Multi-Families in Richmond, Virginia

Multi-Family and Apartment Investing
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Multi-Families in Richmond, Virginia

Joe Dowdell
New York City, NY · Member since 2016 · 8 posts · 1 vote

First of all, this is my first post so I hope I'm posting in the right forum. I have been spending the last few months reading as many books on Brandon's List as well as a few others (i.e., Rich Dad, Poor Dad (actually I read the entire series), The Ultimate Beginner's Guide to Real Estate Investing, The Book on Rental Property Investing and The ABC's of Real Estate Investing) plus I've attended or watched at least a dozen of his webinars. 

As a result, I'm finally starting to feel more confident in my understanding of the terminology, concepts, etc. of Real Estate Investing and would like to start to explore a market that I have family ties to. My sister and brother-in-law live in Henrico, VA and I was wondering if anyone is familiar with the Richmond, VA Real Estate Market. In particular, I'm wondering about investment opportunities in Multi-families for the purpose of either Buy & Hold or BRRRR's?

I would love some feedback from possibly a local investor or a local Real Estate agent who specializes in investment properties especially Multi-family units.

Thanks in advance and I appreciate any advice, contact names, etc. ,

Joe

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Will C.
Rental Property Investor · Richmond, VA · Member since 2016 · 279 posts · 133 votes
9y

@Joe Dowdell

From my brief REI experience here in RVA, there is a small inventory of multi families on the market at any given time. Mostly duplexes with the occasional 3-4plex in the northside area. Most of them need major renovations so be prepared with capital for that. Northside is in a early revitalization period, alot of SF homes being flipped.

 I have seen a few properties that looked close to turn key but they were listed for retail and the current rent didn't support listing price. I think a few of the MF are being sold by old investors looking for a sucked to pay top dollar.

I myself would like to find a nice MF but maybe I'm being to picky. Hope this helps and welcome to BP!

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  • David Hildebrandt
    Cincinnati, OH · Member since 2016 · 146 posts · 104 votes
    9y

    Not local, but good luck, @Joe Dowdell. Way to take the plunge and go pro!

    1Reply
  • William BrownPro Member
    Wholesaler · Los Angeles, CA · Member since 2016 · 276 posts · 181 votes
    9y

    Hey @Joe Dowdell welcome to the party!

    I had the same questions coming on BP that you have, and I wanted immediate answers and my posts to blow up with advice and tips. It didn't happen. But this is a good-thing…It makes you try harder and put YOURSELF out there, and make connections that way. Through BP I have connected with 2 local REIA groups out there, and have started networking. your network is your net worth.

    I have also found that BP loves specific questions, very few people, (or at least the people we want to hear advice/insight from anyway) are pretty busy and aren't looking to answer a hundred questions for one person, when they could answer 100 people's questions. 

    Just keep reading, listen to the podcasts if you haven't started already(SO motivating and filled with a wealth of applicable information) thanks @Joshua D. and @Brandon Turner. I listen to them in the car, when I'm at home, at the gym, etc. Keeps your mind on it figuring out how the hell you are going to go about this.

    Anyway, just my two cents.

    Good luck and God bless!

    [email protected]310-919-0587Podcast Guest on Show #371
    1Reply
  • Joe Dowdell
    OP
    New York City, NY · Member since 2016 · 8 posts · 1 vote
    9y
    Originally posted by @David Hildebrandt:

    Not local, but good luck, @Joe Dowdell. Way to take the plunge and go pro!

     Thank you David, appreciate it. Cheers.

    1Reply
  • Joe Dowdell
    OP
    New York City, NY · Member since 2016 · 8 posts · 1 vote
    9y
    Originally posted by @William Brown:

    Hey @Joe Dowdell welcome to the party!

    I had the same questions coming on BP that you have, and I wanted immediate answers and my posts to blow up with advice and tips. It didn't happen. But this is a good-thing…It makes you try harder and put YOURSELF out there, and make connections that way. Through BP I have connected with 2 local REIA groups out there, and have started networking. your network is your net worth.

