I mostly run away from encounters from one place to another because I can't fight them!
That seems to be your problem right there.
And, hold on... level 2 in Reno?
It seems you are in too much of a hurry.
Have you completed all available quests in Klamath, The Den, Modoc, Vault City and Gecko?
If you did you should have been more than level 2 even before leaving Klamath.
I'd suggest you go back and take your time in those cities - Reno is designed for higher level characters.