Is Bon Air, VA a good market for investment in multifamily?

[Sophia N.]

We are looking at buying a multifamily property in Bon Air, VA. It is not our typical market, so would love some insight if possible into this market... is there a lot of activity/growth? The current underwriting projects an initial loan at 60% LTV with a fixed rate loan at a 5.50% interest rate. They say the property is likely highly "affordable" making it very attractive to Freddie Mac. Is that rate realistically possible in this environment?

[John Norman]

Quote from @Sophia N.:

We are looking at buying a multifamily property in Bon Air, VA. It is not our typical market, so would love some insight if possible into this market... is there a lot of activity/growth? The current underwriting projects an initial loan at 60% LTV with a fixed rate loan at a 5.50% interest rate. They say the property is likely highly "affordable" making it very attractive to Freddie Mac. Is that rate realistically possible in this environment?

Sophia, I am local RIchmond VA area Realtor and investor. Bon Air is a decent area and suburb of the city.

Like any investment, it all depends on what your risk and exit strategy is. And let me know how to get a 5.5% interest rate in todays multifamily market! Most multifamily rates at 8%+

Reach out if I can be of any helpful and educated advice for central virginia properties