Where do I buy an investment property in Charlottesville?
Here in Charlottesville, the University of Virginia drives a great deal of the investment property decisions as many investors would like to capture the student/grad student/medical resident market with their choice of property, so location is key.
The other areas where investors like to be are near the Law/Darden and JAG schools or closer to NGIC/DIA.
Most Popular Locations
The most popular addresses to invest in are 1800 JPA – off Jefferson Park Avenue and just down from the main Grounds at UVA – Walker Square and Estes Street – located near the train station on West Main Street and within sight of the hospital – or Wertland Street, which is within sight of the Corner.
Listings in these buildings come on the market and tend to get snapped up quickly – they also tend to have one or two bedrooms on average with the rare three bedroom being of particular interest. Many people like that they are within walking distance of UVA and the Downtown Mall.
Mid to North of Town
For those who want to be closer to the Darden/Law and JAG schools, Turtle Creek and Hessian Hills are popular choices – they tend to either have one to two bedrooms, while there are some three-bedrooms available, but not often. Turtle Creek also offers two-bedroom units with an extra solarium that could be used as a guest room or office space.
People who work at NGIC/DIA gravitate to Forest Lakes, Hollymead, Preddy Creek or Carrsbrook – these tend to be single-family homes, but some townhouses are also available in Hollymead and Forest Lakes.
Rio Road Area
Along Rio Road, which is a great location close to either Rt. 29 and points north, UVA and Barracks Road or Stonefield, Birnam Wood has proven to be quite popular with investors. There is a new development of townhouses going in near the back being currently developed by Gibson Homes.
Four Seasons offers a mix of single family, townhouses and condos as well as the ACAC Water Park and gym. On the other side of Rio, Riverrun at Pen Park offers a wide range of options in many different styles – plus the added bonus of being near Pen Park and minutes from Downtown or Rt. 29 and points north.
This area has grown by leaps and bounds over the past five years with Pavilions at Pantops, Carriage Hill, Riverbend being popular choices, while Rt. 20 north has Cascada and Fontana. Riverside is another new development that offers access to Darden Towe Park and the river as well as access to Downtown, UVA and points north.
When it comes to investing, an investor has to weigh in a number of factors to see if the price outlay is worth the return. Things like the monthly mortgage (unless they paid cash), taxes, HOA fees, overall maintenance, paying a property manager’s fee, and utilities (if the tenant is not taking care of this themselves) all play a role in this decision process.
What you can expect to get for rent?
Because of the low inventory for potential home buyers, rentals have become a boom market for investors. Five to 10 years ago, a unit at Turtle Creek, for example, could bring in $600 a month, while now the rates now are around $1,100 to $1,200 a month and that’s on the reasonable side.
Single Family homes regularly command $2,200-$2,500 a month depending upon their location and condition.
For a better analysis of the market, be sure to contact your Solutions Agent and they would be happy to help answer any questions you may have about a specific area for investment.