    I have also found that BP loves specific questions, very few people, (or at least the people we want to hear advice/insight from anyway) are pretty busy and aren't looking to answer a hundred questions for one person, when they could answer 100 people's questions. 

    Just keep reading, listen to the podcasts if you haven't started already(SO motivating and filled with a wealth of applicable information) thanks @Joshua D. and @Brandon Turner. I listen to them in the car, when I'm at home, at the gym, etc. Keeps your mind on it figuring out how the hell you are going to go about this.

    Anyway, just my two cents.

    Good luck and God bless!

    Thanks William, appreciate the advice. I actually live in NYC so joining the local REIA wouldn't work for me. I have family in Richmond, VA and St. Petersburg/Gulfport, FL which is why I'm interested in those areas. I will keep looking through the forum to see if I can find anything on these two areas but once again, thank you for the response. 

    Best of luck to you as well. 

    Joe

    0Reply
  • Will C.
    Rental Property Investor · Richmond, VA · Member since 2016 · 279 posts · 133 votes
    9y

    @Joe Dowdell

    From my brief REI experience here in RVA, there is a small inventory of multi families on the market at any given time. Mostly duplexes with the occasional 3-4plex in the northside area. Most of them need major renovations so be prepared with capital for that. Northside is in a early revitalization period, alot of SF homes being flipped.

     I have seen a few properties that looked close to turn key but they were listed for retail and the current rent didn't support listing price. I think a few of the MF are being sold by old investors looking for a sucked to pay top dollar.

    I myself would like to find a nice MF but maybe I'm being to picky. Hope this helps and welcome to BP!

    2Reply
  • Adrian StamerPro Member
    Real Estate Investor & Agent · Richmond, VA · Member since 2013 · 319 posts · 167 votes
    9y

    Find a deal on a multi family in Richmond on the market will be rather difficult. Anything priced remotely decently is under contract within a day or two. As someone said above, most of the properties sitting are in places you don't want to be with mediocre returns

    Good luck, I'd recommend a more creative approach

    2Reply
  • Joe Dowdell
    OP
    New York City, NY · Member since 2016 · 8 posts · 1 vote
    9y
    Originally posted by @Will C.:

    @Joe Dowdell

    From my brief REI experience here in RVA, there is a small inventory of multi families on the market at any given time. Mostly duplexes with the occasional 3-4plex in the northside area. Most of them need major renovations so be prepared with capital for that. Northside is in a early revitalization period, alot of SF homes being flipped.

     I have seen a few properties that looked close to turn key but they were listed for retail and the current rent didn't support listing price. I think a few of the MF are being sold by old investors looking for a sucked to pay top dollar.

    I myself would like to find a nice MF but maybe I'm being to picky. Hope this helps and welcome to BP!

    James--Thank you for your response, greatly appreciated. Perhaps, I will have to rethink MF in Richmond and look at SF as well. Cheers.

    0Reply
  • Joe Dowdell
    OP
    New York City, NY · Member since 2016 · 8 posts · 1 vote
    9y
    Originally posted by @Adrian Stamer:

    Find a deal on a multi family in Richmond on the market will be rather difficult. Anything priced remotely decently is under contract within a day or two. As someone said above, most of the properties sitting are in places you don't want to be with mediocre returns

    Good luck, I'd recommend a more creative approach

     Adrian--Thanks for the feedback and I think I'm going to look at SF as well. Cheers.

    0Reply
  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    9y
    Originally posted by @Adrian Stamer:

    Find a deal on a multi family in Richmond on the market will be rather difficult. Anything priced remotely decently is under contract within a day or two. As someone said above, most of the properties sitting are in places you don't want to be with mediocre returns

    Good luck, I'd recommend a more creative approach

     Adrian, have you looked at larger multis in the commercial realm?

    0Reply
  • Adrian StamerPro Member
    Real Estate Investor & Agent · Richmond, VA · Member since 2013 · 319 posts · 167 votes
    9y
    Originally posted by @Taylor L.:
    Originally posted by @Adrian Stamer:

    Find a deal on a multi family in Richmond on the market will be rather difficult. Anything priced remotely decently is under contract within a day or two. As someone said above, most of the properties sitting are in places you don't want to be with mediocre returns

    Good luck, I'd recommend a more creative approach

     Adrian, have you looked at larger multis in the commercial realm?

