Every once a while, I get a version of the same conversation -

A buyer from out of town, usually relocating for work, sometimes selling a Northern Virginia or Charlotte home to come back to family in Richmond, sits down across from me and asks some variant of:

“Which country club should I be thinking about?”

But it’s almost never the question they actually mean.
What they really mean is something more in line of:

That’s a fair question. It also turns out to be a hard one to answer in passing, because the honest answer involves seven private clubs, six or seven distinct neighborhood pathways, and a set of small but consequential trade-offs that aren’t published anywhere. Every time I try to answer it on the fly, I leave out something the buyer needed to hear.

So I finally sat down and wrote it all out.

What’s in it

I picked the seven Richmond clubs that genuinely compete for luxury buyers’ attention:

• Country Club of Virginia, Hermitage

• The Dominion Club

• Salisbury, Willow Oaks

• Westwood

• Magnolia Green / Independence

  ---

I wrote a balanced, honest comparison of each one. Not a ranking, because the right club depends entirely on who you are and how you live. But a real attempt to capture, for each club, who it’s best suited for, what people genuinely love about it, and what the honest considerations are that the membership office probably won’t lead with.

The guide also includes something I haven’t seen anywhere else: a map of which Richmond neighborhoods quietly feed into which clubs. CCV members tend to live in certain zip codes. Hermitage members tend to live in others. The Dominion Club has a direct membership pathway for Wyndham residents. These patterns aren’t published, they’re observed over years of doing this work, but understanding them changes how you shop for a home, because the home and the club are really one decision rather than two.

There’s a small interactive comparison tool built in. You can pick any two or three clubs and see them side by side: location, founding year, golf situation, dues tier, style, and the rest. I built it because I got tired of making the same comparison verbally on every call.

Why I’m sending it to you first

You’ve been reading these letters long enough to know I don’t pitch you in them. This isn’t a pitch either. The guide is freely available on my site. Anyone can read it.

But I wanted you to have it before I share it more broadly, because the kind of thinking that goes into this letter is the same kind of thinking that went into the guide. If it’s useful, share it with someone who’d benefit. If you have feedback — clubs I missed, neighborhoods I got wrong, things you wish I’d covered — write back. I read everything that comes through and the next version will be better for the response.
Richmond Country Clubs.

A small editorial note;

This is the first of a few longer-form guides I’m working on this year.

Next up is a luxury buyer’s guide to competing for Richmond properties at the top of the market what to expect in multiple offer situations, how the high end of this market actually behaves, and how to position yourself well when the right home surfaces.

If there’s something specific you’d like me to write about, the reply line is open.

Leave a comment

Until next time,

-Daniel

Daniel Yoon · Real Estate Professional
804.896.2694
daniel.yoon@exprealty.com
danielyoonrealty.com

How buyers actually decide what your home is worth (and why your upgrades might not matter)

No one told you how buyers really think about price when you’re selling your home yourself. So I will.

This is about how value gets set in a buyer’s head before they ever walk through your door. This is not about staging tips, photography, or negotiation tactics. Those come later. Price comes first.

At the end of this article, you will understand:

∙How buyers actually compare homes and assign value

∙Why your upgrades may be worth less than you think

∙The two (and only two) levers you have to increase value

1. Buyers shop by comparison. Always.

Buyers do not look at your home in isolation. They line it up next to every other home in the same price range and ask one question. Which one gives me the most for my money.

That’s it. That’s the whole game.

They look at your price. They look at your features. Then they compare both against homes that recently sold and homes currently sitting on the market. Pretty simple. Pretty unforgiving.

2. The car dealership analogy

Picture two dealerships on the same street.

Dealership A has a car for twenty thousand dollars. Dealership B has the same exact car for twenty thousand dollars, but it comes with a moon roof, an upgraded sound system, and nicer rims.

Which one is the better value?

Obvious. Dealership B.

Same price, more stuff.

Now flip it.

Dealership A drops the bare bones car to $5,000. Same car, no moon roof, no sound system, stock rims. Which is the better value now?

Also obvious. The cheaper one.

Your home works exactly the same way. Buyers are running this math whether we like it or not.

3. You only have two levers

If you want to increase the value of your home in a buyer’s eyes, you have two options. That’s it.

1. Lower the price

2. Add more features and benefits at the same price

Most sellers are not about to rip out a kitchen and put in a new one before listing. So unless you’re planning to add real, meaningful features, your only honest lever is price.

Price it right.

That’s the only job.

