Turnkey market in and around Richmond Virginia?

Question

Hi everyone,

I've been reading and learning about the different ways to invest in real estate for a few weeks now.  I finally got my hands on a little money for a 20% downpayment=closing cost and a little money to operate.  I'm a little skeptical as to how to proceed with my investment being someone that owned both a successful and a failing business.  The idea of a turnkey operation sounds like a good way to start (Is it really?).  On the other hand, overseeing a renovation is not what I've been looking for so far for lack of experience managing this type of project and also, I don't have a lot of money.  Is anyone familiar with this area that can give me some words of advice about what is a good way to get started here in the 2017 RVA market?

James Wise · Answer

Don't over complicate things. If you want to get involved in the day to day & make an active business buy a distressed property cash, renovate it & refinance. If you are just looking for a passive way to park some money while earning a hefty return and quadrupling your investment in 30 years go the turnkey route.

Turnkey is simply paying a premium to have someone else do the work for you. Just like going to a steak house instead of firing up your grill.

Linda S. · Answer

@Rick Delgado,

There  are a lot of opportunities there! It's a short drive to Richmond (30 mins) and a lot of people commute.   I think if you want a low-cost turnkey, that will be your best option.    The Richmond market is filled with flippers now,  so there are a lot of turnkey.. but you'll be paying $$$$...    Feel free to check out Petersburg, Hopewell, and Colonial Heights specifically, as there is Fort Lee, VSU, and Amazon right there so we've noticed a steady influx of people.

We focus on renovating houses in those areas, and granted our houses come out really, really nice, but haven't had any issues at all renting them out!

Steve Rogers · Answer

I'm looking to get into the turnkey market in the richmond area as well. Looking for passive rental income. I'm prepared to do all cash  in the $70K-90K range.  New to this so I'm not sure where to start. The petersburg/chesterfield of Tidewater areas are my target areas.

Any advice on how to determine a good mgt company, rental rates, etc. Also what about companies like roofstock?

Rick Delgado · Answer

Thank you James.

Rick Delgado · Answer

Thank you Linda!!

Rick Delgado · Answer

Thank you Linda!  Do you think the try cities or Chesterfield are currently a good market for renting a turnkey?

Linda S. · Answer

@Rick Delgado,

It all depends on what you want.     If you want a low cost turnkey, you're probably looking at a house around $80K-$150K in the tri-cities or chesterfield!   If you want turnkey in Richmond (Hanover/Henrico), IMO you're starting at $150-$250K+..  Definitely check out those areas, or even Newport News/Hampton Roads have a lot of great deals!    I have a great realtor who is also an investor, if you need help getting started!

Also, just be aware that banks will want 20%+ 6 months debt payments available in cash.   Good luck!

Turnkey market in and around Richmond Virginia?

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