    Well I review everything that hits the market, which of course is very little. Picked up a costar subscription to attempt to get more of an edge but there isn't much there either... same company as loopnet but more data, though feels more focused at traditional commercial. 

    With the larger multis you hit a whole different set of competition which are also willing to take lower returns. This of course a lot of the time is all done behind the scenes with brokers and pocket deals.  Any larger stuff that actually hits the market has been looked over 50 times.

    These larger multis is where I am actually looking to focus to take advantage of Fannie Mae multi loans, but easier said then done since so is everyone else. 

    2Reply
  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    9y

    @Joe Dowdell,

    Welcome to RE! I agree with the prior comments, the only real duplexes now in Northside, and that's an area that is seeing improvement, but is not a very desirable area at the moment IMO. Could you look for a very large SFH, and turn it into a duplex? Richmond has a lot of huge houses that need full renovations-- maybe convert it while you do it? Also, try checking out Colonial Heights/Chesterfield/Hopewell, there are a lot of good buys there too! I mainly do Petersburg, but that's not for an out of state investment IMO because the area can be good/bad very quickly.

    Feel free to reach out if you need any contractor recommendations when you buy! 

    1Reply
  • A.J. McKinney
    Real Estate Investor · Richmond, VA · Member since 2016 · 10 posts · 1 vote
    9y

    Welcome to Richmond! I'm new to RVA as well, and have talked to most of the people in this thread and have come to the same conclusion...there's very little for sale in Richmond that makes sense to buy! I'm even looking for a primary residence, and unless I want to live in the northside, there's very little worth having under $400k and I feel those houses are overvalued by atleast 100k. It's sort of depressing in a way! ha

    0Reply
  • Stacy E.
    Investor · Norfolk, VA · Member since 2014 · 125 posts · 19 votes
    9y

    @William Brown which REIAs are you a part of?  There seems to be so many here I don't know which ones are good and not so good...

    0Reply
  • Joe Dowdell
    OP
    New York City, NY · Member since 2016 · 8 posts · 1 vote
    9y
    Originally posted by @Linda S.:

    @Joe Dowdell,

    Welcome to RE! I agree with the prior comments, the only real duplexes now in Northside, and that's an area that is seeing improvement, but is not a very desirable area at the moment IMO. Could you look for a very large SFH, and turn it into a duplex? Richmond has a lot of huge houses that need full renovations-- maybe convert it while you do it? Also, try checking out Colonial Heights/Chesterfield/Hopewell, there are a lot of good buys there too! I mainly do Petersburg, but that's not for an out of state investment IMO because the area can be good/bad very quickly.

    Feel free to reach out if you need any contractor recommendations when you buy! 

    Linda,

    Thanks for the reply and info. My sister and brother-in-law live in Henrico, VA so we are interested in doing this venture together. My brother-in-law has previous experience in doing contract work (from building home from the ground up to renovation work) which I believe will be a big help. I'm not set in stone on MF's, I just thought they sounded interesting to me, but my sister and brother-in-law thought SF would probably be better in Richmond.

    Thanks again for your advice and I will check out the areas you mentioned.

    Cheers,

    Joe

    0Reply
  • William BrownPro Member
    Wholesaler · Los Angeles, CA · Member since 2016 · 276 posts · 181 votes
    9y

    @Stacy E. I've attended to one, (only been back active on BP and REI for a little over 2 months now), down in Woodstock Va. It was my first one, about 9-10 people there and we kind of just talked and shared business cards. It was a bit of a hike for an evening during the week after school and work for me, but it was good. I believe it was called the Shenandoah Valley Real Estate Investors. I talked with some people and started to get some real world insight and knowledge.

    https://www.meetup.com/Shenandoah-Valley-Real-Esta…

    I can't speak about all the other ones, like you I am signing up for as many as I can to try and find some that will really work well and aren't just pitches like some others. I'll let you know! shot you a colleague request, always happy to talk with other local investors! 