4. Stop pricing like a seller. Start pricing like a buyer.

This is where most FSBO sellers trip themselves up. You spent ten years in this house. You painted the nursery. You put in the koi pond your wife wanted. You finished the basement yourself one summer.

That’s your story. It is not the buyer’s story.

The buyer is asking one question. What is this house worth to me, today, compared to everything else I can buy with the same money. Your memories do not show up in that calculation.

To sell your home without an agent, you have to flip the chair you’re sitting in. Stop looking at your house from inside it. Start looking at it from the buyer’s car as they pull into the driveway, with the listing of the house down the street already pulled up on their phone.

5. The bells and whistles trap

Here’s the part that stings.

Just because you added bells and whistles does not mean a buyer will pay more for them. And here’s the kicker. Even if a buyer wants to buy your home, they might be planning to rip out the very thing you’re most proud of the day they get the keys.

How much are those upgrades worth then? Zero. Sometimes less than zero, because now they have to pay to remove them.

So ask yourself an honest question. Did you add that for the next buyer? Or did you add it for your own enjoyment while you lived there?

If the answer is enjoyment, that’s fine. You got your money’s worth in years of using it. Just don’t expect a stranger to pay you back for it at closing.

6. The fifty thousand dollar question

Imagine you’re the buyer. Two similar homes are sitting on the market. One is listed at $500,000. & another at $450,000.

• Same neighborhood.

• Same square footage.

• Same general condition.

Which one are you buying?

And more importantly, what would you do with the extra $50,000 in your pocket?

• New kitchen.

• New floors.

• Pay down the mortgage.

• Take a vacation.

• Build the deck you actually want, not the one the previous owner thought you’d want.

You’d take the cheaper house every single time. So would your buyer. So would almost everyone.

Final words.

Selling your home without an agent is not impossible. It is not even that complicated. But it does require you to do one hard thing. You have to stop being the seller in your head and start being the buyer.

The buyer does not care what you paid. The buyer does not care what you put into it. The buyer cares about one thing:

“What can I get for my money, compared to everything else on the market right now?”

Price the home for that buyer. Not for you.

If this helped you think about your sale differently, share it with someone you know who’s about to list their own home. They need this more than they realize.

Share

And if you want a second set of eyes on what your home should actually list for in today’s market, reply to this email or book a quick call.

No pitch. Just numbers & free advice.

Daniel Yoon

804-896-2694

DanielYoonRealty.com

If you’re a VA buyer, this is the best window you’ve had in years to get the seller to cover your costs. And I don’t just mean closing costs. I mean the funding fee, prepaid expenses, and in some cases, paying off your existing debt at the closing table.

But here’s the problem. Most VA buyers (and honestly, most agents) don’t understand how seller contributions actually work on a VA loan. They hear “4%” and assume that’s the ceiling for everything. It’s not. And that misunderstanding is costing veterans thousands of dollars on every transaction.

Let me break down how this actually works.

• The Misconception That Costs VA Buyers Money

The most common thing I hear from buyers and agents: “The seller can only contribute up to 4% on a VA loan.”

That’s not accurate.

The VA doesn’t cap total seller contributions at 4%. It uses a two-bucket system. One bucket has no cap from the VA. The other is capped at 4% of the home’s appraised value. When you combine the two, the total seller contribution can be well above 4%. Sometimes significantly above it.

If you don’t separate these two buckets in your offer, you’re negotiating against yourself before you even start.

• Seller-Paid Closing Costs (No VA Cap)

The first bucket is standard closing costs. These are the normal transaction fees that come with buying a home

∙Origination fees

∙Appraisal

∙Title insurance

∙Recording fees

∙Attorney fees (in states that require them)

∙Credit report fees

The VA does not set a percentage cap on how much the seller can pay toward these items. The seller can cover all of them. Every dollar the seller pays in this bucket is money the buyer doesn’t bring to closing, and none of it counts toward the 4% concession limit.

On a typical purchase, this bucket alone runs somewhere between $7,000 and $12,000 depending on the loan amount and location.

• Seller Concessions (Capped at 4%)

The second bucket is where the 4% rule actually applies. These are items the VA defines as “concessions,” meaning extras beyond normal closing costs that directly benefit the buyer.

What counts toward the 4% cap:

∙The VA funding fee

∙Temporary interest rate buydowns (like a 2-1 buydown)

∙Paying off the buyer’s debts (credit cards, auto loans, collections, judgments)

∙Prepaid property taxes and insurance beyond what’s standard

∙Lease buyouts

• Gifts like appliances or furniture included in the sale

The 4% is calculated from the home’s reasonable value on the VA Notice of Value (the appraisal), not the loan amount. So on a home appraised at $350,000, the concession cap is $14,000.

