New to BP, first time investor, looking for advice from Virginia

[Stephen Wilson]

Hello everyone, I'm brand new to BP but have been listening to podcasts and reading recommended books on investing for a while now. I am going to be completely candid in this post so I can get some specific help. My family is looking to sell a large commercial property in Florida in the immediate future. We already have a rock star agent for this and the property will likely be selling for roughly of 1.6 mil. This property, for a long time, has not performed well financially and due to this my family is not holding many liquid assets. We will be trying to go the route of a 1031 and are currently looking to reinvest most of the income from this sale in Virginia (we have a piece of residential property there that we plan on moving to). 

The areas that I have been looking into are Norfolk, Richmond, and Roanoke. We would like to purchase a large multi family residence that would have an ROI of around 8-10%. I would like to ask for advice from people who have a history in Virginia and could possibly point me towards areas that would be better than others. Additionally, I seek information regarding agents that could help me find the properties that I am looking for, property managers that could help me understand the demographics of these areas and what would need to be done to reach close to market rents, and, if at all possible, someone who can guide me through this whole process.

I understand this is a lot to ask, and I appreciate any and all advice, but, unfortunately, none of the people that I know personally have done any investing like this or on this scale. I believe I understand the basics of what we are about to embark on but I will always accept help from those who have tread these paths before me. Please feel free to leave me a PM.

[Taylor Hudgins]

Hi Stephen,

I'm originally from central Virginia and currently live in Virginia Beach.  Richmond, Roanoke, and Norfolk are going to each have their different perks and concerns.

Roanoke is currently up and coming which is great!  The only thing here is that they are in the growing pain phase where businesses are still moving to the area, but rents seem to be on the lower side compared to more populated areas in Richmond and Norfolk.  

Richmond is very spread out with lots of neighboring towns.  Downtown Richmond is pretty condense with lots of multi-family properties available, but each area is going to have it's own character when comes to local businesses, schools, and crime rates.  I'd suggest potentially narrowing down where in Richmond you'd like to search.  Some areas are newer, most of downtown is older.  BUT you could always buy and older multifamily or apartment complex, rehab it, and then force the appreciation to refinance for another one.

Norfolk is fairly similar - just on a much smaller scale.  Norfolk is (generally speaking) an older town with lots of room to grow, but our market is moving FAST.  Someone will have a duplex on the market on Friday and then have 5 offers by Monday.  For property managers, definitely reach out to Patti Robertson at https://www.PMIVirginia.com.