As a city on the rise, Richmond has seen a surge in real estate investing over the last few years. Renters and buyers alike are on the hunt for quality homes, and savvy investors are meeting that need — often at great financial gain.
It may be a seller’s market, but with interest rates at an all-time low, it’s also an incredible time to buy property in Richmond. If you’ve been thinking about investing in real estate in Richmond, the team at Ruckart Real Estate can guide you through the process — from finding the perfect Richmond investment property to making it profitable. Get started with these simple steps.
Educate yourself on real estate investing.
When done correctly, real estate investing can make you a lot of money. When done incorrectly, it can destroy your finances. So take the time to do your research before you jump in. Read articles and listen to podcasts — “Bigger Pockets” is a favorite around Ruckart HQ. Maybe even read a book or two!
Find a real estate investing mentor.
The real estate investment process is complex and confusing. The good news is, you don’t have to go it alone. A number of our team members at Ruckart Real Estate specialize in real estate investing and are available to help you navigate the process.
Our own Showing Specialist Nathan Wine started learning about real estate investing two years ago after meeting our Buyer’s Agent Josh Lee at a course that he teaches called “Wealth Building Through Homeownership.” (Here’s our blog post on that very topic, if you’re interested.) “He was an excellent mentor and found the first deal for us, teaching us along the way,” Nathan says. Nathan enjoyed the process so much, in fact, that he got his realtor license. Now he works alongside Josh helping buyers find their homes.
Decide what kind of real estate investment you want to make.
Do you want to buy a property and rent it out? Or would you rather purchase a property with plans to sell it after you’ve fixed it up? You’ll want to carefully examine your options and the potential risks and rewards associated with each before making your decision. Your mentor should be able to help you do that.
Buying, selling, and renovating a home in Richmond can be highly profitable (read about “flipping” homes in Richmond here), but Nathan opted to purchase a rental property. He and his wife bought a single-family home in Chesterfield County for $180,000, then invested $25,000 in repairs. After the upgrades, it appraised for $230,000. It currently rents for $1550 a month and the mortgage is $830, so Nathan and his wife get $720 in cash flow. The house appreciates 3%-5% year over year. They’re closing on their second rental property in Manchester in the near future.
Choose the area you want to invest in.
This could be a decision driven solely by numbers, or you might want to invest in a particular area for personal reasons. Maybe it’s convenient for you, or you have a genuine interest in making a difference in an up-and-coming area. It also depends on whether you intend to sell the property or hold onto it.
“If you buy and hold with an appreciation play in mind, then I believe Richmond City to be the best bet,” Nathan says. “Within the city, Manchester, Church Hill, Northside, and Woodland Heights/Forest Hill have a lot of development currently happening.”
Make your move.
Buying your first investment property can be intimidating, but with a knowledgable team backing you, you can make your move with confidence. As we like to say here at Ruckart Real Estate, “Don’t wait to buy real estate, buy real estate and wait.” Reach out to our team today to learn how much you can gain from investing in real estate in Richmond.