Important: permanent discount points that are in line with current market rates are generally treated as standard closing costs, not concessions. Only points above what’s considered normal for the market get counted toward the 4%.

The Play Most People Miss - Debt Payoff at Closing

This is where it gets interesting and where most buyers have no idea what’s possible.

Under VA guidelines, the seller can pay off a buyer’s consumer debt at closing. Credit card balances. Auto loans. Medical collections. Judgments that need to be cleared for loan approval.

These payoffs count toward the 4% concession cap. They don’t touch the closing cost bucket. So you’re using the concession room for something that actually improves your financial position, not just covering transaction fees.

Why does this matter?

Because paying off a debt at closing lowers your debt-to-income ratio. That $350/month car payment disappears from your DTI calculation once it’s paid in full. For buyers who are on the edge of qualifying, this can be the difference between getting approved and getting denied.

Think about that for a second. You can walk into a home purchase with a car payment and a credit card balance, and walk out of closing with both of those gone. Paid by the seller. Within the VA’s own guidelines.

Real-World Scenario:

Here’s a simplified example to show how the two buckets stack.

Purchase price: $350,000

VA appraised value (NOV): $350,000

Bucket 1:

(Closing costs, no VA cap):

∙Origination fee: $3,500

∙Appraisal: $600

∙Title insurance: $1,800

∙Recording/transfer fees: $400

∙Other lender and settlement charges: $2,200

∙Bucket 1 total: ~$8,500 (all seller-paid, none of this counts toward 4%)

Bucket 2:

(Concessions, capped at $14,000):

∙VA funding fee: $8,015 (2.15% for first-time use, rolled into loan or paid here)

∙Credit card payoff: $3,200

∙Auto loan payoff: $2,500

∙Bucket 2 total: $13,715 (under the $14,000 cap)

Total seller contribution: $22,215

Buyer closes with $0 out of pocket. The funding fee is covered. And they eliminated $5,700 in consumer debt at the closing table. Their monthly obligations actually went down compared to when they were renting and carrying those balances.

That’s not a loophole. That’s the program working as designed.

Why This Works Better Right Now:

Two years ago, sellers had five to ten offers on every listing. Asking for closing costs got your offer tossed. Asking for concessions on top of that? Not a chance.

The market has shifted. Inventory has increased in most areas. Homes are sitting longer. Price reductions are more common. Builders with standing inventory are offering significant incentives to move units.

This is the environment where a well-structured VA offer with both closing cost coverage and concessions actually gets accepted. Sellers who are motivated will work with you on this, especially when your agent explains that VA concessions come out of the seller’s proceeds, not out of thin air.

New construction is an especially good opportunity right now. Builders have budgets for buyer incentives, and many are already advertising rate buydowns and closing cost help. If you understand the two-bucket rule, you can structure those incentives to hit both buckets and maximize the benefit.

What to Do With This:

If you’re looking to buy using your VA loan benefit, here’s how to actually put this to work:

1. Get pre-approved with a lender who specializes in VA loans. Not a lender who “also does VA.” A lender who understands the concession guidelines, the two-bucket distinction, and how to structure a Loan Estimate that separates them clearly.

2. Before you write an offer, ask your lender for an itemized breakdown showing which costs fall in Bucket 1 (closing costs) and which fall in Bucket 2 (concessions). Know exactly how much room you have under the 4% cap.

3. Structure your offer with two separate line items. One for seller-paid closing costs. One for seller concessions up to 4% of the NOV. Don’t lump them together with a generic “seller credit” line.

4. Recalculate after the appraisal. The VA Notice of Value determines the 4% cap. If the appraisal comes in lower than your contract price, your concession room shrinks. You need to rerun the math immediately and adjust if necessary.

5. Work with an agent who understands this. If your agent says “the seller can only pay 4%,” they don’t know VA guidelines well enough. That one misunderstanding can cost you five figures at closing.

None of this is a hack. It’s not a workaround. It’s the actual VA guidelines, published by the Department of Veterans Affairs, working exactly how they’re supposed to.

The benefit exists for a reason. But it only works if the people around you (your agent, your lender, your loan officer) know how to structure it correctly.

In this market, with this much negotiating room, there’s no reason a VA buyer should be leaving money on the table. Ask better questions. Separate the buckets. Structure the ask.