    [email protected]310-919-0587Podcast Guest on Show #371
    1Reply
  • Krista Dodson
    Real Estate Agent · Midlothian, VA · Member since 2016 · 39 posts · 19 votes
    9y

    Welcome to BP, @Joe Dowdell. I live down in Midlothian, just south of Henrico, and am also starting my investing journey down here. I've been told there are still deals to be had in this market, but haven't found many myself. I am finding that Spring isn't really the time to be finding deals, as people are just getting their houses on the market, etc. I think I'm looking toward late spring early summer, after things have been sitting on the market for 60-90 days. I've been SOL in looking for Multi-s. Again, I've been told that they are out there pre-listing if you know the right people and get your offer in quick, but we're waiting for our financing to get squared away before we start waving cash around.

    @Stacy E., I've been to both the Richmond REIA and the Richmond RING, and they're both great. At the REIA I met more realtors and wholesalers, while at the RING I met more investors. So which one is better really depends on what you're looking for. Both have pretty extensive dealmaking sessions and great information sessions. The RING Meeting I went to was at a bar, so that was a bonus there. Admission came with a drink ticket. :-) Hope to meet you out there one of these days.

    1Reply
  • Benjamin Lapidus
    Investor · Broomfield, CO · Member since 2015 · 60 posts · 83 votes
    9y

    @Joe Dowdell - double down on @Adrian Stamer's comments.  There's not a ton of activity in Richmond and you're competing with NYC private equity companies in the B-C neighborhoods. One firm just bought up all of Chamberlayne Ave.  

    Prices are higher than value at the moment.  I know because I just sold my last MF (38 Units on Chamberlayne).  I bought for $34K/door and sold for $39K/door, but not without dumping a ton of money into it to increase the value and attempt to cash flow.

    Single families are also a lot more expensive than they used to be when foreclosures were prevalent, but there's still more margin there in my opinion than in MF.  That said I restricted my SF buys to Henrico County.

    Welcome to BP and good luck dealing!

    2Reply
  • Joe Dowdell
    OP
    New York City, NY · Member since 2016 · 8 posts · 1 vote
    9y
    Originally posted by @Krista Dodson:

    Welcome to BP, @Joe Dowdell. I live down in Midlothian, just south of Henrico, and am also starting my investing journey down here. I've been told there are still deals to be had in this market, but haven't found many myself. I am finding that Spring isn't really the time to be finding deals, as people are just getting their houses on the market, etc. I think I'm looking toward late spring early summer, after things have been sitting on the market for 60-90 days. I've been SOL in looking for Multi-s. Again, I've been told that they are out there pre-listing if you know the right people and get your offer in quick, but we're waiting for our financing to get squared away before we start waving cash around.

    @Stacy E., I've been to both the Richmond REIA and the Richmond RING, and they're both great. At the REIA I met more realtors and wholesalers, while at the RING I met more investors. So which one is better really depends on what you're looking for. Both have pretty extensive dealmaking sessions and great information sessions. The RING Meeting I went to was at a bar, so that was a bonus there. Admission came with a drink ticket. :-) Hope to meet you out there one of these days.

    Thanks and best of luck to you! Small world, my sister and brother-in-law own Hot House Yoga in Midlothian. :) 

    0Reply
  • Joe Dowdell
    OP
    New York City, NY · Member since 2016 · 8 posts · 1 vote
    9y
    Originally posted by @Benjamin Lapidus:

    @Joe Dowdell - double down on @Adrian Stamer's comments.  There's not a ton of activity in Richmond and you're competing with NYC private equity companies in the B-C neighborhoods. One firm just bought up all of Chamberlayne Ave.  

    Prices are higher than value at the moment.  I know because I just sold my last MF (38 Units on Chamberlayne).  I bought for $34K/door and sold for $39K/door, but not without dumping a ton of money into it to increase the value and attempt to cash flow.

