Is anyone in the central Virginia area?

[Preston Quinn]

Hey guys, I have been searching for properties here in Cental VA for quite some time now. Haven’t had much luck lately. I am starting to look about an hour away. Is anyone investing in central VA. I’d like to connect with someone to talk about other possible locations to invest.

[Tyler Kastelberg]

@Preston Quinn

Preston: My firm invests in both Richmond and Tidewater/Norfolk. Richmond is one of the strongest markets in the state, driven by VCU's expansion over the past 10 years and a trickle of new employers. A few pros and cons:

Pros: Great management companies, stable employment, strong occupancy

Cons: Valuations are very high, lots of supply coming to the market in Manchester/Scott's Addition areas

Hampton Roads/Norfolk is a good market but is very neighborhood dependent. Asset valuations are lower than Richmond, but you'll struggle to find a competent offsite property manager (for less than 80 units). 

Pros: Higher cash on cash returns possible, relatively low barrier to entry with sales around $50k-$60k/door for stabilized product

Cons: Very difficult to find a good manager, mostly Class C assets, lower occupancy than other parts of the state

Best of luck to you!