Rental Property Investor · Richmond, VA · Member since 2018 · 76 posts · 28 votes
My city, Richmond VA just announced a large $350 million casino development with hotel restaurant spa etc. The development will go in an area that currently has very low house prices and mostly section8 tenants but the neighborhood is "flipping". What are your thoughts on investing in a few rentals or an Airbnb's in that area. My initial thought is that it won't necessarily increase the home values but could be a great rentals with low vacancy rates? Does anyone know if these Indian casinos usually have affordable rooms or are they more high-end?
We just need to factor in any new regulations that might be coming from the city government. Here is the link to the PDF of the proposed ordinance draft as well as the city's landing page for STRs. What I am not clear about is what they refer to on the next to the last page of the PDF:
l. Use of a dwelling unit as a short-term rental may not exceed 180 nights per year. m. The short-term rental operator shall occupy any dwelling unit operated as a short-term rental for at least 185 days per year.
Are they limiting you to 180 days if you live there too, but if you don't, there is no limit?
I just hope the City of Richmond has moved beyond their past mistakes, like the time when they were trying to encourage more shopping downtown but at the same time doubling parking meter rates.
Think u got it backward. Up to 180 days if u dont live there. If u live there, no limit. This might not be that bad. Were u guys really expecting more than 180+ days rental per year? If it’s a casino, I think you’d mostly get wknd & holiday traffic so doubtful you’d exceed 180 rental days in a yr. I mean, doesn’t seem like there’d be much demand for a Tuesday night in March - it’s not exactly Disney world.
My opinion as a customer of Airbnbs - I wouldn't want to stay in an area that is sketchy.
I also think most of the casino's customers will be local and won't need a hotel room. Those that do stay in the casino hotel may get reduced rates if they're regular players.
I think the purchase might be better for long term rentals, rather than short term. The casino workers will need housing.
Your situation is sort of similar to what I do. I'm in a small town with crime and drugs. There is a refinery here. I rent my 23 STRs specifically to refinery contractors. They all get a per diem. If they weren't staying with me, they'd be staying in a motel. Market your STRs toward the people doing the construction work. If your market is like my market, 6 months of gross rent should be greater than the purchase price of the house.
We recently had on built near us. Because the casino is bringing in big name entertainers, there is a demand for rooms. Many people aren’t flying here to attend or play, but they are driving far enough that they stay overnight.
@Andria Kobylinski Still too early for me personally, but know folks who are swarming there. It's a great time for investors that are okay with dealing in that area, and the values should skyrocket, but I just don't want to deal with it when there are so many other opportunities. Chesterfield announced world's biggest water/surf park yesterday too. Crazy. It sounds like our investments anywhere in Richmond will be great :)
If you have the patience to wait for the neighborhood (and the teeth to deal with it now) then go for it. If not, keep buying up the rest of Richmond and you likely won't be upset about "missing out" on the Manchester wave. There's crazy RE announcements all over the city lately.
We just need to factor in any new regulations that might be coming from the city government. Here is the link to the PDF of the proposed ordinance draft as well as the city's landing page for STRs. What I am not clear about is what they refer to on the next to the last page of the PDF:
l. Use of a dwelling unit as a short-term rental may not exceed 180 nights per year. m. The short-term rental operator shall occupy any dwelling unit operated as a short-term rental for at least 185 days per year.
Are they limiting you to 180 days if you live there too, but if you don't, there is no limit?
I just hope the City of Richmond has moved beyond their past mistakes, like the time when they were trying to encourage more shopping downtown but at the same time doubling parking meter rates.
We just need to factor in any new regulations that might be coming from the city government. Here is the link to the PDF of the proposed ordinance draft as well as the city's landing page for STRs. What I am not clear about is what they refer to on the next to the last page of the PDF:
l. Use of a dwelling unit as a short-term rental may not exceed 180 nights per year. m. The short-term rental operator shall occupy any dwelling unit operated as a short-term rental for at least 185 days per year.
Are they limiting you to 180 days if you live there too, but if you don't, there is no limit?
I just hope the City of Richmond has moved beyond their past mistakes, like the time when they were trying to encourage more shopping downtown but at the same time doubling parking meter rates.
Think u got it backward. Up to 180 days if u dont live there. If u live there, no limit. This might not be that bad. Were u guys really expecting more than 180+ days rental per year? If it’s a casino, I think you’d mostly get wknd & holiday traffic so doubtful you’d exceed 180 rental days in a yr. I mean, doesn’t seem like there’d be much demand for a Tuesday night in March - it’s not exactly Disney world.
The proposal is actually to severely limit STR. You can only STR your primary residence. At least 185 days of you living there and max 180 daysof STR there. You can not own a unit only for STR and comply.