Choosing the right investment market in Virginia is the secret behind generating sustainable passive cash flow. Regardless of whether you are seeking low entry costs, optimal monthly rent prices or the long-term appreciation potential, here is a closer look at some of the best performing Virginia real estate markets for fix-and-flip projects.
With a large millennial population base accounting for over a third of the nearly one-million strong population, Richmond is prime real estate for a fix-and-flip investment property. As millennials start to hit ideal homebuying age, there is an increased demand for properties in the Richmond area as only 1.3% of institutional investors acquired property this year—meaning property prices are still affordable and offer great yields. Richmond and the surrounding areasare jam-packed with a variety of amenities from the Virginia Museum of Fine Arts to a vibrant culinary scene. The median sales price remains an affordable $235,000, which translates into a low barrier of entry for aspiring real estate investors. Property is appreciation at a healthy 2% per year in Richmond, which bodes well for long-term profitability.
The allure of fun in the sun is sure to draw viable buyers for a recently flipped property. Virginia Beach is the largest city in the entire state with a population of 425,000 residents and is constantly ranked as one of the most family-friendly areas. Population and employment growth are steadily rising as well. The city boasts a bustling town center, a vibrant social scene, and many outstanding restaurants—all of which will help investors in selling their rehabbed properties at a premium price point. With three and a half military bases, agriculture and tourism all supporting the booming local economy, meaning that potential homeowners will have the buying power and confidence to snap up promising real estate.
Also referred to by locals as the “City of Seven Hills,” Lynchburg boasts a rich and storied history that shaped its currently thriving culture. While its historical architecture, lively downtown area and outdoor recreation draw crowds from all over, the city is also home to some of the best public-school systems Virginia has to offer. That is prompting a notable rise in the population as homebuyers with children flock to the area. On top of all that, Lynchburg is also host of five colleges. The average home sales price is a very affordable $153,000—which has risen by 7.2% in the last year alone. Real estate investors should get involved in this up-and-coming market soon while the prices are still favorable.
If you are a fan of laid-back living on the water, then Norfolk is the place for you. Homeowners can enjoy sailing, watersports, and scenic views everywhere they look, making it easy for real estate investors to quickly resell renovated properties. With a bustling main street and playing host to NATO headquarters and the Atlantic Fleet of the Navy, the largest naval base in the world,Norfolk and the region have a very strong economy and a healthy job growth rate. More and more employees and military personnel will be moving to the area in the coming years, and they will all need a place to live. What’s more, Norfolk is also the location of Old Dominion University and Norfolk State University, which is great news for property fix-and-flip projects as students and faculty are always on the hunt for flexible and affordable housing options.
Roanoke is one of the top-performing markets in Southwest Virginia and has a property to fit any investment approach—from commercial spaces to multi-family complexes. It is the region’s economic and social hub, meaning there is excellent employment opportunities that has led to an ever-increasing number of incoming young professionals all looking for a place to live. With a growing population of over 315,000 residents, landlords should have no concerns with finding viable tenants. Home to Roanoke College and within driving distance to a number of other higher education options, rental properties catering to students and millennials will perform well indefinitely in this quaint, historic city.
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When it comes to funding, having the right lending partner can make all the difference—especially when investing in what can oftentimes be a complex and nuanced real estate sector like fix-and-flip properties. The experts at Coastal Capital Funding have years of experience providing efficient and innovative construction funding solutions. We are intimately aware of the unique challenges and concerns real estate investors must navigate in this exciting asset class. Contact us today to learn more about how we can help you reach your investment goals.