I'm considering a couple of properties in the Oak Grove, and Highland Terrace/Providence Park neighborhoods in Richmond, some for rentals, one or two for flips. I live up in DC so I don't know the areas too well. Does anyone know what these neighborhoods are like? How are they trending? Are there any areas in transition in Richmond and/or areas to avoid?
Thanks in advance for any advice!
Oak Grove/Blackwell area is up and coming, just have to buy right. Trending upwards.
Highland Terrace/Providence Park is currently a very popular flipping area of town. FYI the Richmond Henrico Tpke is a market divider, west is higher values and east is lower values/prices. Don't use comps for Highland Terrace from Brookland Park. Further East you go in Highland Terrace/Providence Park, prices generally decline, some parts very fast. Avoid Southern Highland park is hit and miss. Avoid Gilpin.
Brookland Park is the more popular area, but it could be over supplied, just tons of flippers already there, the last couple years.
Something that is really neat about the area is the diversity between all the different neighborhoods. Obviously, the prices are lower in certain areas for good reasons. The Northside-ish neighborhoods described above have tons of flips happening every other house sometimes but what I found is that these are usually full-gut high priced flips, not the kind of thing a beginner like myself was looking to get into. And anything on the MLS is probably going to be overpriced when you factor in how much of a flip you're going to have to do. There are definitely people making it work though.
I've done a lot of driving and exploring the neighborhoods. A good tip I got is to avoid the neighborhoods titled "courts" or very close by ones. There are 5 or 6 of them. This is very generalized and I'm sure there are exceptions to that rule but there is a lot of history related to the courts that you can research more into that have kept them less desirable.
Those southside neighborhoods you are looking at are definitely developing but its block by block. There are still a lot of vacant/boarded up houses in those neighborhoods. The real development is happening much closer to the river in the Manchester neighborhoods.
I've only been here about a year so there are certainly others on BP that know the city better than me but that has been my experience. Good luck!
@Peter Jaglom great advice offered by @Bill Hancock and @Eddie Gonnella already. I'm a property manager in RVA and we don't manage houses in the Oak Grove area at this point, and are hesitant in the Highland Terrace area. @Bill Hancock hit the nail on the head about the difference between Highland Terrace and Brookland Park. Many out of town investors think they are the same. Like Eddie stated, Richmond is very "block by block" but once you've got the neighborhoods down there is a lot of potential.
My tip would be to develop the right local team that understands the city and build those relationships. I'm happy to be a resource if I can.
Bill, Eddie, and Stephen, thanks so much for the insights! Very helpful. Right now I'm most interested in a potential BRRRR down in Oak Grove.
@Bill Hancock , when you say "buy right" in Oak Grove do you mean buy at the right price, or buy on the right block?
@Stephen Glover , do you intentionally not manage houses in Oak Grove because of crime or difficulties with tenants, or because you just haven't happened to have any clients in that area yet?
I own a duplex in Highland Park. I like the area, like the flipping activity I have seen. We have two tenants, so far it's been stable. Message me for anything more specific.
@Peter Jaglom We have turned down quite a few opportunities to manage there. We've tried to manage some lower end homes in other neighborhoods and have found that it makes it difficult to provide a higher level of service elsewhere. The 3-4 homes we've experienced with will take up 50% of our time relative to the rest of our portfolio.
@Peter Jaglom a combination of both price and block. The prices have increased dramatically there in the last 9 months and I have heard of crime in the area of Oak Grove first hand from inspection related work.
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