That’s it. Happy to answer questions in the comments if anything needs clarifying.

If you know anyone veteran or active duty service member who would benefit off this information, share it with them!

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No one told you there’s a way to double (or triple) your rental income on a property you already own without flipping it, selling it, or turning it into an Airbnb. So I will.

This is about a specific rent-by-the-room model called co-living. And a platform called PadSplit that’s making it operational at scale across 30+ U.S. markets, including Richmond, VA and Virginia Beach.

This is not about house hacking. This is not about finding roommates on Craigslist. And this is not about short-term rentals.

At the end of this newsletter, you will master:

• How co-living works and why the economics beat traditional rentals by a wide margin

• The real numbers: a side-by-side breakdown on a single property

• How PadSplit handles screening, payments, and tenant management so you don’t have to

• The risks, downsides, and when this model doesn’t work

• How to evaluate whether your current (or next) property qualifies

  ---

  1. The Problem With Traditional Rentals in 2026

  Here’s the setup most rental property owners are working with right now.

  You buy a single-family home. You find one tenant (or one family). You sign a twelve-month lease. You collect one rent check per month. And you hope that check covers your mortgage, taxes, insurance, maintenance, and maybe leaves a few hundred dollars in your pocket.

  For a lot of investors, that math is getting tighter every year. Insurance premiums are climbing. Property taxes keep adjusting upward. Maintenance costs don’t care about your cash flow projections. And if that one tenant stops paying or moves out? Your income drops to zero overnight while the bills keep coming.

  The traditional model puts all your eggs in one basket. One tenant, one lease, one check. When it works, it works fine. But when it breaks, it breaks completely. And in 2026, the margin for error on a single-family rental is thinner than most investors want to admit.

  That’s the gap. And that’s exactly where co-living steps in.

2. What Co-Living Actually Is (and Isn't)

Co-living is renting individual rooms in a single property to separate tenants instead of renting the entire house to one household.

Each tenant gets a private, furnished bedroom with a lock. They share common areas like the kitchen, living room, and laundry. Utilities and Wi-Fi are included in their rent. It’s an all-in-one arrangement for the tenant and a higher-density income stream for the owner.

This is not a new concept. Boarding houses operated this way for over a century. What’s new is the technology layer that makes it manageable without being a full-time job. Platforms like PadSplit handle the screening, rent collection, payment processing, and member management. The owner focuses on the property. The platform handles the people.

Let’s be clear about what this isn’t.

This is not house hacking. House hacking means you live in the property and rent out spare rooms. Co-living through PadSplit is an investment strategy. You don’t live there.

This is not Airbnb. Short-term rentals cater to travelers. Co-living caters to essential workers, tradespeople, and professionals earning between twenty thousand and forty-five thousand dollars per year who need stable, affordable housing. Average tenant stay on PadSplit is eight months. That’s not a vacation. That’s a home.

This is not a Craigslist roommate situation. Every PadSplit member goes through identity verification, income verification, and background screening before they’re approved. The platform also enforces membership rules, with fines and strikes for violations. This is structured. It’s managed. And it’s accountable.

3. The Math. Same House. Two Scenarios.

This is where it gets interesting. And where most investors start paying closer attention.

Let’s take a standard property: A four-bedroom, two-bathroom single-family home.

Scenario A: Traditional Rental

You rent the whole house to one family on a twelve-month lease. Market rent is $1,500 per month. That’s $18,000 per year in gross rental income before any expenses.

After mortgage, taxes, insurance, maintenance reserves, and vacancy (even if you only budget one month vacant per year), your net cash flow on this kind of property is often somewhere between $200 and $400 per month. Some months it’s less. Some months it’s a bill.

Scenario B: Co-Living Through PadSplit

You convert that same four-bedroom into five rentable rooms (dining rooms, large living areas, and finished basements can often be converted into additional bedrooms). Each room rents for $175 per week.

Five rooms at $175 per week equals $875 per week. That’s $3,791 per month. And $45,500 per year in gross income.

Even after factoring in higher utility costs (you’re covering electric, water, gas, and Wi-Fi for multiple tenants), furnishing costs, PadSplit’s platform fee, and a conservative vacancy buffer, the net operating income on this property is typically two to two-and-a-half times what you’d collect on a traditional whole-house rental.

