Glen Allen, VA · Member since 2018 · 3 posts · 0 votes
Hi folks,
I am a new member and seeking for some advice on investing rental properties in RVA or central VA in general. I have found wealth of information from BP on investing on real estate. Now willing to connect and start investing on rental properties.
I travel for work but have been looking for some passive income opportunities for the last year or so. After some thought me and my wife agreed rental properties could be a good plan for us. We are not looking for instant ROI. More about buy and hold scenario with positive cash flow and returns coming in the long run. I am looking forward to get started with something within 100k to 120k range.
I did research about some Turn Key investors around US. I am not aware of any reputable ones around RVA/VA though.
You definitely won't find anything for $100-120 on Monument Ave except for the odd condo which will likely have a prohibitively high COA dues. Proximity to U of R is also going to run you a minimum of $230k (and there is a lot more on campus housing at UR than there is VCU).
I also suggest the tri-cities for SFH's 100-120k. Great working class industrial/manufacturing/retail employers throughout southern Chesterfield and tri-cities as well as Virginia State U, Fort Lee. Pretty easy to hit a 1% rent to price ratio there with relatively little or no rehab.
If you're looking for 100-120K, I'd strongly recommend looking south of the river. Check out Hopewell, Colonial Heights, Chesterfield. There are a lot of jobs down there, and the commute is decent, so don't be afraid to look out of the box!
Glen Allen, VA · Member since 2018 · 3 posts · 0 votes
8y
Hi,
@Linda D. Thanks for your suggestions.
I have also been looking around Monument Ave. and there are few properties within $150k to $165k range. Seems like a good area given U of R is around. There are few on auction too. But haven't explored this option.
One question, what is a typical ROI you look for on Investments around RVA?
For example, I have found a property around $165k. With 20% down it will cost me around $930 after mortgage, taxes and insurance. So around $250 remaining will give me around 7.5% ROI. Is that a good deal in Richmond? I didn't include the variable costs like vacancies, but hoping it will be minimum given it's an area on demand.
I have also been looking around Monument Ave. and there are few properties within $150k to $165k range. Seems like a good area given U of R is around. There are few on auction too. But haven't explored this option.
One question, what is a typical ROI you look for on Investments around RVA?
For example, I have found a property around $165k. With 20% down it will cost me around $930 after mortgage, taxes and insurance. So around $250 remaining will give me around 7.5% ROI. Is that a good deal in Richmond? I didn't include the variable costs like vacancies, but hoping it will be minimum given it's an area on demand.
Looking forward to your thoughts.
Rafiq
Don’t forget ongoing maintenance and dealing with managing it. That’ll eat up the rest of your $250
You definitely won't find anything for $100-120 on Monument Ave except for the odd condo which will likely have a prohibitively high COA dues. Proximity to U of R is also going to run you a minimum of $230k (and there is a lot more on campus housing at UR than there is VCU).
I also suggest the tri-cities for SFH's 100-120k. Great working class industrial/manufacturing/retail employers throughout southern Chesterfield and tri-cities as well as Virginia State U, Fort Lee. Pretty easy to hit a 1% rent to price ratio there with relatively little or no rehab.
Rental Property Investor · Richmond, VA · Member since 2017 · 295 posts · 229 votes
8y
@Rafiq Islam Although the rental market is rather strong right now in Richmond as housing purchase prices continue to rise (like most of the country), you should include a vacancy rate into the equation in case of an eviction.
Flipper/Rehabber · Farmville, VA · Member since 2018 · 280 posts · 171 votes
7y
I can give you a PM in the Chesterfield area that also does realty services. Also, you may consider East End Henrico County in the Highland Springs/Sandston area. I'm very familiar with the area and have been looking at some properties myself. It's in a fairly heavy buy and remodel phase right now and may be a good time to get in.