plans or permits, a borrower with no building history and no seasoned general contractor, and anything over eight units are outside these programs; larger buildings belong on our multifamily loans page.
Land that still needs a subdivision map or rezoning is usually too early for these programs.
When the certificate of occupancy is issued, lease the units and refinance into a 30-year DSCR loan qualified on rent. New construction tends to have lower insurance and maintenance costs, and Nevada property taxes on new buildings are based on replacement cost, so get an estimate from the assessor. Duplexes and fourplexes usually produce a stronger ratio than single-family build-to-rent homes at Reno price levels.
If you plan to sell rather than lease, recent sales of new homes in Spanish Springs, south Reno or the North Valleys will set the target price, and an infill duplex can sometimes be sold as two separate units if it is set up as condominiums.
Our investor loans are business-purpose loans on non-owner-occupied property. Use the form below or call (877) 298-1001 with your plans, budget, schedule and water and sewer status. Statewide details are on our Nevada construction loan page.
1-8 unit investor builds: spec houses, build-to-rent homes, infill duplexes and fourplexes, and small 5-8 unit buildings.
Total project cost, meaning land, hard costs and soft costs such as water rights. Terms are set for each project.
Yes. Water rights and connection fees are part of soft costs and belong in your budget.
Plans should be complete and the permit issued or close. Projects with no plans or permits generally do not qualify.
Yes, if an experienced general contractor is running the job and the budget and schedule are realistic.
They apply in certain areas. Check with the city or county building department for your parcel.
Once the inspector confirms the completed stage, the approved amount is released under your draw schedule.
Sell the units, or lease them and move to a 30-year DSCR loan based on rent.
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