The quick comparison:

Traditional RentalPadSplit Co-Living

Gross Annual Income $18,000 $45,500+

Vacancy Risk 1 tenant leaves = $0 1 room vacant = four still paying

Lease Type 12-month lease 12-week minimum, then weekly

Tenant Screening You handle it/PM. PadSplit handles it

Utilities Tenant pays Host pays

Furnishing Unfurnished Furnished (bed, nightstand, lamp)

That’s the same house. Same mortgage. Same property taxes. But a completely different financial outcome.

PadSplit offers an earnings calculator on their site where you can plug in your specific property details and market. Worth running before you write this off.

4. How PadSplit Works (The Operational Breakdown)

The concept is compelling, but concepts don’t pay mortgages. Here’s how it actually works from the host side, step by step.

Step one:

Property listing. You create an account on PadSplit and list your property. You set the price per room per week. PadSplit recommends pricing based on your market, room size, and amenities. You can also list a “quick listing” property up to sixty days before it goes live to build a waitlist of interested members.

Step two:

Screening. This is one of the biggest value adds. PadSplit handles all tenant screening, including identity verification, income or employment verification, and background checks. There’s no minimum credit score requirement for members, but every applicant must meet PadSplit’s approval criteria. Members agree to a set of membership rules and are subject to fines or strikes if they violate them.

Step three:

Move-in. Members can move in within twenty-four to forty-eight hours of approval. Rooms are furnished with a bed (full-size or larger), mattress cover, end table, lamp, and a built-in closet or armoire. The faster your rooms fill, the faster your income starts.

Step four:

Weekly rent collection. PadSplit collects rent weekly from each member. This isn’t just a billing preference. Weekly payments align with how hourly and essential workers actually get paid. It reduces missed payments and keeps cash flow steady. Payments are processed through the platform, so you’re not chasing checks.

Step five:

Ongoing management. PadSplit handles member communications, payment processing, and dispute resolution. But they are not a full property management company. You (or your property manager) are still responsible for maintenance, repairs, and property upkeep. This is an important distinction. PadSplit manages the people. You manage the building.

The numbers behind the operation:

• Average occupancy rate across PadSplit properties: above 90%

• Average member tenure: eight months

• 95% of members say they would recommend PadSplit

• PadSplit has housed over 70,000 people across 30,000+ rooms nationwide

Those aren’t projections. Those are reported operating metrics as of early 2026.

5. Why Investors Are Choosing This Over Airbnb

This isn’t a hit piece on Airbnb. Airbnb works. But the investor calculus is shifting, and it’s worth understanding why.

Earnings.

PadSplit properties generate consistent monthly income without seasonal dips. Airbnb revenue swings wildly depending on location, season, and local events. One bad quarter on Airbnb can erase the gains from a great one.

Regulatory risk.

Cities across the country are tightening short-term rental regulations. Some markets have outright banned them. Co-living through PadSplit operates under long-term rental frameworks, which face significantly less regulatory friction. Virginia Beach, for example, maintains relatively investor-friendly policies for room rentals when structured properly.

Occupancy.

PadSplit averages above 90% occupancy. Airbnb occupancy rates in most non-tourist markets hover between 50% and 70%, depending on the season.

Turnover costs.

Every Airbnb checkout means cleaning, restocking, and potential damage assessment. PadSplit members stay an average of eight months. That’s eight months of income before you even think about turning over a room.

Tenant quality.

PadSplit screens every member. Airbnb guests book with a credit card and a profile photo. The depth of vetting is not comparable.

Time to revenue.

A PadSplit property can be listed, filled, and generating income within weeks of setup. Airbnb requires ongoing pricing optimization, guest communication, reviews management, and constant operational attention.

None of this means Airbnb is dead. It means the risk-adjusted return on co-living is worth a hard look, especially for investors who are tired of managing a hospitality business when what they wanted was a rental property.

6. The Virginia Angle

If you’re investing in Central Virginia or the Virginia Beach area, this is worth paying attention to.

PadSplit is active in both Richmond and Virginia Beach. These aren’t “emerging” or “coming soon” markets. They’re operational now, with rooms listed and members living in properties today.

Richmond:

Room rentals start at $149 per week ($646 per month). PadSplit entered the Richmond market in 2021, initially with twelve units in the Petersburg area. They’ve expanded significantly since then, partnering with organizations like Anthem Healthkeepers Plus and Housing Families First to provide transitional housing for individuals re-entering the community after medical care.

Virginia Beach:

Room rentals start at $220 per week ($953 per month). The metro area has a housing deficit of nearly 68,000 homes. The median rent for a one-bedroom apartment is $1,554 per month. A tenant needs to earn at least $55,944 per year and put up over $3,100 upfront just to move into a traditional rental. For a huge portion of the workforce in Virginia Beach, that math doesn’t work. Co-living closes that gap.

