Student housing in Richmond

[Eric Yi]

Hi all,

Anyone have any experience with buy and hold rentals in Richmond Virginia? Anyone targeting the areas around VCU or University of Richmond?

How is the market for student housing around the Fan?

[Jon Deavers]

@Ana M.

Hey Ana!

Finding cashflowing rentals in Richmond near VCU (especially in the Fan, Jackson Ward, or Carver) is a tall order. Returns are far higher and turnover damage liability is far less in most every other part of the city. The exception is what @Bill Morrismentions above regarding commercial multifamily. The reason being that 5+ units require commercial financing and thus the competition level is lower and buyers are more sophisticated in that space. Also, commercial buildings are more likely to be valued by the income they generate and not as heavily influenced by comparable sales. The owner occupant demand for single to four unit buildings in and around VCU drives up the sale prices in those areas.