All Forum Posts by: Jon Deavers

Hi @Eric Yi! Welcome to the site. Unlimited resources and information here so dig in and feel free to ask questions. If you make it back down to Richmond give me a shout and we can grab a coffee and talk shop!

@Account Closed

Wow... I had gotten used to it being in good shape. :)

It's pretty remarkable looking at the before and afters. 

Happy to have been able to help. Looking forward to the next one. Congrats man!

Thanks for the kind words @Brian Rhodes!

@Jason King

 Welcome to the site and don't look back! Richmond's an awesome place to live and there's plenty of opportunity to find a great home that will translate into a single family rental down the road. Message me if you need anything. 

I wouldn't market it as a 1 bed, since you have 2 fully functioning bedroomss, but price it as a one bed to make up for the small living spaces and you should be able to fill it.

Hi @Matthew Maggy

I know exactly which duplex you're talking about. I represented another BP member last year to purchase the one right across the street. You're spot on, in my opinion, regarding the numbers you have projected. The awkward layouts are what is holding that property up, also in my opinion. They both lack a real living room and that would be tough to get top of market 2 bed rents for, but $550 is pretty standard for 1 bed units in that area so if you market to that tenant base you shouldn't have a problem renting out. The building is in above average condition for the area, again my opinion. Not a bad buy at $85k.

Great points @Lisa Kohl

From a listing agent perspective:

Service is like a product in that you get what you pay for. A great tip from the Real Estate Guys Radio podcast is to ask a Realtor, during your interview, to lower the amount of commission they charge. If they say sure, then don't hire them. If they'll walk away from their own money that easily what do you think they'll do with yours?

There's a lot of costs involved with properly listing and marketing a property so having the agent justify why they charge their rate by showing a track record and a comprehensive marketing plan is a more valuable use of your time than haggling over half a percent. When I market a property at resale I pay (out of my pocket, not charged in addition to my commission rate) for professional photography, a pro-level account on major real estate websites that increases your listing's visibility over the competition, targeted social media marketing, traditional media advertising if the property warrants it, all in addition to the traditional costs involved with a listing (broker splits, lockbox purchase, sign purchases, open house costs, etc).

Hello @Phillip Glaeser

Your name sounds awful familiar. I represent several custom builders in the Richmond area so we may have crossed paths.

Anyway, welcome to the site and dig in! Plenty of great info here and tons of Richmond investors to network with.

Hello @John Davis

Welcome to the site! Plenty of Richmond folks here to network with. Congrats on your recent deal and best of luck on the next!

@Satha Palani

Hello! Possession is typically granted at settlement and there is a paragraph in the Central Virginia purchase agreement template that allows for different options. Most sales are conducted this way and keys transfer at settlement (closing).

Fannie Mae's addendum, however, specifies that possession will not occur until funding. So the closing agent is correct, you should receive keys once the deed has been recorded and funds have been received by Fannie Mae's title company.

Hope this helps!

@Kyle Scholnick

It also depends on how you define a good area. If vacancy is the primary concern, the North Side of Richmond is almost 0% vacancy at market value rents but you tend to have high turnover so your vacancy rate could increase depending on the system you have in place for rehabbing after vacating. 

The West End of Richmond and Henrico is also relatively low vacancy and can attract a much more stable long term tenant but you'll pay a lot more for the same sqft there than you will in the city. 

Conventional wisdom says to look for properties near colleges, in this case VCU since UofR is a primarily on campus residency. However, the traditional student rental neighborhoods (Fan, Carver, Jackson Ward, Oregon Hill, Museum District, etc) are so hot that cash flow is non-existent without a huge down-payment.