    Single families are also a lot more expensive than they used to be when foreclosures were prevalent, but there's still more margin there in my opinion than in MF.  That said I restricted my SF buys to Henrico County.

    Welcome to BP and good luck dealing!

    Thank you for the message and the info. I was in Henrico over X-Mas.  I went to University of Richmond and hadn't been back there in long time. I was surprised at how developed it was now and how many big Apartment complexes had been built. Cheers.

    0Reply
  • Doug Poff
    Investor · Moseley, VA · Member since 2016 · 49 posts · 28 votes
    9y

    Following.  I agree with @Linda Della Ripa, Chesterfield for SFRs is definitely worth a look.  

    0Reply
  • John Nisewonger
    Investor · Chesterfield, VA · Member since 2014 · 93 posts · 11 votes
    9y

    Prices are pretty high right now but there are a few deals out there. They are gone usually within a few days. Cash def is king in this market. If you want a deal, wait til end of year when banks unload and  owner occupants aren't driving the prices up. I have a rentals in chesterfield and in col heights. you might find a decent priced deal in n chesterfield or the tri cities and parts of richmond. Use caution in richmond and petersburg as someone else said it can turn from a safe part of town to crack town within a couple blocks. Best of luck

    1Reply
  • Tyler WillsonPro Member
    Roanoke, VA · Member since 2017 · 48 posts · 15 votes
    9y

    Hello all, I came across this thread trying to find out if there was any need for rezoning in Richmond when trying to convert a SF to MF. Is there anything you actually need to do for this type of conversion? I'm looking at a 4/2 in the McGuire neighborhood, south of the city. I was thinking I could get $800 as SF and $1000 as MF in that area.

    0Reply
  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    9y

    @Tyler Willson What is the property currently zoned as? You can look it up here Richmond VA property records

    Here is a link to the current zoning ordinance. Here's a handy zoning guide the city put out.

    Looks like you're from Roanoke. Do you have experience investing in Richmond? That area is on the low end economically so make sure you know what you're getting into. You're looking at a SFR to Duplex conversion, whereas this thread was generally regarding much larger multifamilies. Duplexes are fairly common in RVA and are generally overpriced.

    2Reply
  • Shar Brunjes
    Investor · Los Angeles, CA · Member since 2016 · 2 posts · 0 votes
    9y
    Hi Joe, This is one of my first posts on Bigger Pockets too. I had to respond because I was in the EXACT same situation. I live in a very expensive market and wanted BRRR multi family properties. I also have a sister-in-law in Richmond, VA and think it's a pretty cool place. I started window shopping in Jackson Ward. On Memorial Day weekend I got in touch with a realtor and found a duplex and I'm already in escrow. It was on the market for 5 days and I had all cash (my LA down payment was enough to pay cash for a duplex in Richmond). I spent a long time considering this and being concerned about various different issues - counting on my sister in law, owning in a place I have only visited a few times, relying on contractors etc. who I am not familiar with. In the end, I had no answer and realized I was just going to have to learn as I went along. I paid $280K for a duplex and feel like I could make as much as $3000/month in both units after a $30K -$40K remodel investment. I'll refi once leases are in place. Ultimately, I just went for it. I do not think I'll lose money. I'm a total beginner and I expect that all the stuff I didn't consider will be where I learn so I took a chance.
    0Reply
  • Tyler WillsonPro Member
    Roanoke, VA · Member since 2017 · 48 posts · 15 votes
    9y

    @Taylor L. It is currently zoned as R-4. It looks like I would need to get it rezoned for R-5A or R-6 if I wanted it to be a duplex legally. That could be slightly problematic because the point of R-4 zoning is to cut down on population density. Any thoughts on the process of getting it changed?

    I do not have experience in the Richmond area, in fact I have experience no where. This would be my first deal, and the only reason I chose out of area is because it is coming from family. They have other rentals in the area; however, this property needs significant rehab, and they do not currently have the time or money for that. Also, that's my bad on choosing the wrong thread. Sorry about that.

    Thank you for the resources; they helped for sure.

    1Reply
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