As an agent in Hampton Roads, Virginia, are real estate market here has been thankfully steady compared to a large majority of other marketplaces. I have been specializing in RE investments for about 5 years, and work with a large amounts of investors, including Rehabbers.
I have been advising my rehab clients to start looking at multi-family vs. single family for a couple of reasons. There are always investors in the market, so as long as you can negotiate a great deal, fix it, and sell it for a price where another investor can make cash flow, it will sell. Also, in my opinion, it seems as though our mulit-family and small residential commercial properites have held their values much better than single family. The biggest motivating factor I share with my clients is that with our market slower, it takes longer to sell, so why not go multi family and rent the property while it’s on the market for sale, and make positive cash flow. Virtually no holding costs at that point and it takes the burden of an empty house and payment off your shoulders. You most certainly can’t do that with single family and hope that an investor will come along, because they usually won’t make the necessary cash flow without putting a large downpayment. Buyers that want to purchase will find something without a lease!
All in all, there is still hope for rehabbers in our market. This is one of the safest ways to rehab in our market and not lose all your profits while trying to sell. If you would like other investment ideas, visit my website at JoshSellsVirginia.com
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