Is anyone in the central Virginia area?

19 Replies

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.
@Jesse Harris . Hey Jesse, I’m in Lynchburg. But looking to go towards Danville or Roanoke or Charlottesville to start looking. Just not sure where NOT to look. Any advice is greatly appreciated.

@Preston Quinn I would personally stay away from Danville. I have family from there and some that still resides there. Their economy isn't strong, unemployment is high, and drug use is prevalent. You could make a decent profit because the house prices are so low; however, you could end up spending a fortune on eviction fees, repairs after a tenant move out, etc. because the type of tenants you would be renting to. I personally wouldn't risk my money out that way, but it's all about balancing risk and reward and what you are comfortable with!

Thank you. I constantly hear about violence in Danville. But, then again, I hear about a lot of violence in lynchburg as well. There are certain areas I will invest in in lynchburg and certain areas I won’t. I find it hard to believe that all of Danville is a bad investment. I’m sure Richmond is the same way. I need to know what areas are the problem areas to narrow my searches down. 

Hi @Preston Quinn , we've seen some great investments in the Richmond area. Quite a few of our borrowers have had successful flips in and around Richmond, Charlottesville, and Roanoke. If you're willing to expand your area, head out to the Tidewater region and there are some great opportunities in the Hampton Roads, Virginia Beach areas.

Ok. Thanks for that Bobby!  I’ll start looking there. Message me. I’d like to hear about financing options in your area. Always looking for new strategies. 

Thanks 

@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!

Charlottesville is tough for buy and hold.  Haven't seen many worthwhile deals in a while.  If you're fixing and flipping.... that may work but its not my area of expertise.

Originally posted by @Aaron Howell :

Charlottesville is tough for buy and hold.  Haven't seen many worthwhile deals in a while.  If you're fixing and flipping.... that may work but its not my area of expertise.

Charlottesville is a rough market to get in on.  I have a seen a few good deals but they come with a mountain of rehab work.  I would have jumped on them if I had a team together but I've only been in the area for a year.

I'd like to get in to a duplex house hack but those on the market won't cash flow. 

We're doing well in Ch-ville by buying fixer-uppers with cosmetic re-habs needed and Air BnB'ing them.  It works if you can find someone to manage and host for 10% and you have a nice mid-scale property.

@Tom Fisher - I'm really interested to learn about how you got into that business model. I'm in the Merchant Marines so I'm in and out of town...mostly out at sea. When I'm back in the states, do you mind if I look you up and we grab a cup of coffee?

Andrew, Sure.   Good luck with the Air BnB model in Albemarle County, though.   I understand there are now some pretty severe restrictions on doing it outside the Charlottesville city limits

We've structured construction loans on deals in Charlottesville where the investor replaces a mobile with a modular in desirable locations near a winery.