Real Estate Investor Resources in Virginia
- Adam Garrett
- Jun 26, 2023
- 5 min read
Updated: Jun 5
Here is my investor central for some of my main pages that could be particularly applicable to investors. Keep in mind that I have many more articles that will be applicable for various other elements of investing, so don't limit your search on my website to here.
Articles by Adam Helpful for Investors:
Purchase
Financing
Fixer Upper Loans (typically for owner-occupant investors)
Recommended Calculators - One of the most pertinent of the calculators I mention for investors is the cash flow calculator here
Commercial Property & Investment Property Government Incentives
Rental
While Holding
Repair Related:
1. Where to Find Equipment To Borrow/Lease/Purchase for Your Property Repairs/Reno/Cleaning
2. Financing Repairs/Renovations Prior to Sale
3. Commercial Property Government Incentives
4. Credit Card Strategies for Home Expenses
Risk Mitigation & Upkeep:
Recommended 3rd Party Resources
Recommended Websites: Bigger Pockets Rich Dad Recommended reading for landlords: Rich Dad Poor Dad Boundaries -while not specific to being a landlord, this one is especially helpful for Christians considering being a landlord in light of the need to evict and otherwise set boundaries with tenants & property managers Recommended games for landlords: Cash Flow (free online version or paid board game)
5% Down Investor Loans
For certain VA foreclosures, there's a program to buy with as little as no money down even if you aren't a veteran as long as you plan to occupy the property. It's even available to non-owner occupants for as little as 5% down.
"The https://listings.vrmco.com site will show a program logo stating “This property qualifies for seller financing”. You can also set search parameters to only search Vendee™-eligible properties."
Eligible states include VA, MD, NC, & more.
https://www.benefits.va.gov/BENEFITS/factsheets/homeloans/vendee.pdf
Capital Magnet Fund Program: Government Incentive for Low-Income Housing
Per CDFIFund, "The CMF Program offers competitively awarded grants to CDFIs and nonprofit affordable housing organizations to finance affordable housing solutions and community revitalization efforts that benefit individuals and families with low-incomes and low-income communities nationwide. To date, the Capital Magnet Fund has:"
Map Courtesy CMF Public Viewer
Virginia Opportunity Zones
Per DHCD, "Taxpayers can get capital gains tax deferral for making timely equity investments in Opportunity funds that then deploy capital into Opportunity Zone business and real estate ventures. This is an economic and community development tax incentive that provides an avenue for investors to support distressed communities to address areas of the Commonwealth that have experienced uneven economic growth and recovery. The tax incentive offers three benefits; tax deferral, tax reduction through long-term investment, and exclusion of certain capital gains tax."
Image courtesy VEDP
Communities of Opportunity Tax Credit
"You may qualify to claim this credit if:
You’re a landlord with qualified housing units participating in the Housing Choice Voucher program. Housing units may be located anywhere in Virginia.
The Virginia Department of Housing and Community Development (DHCD) administers this credit.
What is it?
An income tax credit equal to 10% of the annual market rent for the specific qualifying housing unit. We’ll prorate the credit for a unit that is qualified for less than a full year.
The credit cannot be greater than your tax liability. You may carry forward any unused credits for 5 years. You can’t claim this credit and the Rent Reductions Credit for the same housing unit in the same year.
Claim the credit against the following taxes administered by Virginia Tax:
individual income tax
corporation income tax"
Livable Home Tax Credit
"You may qualify to claim this credit if:
You purchase or build a new accessible residence; or
You retrofit an existing residence with accessibility features
The Virginia Department of Housing and Community Development (DHCD) administers this credit.
What is it?
A tax credit equal to:
$6,500 for the purchase of a new accessible residence; or
50%of the cost of retrofitting an existing residence, not to exceed $6,500
Rental units are not eligible for this credit. The credit cannot be greater than your tax liability. You may carry forward any unused credits for 7 years."
Are the Cheapest Properties a Good Idea?
If your primary occupation is one of a builder or class A contractor with decades of experience, these can be good if you're planning on doing a lot of the work yourself (especially for properties that you tear down among builders) or with your team of employees or cost-effective subcontractors that do a lot of other work for you. If rehabbing, if it's "cheap", it should still have "good bones", not cheap bones.
Bigger Pockets excerpt from "Don’t Buy That Cheap Property! (UNLESS…)"
"In the forums this week, a discussion started around this very topic. A new investor in my area (Rochester, NY – another area that Josh has added to his list of areas to avoid) was asking about getting started and said “I’m looking for a 30k-40k property”. Knowing how much you want to spend is important, but it is not the main criteria that you should be focused on when evaluating investments. Instead you should be looking at things like:
What are your investment goals?
How much cashflow (profit left after all expenses paid) does an investment yield?
How much cash on cash return (cashflow compared to your investment) does the property yield?
How much of a headache factor will the property be?
Saying you want to spend $30k – $40k when you want yo purchase a car is fine, but it is not the most important criteria to focus on for an investment...
“You don’t want to start investing in Rochester on 30-40k houses. You need to find yourself a VERY good property management company that has experience dealing with the headaches and issues that come with houses in those kinds of neighborhoods. If you want a fairly turnkey property, expect to pay at least 90k for a nice duplex that could give you a reasonable amount of cash flow.”
And this is why Josh and many other seasoned investors really try to drive home that cheap property does not make it a good deal. It is important for people to realize that price is not everything and it is important to look at the entire picture when evaluating a potential deal. Does the area support the type of investing that you want to do? Do the numbers look good on paper? Will you be able to achieve the numbers on paper in real life? These are all very important questions to ask."
See also:
Investing in "Cheap" Real Estate: A $10 Million Pig Is Still a Pig
Related:
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