They say Virginia is for lovers, and there is definitely plenty to love for aspiring real estate investors—especially those concentrating on AirBnb and rental properties. Ideally situated in the Mid-Atlantic, Virginia is close to just about everything: from the employment hub of Washington D.C. to the sandy beaches of the Chesapeake Bay. Whether you’re in search for vibrant urban cities, quaint mountain towns or historical attractions, Virginia certainly has something to offer all lifestyles. Being one of the 13 initial colonies, the federal government has for centuries had a significant influence on the local economy that continues to present day—particularly in neighborhoods close to the nation’s capital, the headquarters of the Central Intelligence Agency and the Pentagon. There is a steady stream of residents choosing to relocate to Virginia, and the most popular demographic are young professionals seeking job opportunities in D.C.
All of these factors make Virginia a perfect market for real estate investors. The state plays hosts to multiple professional sports teams, has world-class event venues and idyllic natural attractions that make the area a sought after destination for conferences, games, concerts and vacations—all of which draw a steady stream of viable tenants seeking flexible housing options for short- to longer-term stays. Real estate investors should take note of the following cities in Virginia where the market is primed to acquire reliable revenue-generating assets for rental properties.
VIRGINIA BEACH
It’s obvious by the city’s name that it’s primary draw is the ocean and all the fun-filled activities that go along with it—but you would be remiss to assume that the sand and the sun is all that Virginia Beach has to offer. The area boasts a plethora of distinctive neighborhoods and communities each with their own unique culture and lifestyle. Virginia Beach is the most populous in the state, with around 425,000. Despite its considerable size, the city is extremely family-oriented and safe, with its own lively town center, an active art and music scene and many award-winning restaurants. With three major military installations, a booming agricultural market and booming tourism offerings, the local economy is strong and resilient—attracting educated millennials in droves that move to the city in search of the perfect blend of social and economic opportunity that the area is known for. Based on current market data, landlords can anticipate 26 leads and under two weeks on the rental market, meaning that properties will not sit vacant for long. Property values are appreciating at an above-average 3.9% annually and the average two-bedroom unit can be rented for around $1200 a month.
NORFOLK
Whether you say “Nor-folk” or choose to blend in with the locals by saying “Naw-Folk,” there’s one thing that’s not up for debate: if you love living by the water, Norfolk is the place for you! With the Chesapeake Bay, Atlantic Ocean and several rivers surrounding the city, it is the perfect location for outdoor lovers seeking a prime location for sailing, watersports and all-around coastal living. The picturesque community has been designated as an official Tree City with sprawling displays of trees and flowers enhancing the many historic and beautiful residential areas. In addition to having a vibrant downtown area and serving as the headquarters for NATO forces, Norfolk is also home to the biggest naval base on the planet and has two major universities in Old Dominion University and Norfolk State University. Collectively, these are all positive qualities for investors as students and military members alike are constantly on the hunt for affordable living accommodations. Norfolk real estate investors can expect an average of 39 leads and just 16 days on the rental market before their home is occupied at a premium rate optimizing return on investment.
RICHMOND
The majority of neighborhoods comprising Richmond have high rental demand that offers investors the potential for reliable passive income for the foreseeable future. Certain locations within the Richmond area exhibit increased demand due to their proximity to colleges and notable regional employers such as Virginia Commonwealth University, the University of Richmond and the Medical College of Virginia. Accordingly, investors should focus their property searches in and around the iconic Fan and Museum Districts as well as Oregon Hill, Monroe Ward and Shockoe Bottom. As the state capital of Virginia featuring a vibrant social scene and healthy, diverse local economy, investors would be well-advised to put Richmond at the top of the list when it comes to viable investment markets.
CHESAPEAKE
With the largest concentration of military personnel outside of the Pentagon, with over 86,000 active-duty personnel stationed in the immediate area representing all branches of the Armed Forces, Chesapeake is a regional epicenter of economic activity and stability. Due to the high concentration of military members, a recent market analysis conducted by Realtor.com indicates that the Chesapeake housing market has the lowest median down payment in the country as service members typically take advantage of the VA Loan program. This increases potential homebuyers’ buying power and contributes to an active real estate marketplace—which is great news for real estate investors. With a constant stream of service members relocating to the area there will always be a high demand for housing options, meaning your rental property will not sit vacant for long.
NEWPORT NEWS
Newport News’ ideal location just minutes from Williamsburg and a short drive to Virginia Beach makes it an in-demand area for potential homebuyers and renters alike. Add to that a nationally-recognized school system—which have been recognized by Newsweek as the top 5% collectively in the country—and a local government renowned for its commitment to sustainable environmental practices like reducing collective energy usage and incentivizing residents to be more environmentally conscious, and you have an ideal real estate investment market. Investors should start their investment property search in the newly revamped Center City neighborhood that is the heart of downtown and boasts profitable businesses, restaurants and brand-new residential properties that is sure to draw prospective buyers looking for housing options.
The Capital You Need, When You Need It
With 30 years of industry experience, Coastal Capital Funding has a proven track record of success partnering with real estate investors, landlords and new home builders throughout the Hampton Roads region and across the country. In an increasingly competitive market, it’s now more important than ever to have efficient access to flexible financing options so you can capitalize on emerging opportunities. With a comprehensive suite of customizable loan programs specifically geared towards real estate investors and a streamlined underwriting process with no unnecessary red tape, Coastal Capital Financing is the logical choice when it comes to private lenders. Contact us today to learn more about how we’ll take your investment business to the next level.