I am planning to buy my first investment property which is a brand new town home 2 miles south of James river in Manchester, VA city ( exactly 3 miles from Virginia State Capital ).
I started listening to the podcast of BiggerPockets on youtube & started taking small steps towards being financially independent.
Property price is 380K and i am planning to put down 20% down.
So here are my question's.
1) is it a good location? ( Schools are very bad )
2) can i expect minimum 2k rent ?
3) if you know of any other better location like suburbs of Richmond. let me know.
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
5y
I in VA but not familiar with that market, but just wanted to chime in to say a purchase price of $380K to achieve a $2K rent is terrible. While our markets are high in VA right now, we can achieve way close to the 1% rule than that - especially in a poor performing school district. Find a bull dog of a buyer's agent in that market to help you search. If you need a referral, let me know.
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
5y
I in VA but not familiar with that market, but just wanted to chime in to say a purchase price of $380K to achieve a $2K rent is terrible. While our markets are high in VA right now, we can achieve way close to the 1% rule than that - especially in a poor performing school district. Find a bull dog of a buyer's agent in that market to help you search. If you need a referral, let me know.
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
5y
Highly variable submarket and not a place someone not knowledgeable on Richmond should invest. Manchester varies highly. I agree with @Patti Robertson, you can get a much better rent multiple in many other parts of Virginia.
You bet. We have a free webinar/meetup coming up this week with a leading property manager in Richmond. It's on Tuesday evening, you can find it by searching Richmond in the BP events section. Hope you can join us!
Richmond, VA · Member since 2017 · 82 posts · 55 votes
5y
@Arun K. South Richmond can be very block by block so unless you are familiar with the area or have boots on the ground I recommend looking elsewhere, as others have mentioned. But I will say you're on the right track asking questions and networking. It's an area that has growth potential down the line. If you're not familiar with the 1% rule or some of the other rules of thumb definitely look those up because knowing your numbers and budgeting for them will be very important (use the BP calculator!)
Good morning, thank you for your inputs. can you please help me with 1% rule info & BP Calculator. i looked into Tools on the website but couldn't find anything with BP Calculator there.
Richmond, VA · Member since 2017 · 82 posts · 55 votes
5y
@Arun K. Check out Biggerpockets.com/calc. Choose whichever one fits your strategy and if you're not sure on the strategy, work to figure that out. Then read the How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started by @Brandon Turner which should have the rules of thumb in there (free pdf download if you google it. Or just google 1% rule). Listen to all the podcasts. Invest your time into education and mindset. Read Rich Dad Poor Dad.