What’s worth noting is that Virginia Beach maintains relatively investor-friendly policies for room rentals compared to many coastal cities that have cracked down on short-term rental activity. The regulatory environment here is favorable for this model.

The demand is real. The supply is short. And the infrastructure to operate in these markets already exists through PadSplit.

7. The Risks. When This Model Doesn't Work.

We don’t cover strategies without covering the downsides. Here’s where co-living gets harder.

Higher wear and tear.

Six to eight people sharing one kitchen, one washer, one dryer. Things break faster. Budget for more frequent appliance replacements and common area maintenance than you would on a traditional rental.

Turnover and vacancy management.

While average tenure is eight months, some members leave sooner. The twelve-week minimum commitment helps, but shorter stays mean more room turns. Each turn requires cleaning, minor repairs, and potentially replacing furnishings.

PadSplit is not a property manager.

This is the friction point most hosts underestimate. PadSplit handles member screening, rent collection, and communications. But if the AC breaks at 2 AM or a member reports a maintenance issue, that’s on you or your property manager. If you’re expecting fully passive income, this isn’t it.

Location and property requirements.

Not every property qualifies. The home needs to be in a market where there’s demand for affordable workforce housing. The layout matters. Bathroom-to-bedroom ratios, common area flow, and parking all factor into whether a property will perform well on the platform. A three-bedroom ranch with one bathroom is a harder sell than a five-bedroom with three baths.

Zoning and local regulations.

Some municipalities have occupancy limits or zoning restrictions that limit the number of unrelated adults who can live in a single-family home. Check your local codes before you commit. This varies city by city, and getting it wrong can mean fines or forced eviction of tenants.

You can’t overpay for the property.

This is true for any rental strategy, but it’s especially true here. The co-living model works best when you acquire the property at or below market value. If you pay retail and then try to convert, the numbers can get tight fast. The margins are real, but they require discipline on the buy side.

We don’t cover strategies without covering the downsides. Here’s where co-living gets harder.

Higher wear and tear. Six to eight people sharing one kitchen, one washer, one dryer. Things break faster. Budget for more frequent appliance replacements and common area maintenance than you would on a traditional rental.

Turnover and vacancy management. While average tenure is eight months, some members leave sooner. The twelve-week minimum commitment helps, but shorter stays mean more room turns. Each turn requires cleaning, minor repairs, and potentially replacing furnishings.

PadSplit is not a property manager. This is the friction point most hosts underestimate. PadSplit handles member screening, rent collection, and communications. But if the AC breaks at 2 AM or a member reports a maintenance issue, that’s on you or your property manager. If you’re expecting fully passive income, this isn’t it.

Location and property requirements. Not every property qualifies. The home needs to be in a market where there’s demand for affordable workforce housing. The layout matters. Bathroom-to-bedroom ratios, common area flow, and parking all factor into whether a property will perform well on the platform. A three-bedroom ranch with one bathroom is a harder sell than a five-bedroom with three baths.

Zoning and local regulations. Some municipalities have occupancy limits or zoning restrictions that limit the number of unrelated adults who can live in a single-family home. Check your local codes before you commit. This varies city by city, and getting it wrong can mean fines or forced eviction of tenants.

You can’t overpay for the property. This is true for any rental strategy, but it’s especially true here. The co-living model works best when you acquire the property at or below market value. If you pay retail and then try to convert, the numbers can get tight fast. The margins are real, but they require discipline on the buy side.

Final Words.

Co-living isn’t a trend. It’s a model that’s been around for over a hundred years, now running on infrastructure that makes it practical for individual investors.

The U.S. is short over seven million affordable rental homes for low-income renters. At the same time, millions of large single-family homes sit underutilized with one tenant and four empty bedrooms. Co-living connects those two problems into a single solution that benefits both sides. Residents get housing they can actually afford. Owners get cash flow that actually reflects the value of what they own.

PadSplit has housed over 70,000 people across more than 30,000 rooms. Their occupancy rates sit above 90%. They operate in both of Virginia’s key investment markets. This isn’t a pitch deck. It’s an operating business with real numbers.

Whether you convert a property you already own or buy your next investment with this model in mind, the math is worth running. The worst case scenario is that you spend fifteen minutes on their calculator and confirm that your current strategy is the right one. The best case is that you find an extra $2,000 per month sitting inside a property you already have.

Run the numbers. Then decide.

Have questions about whether co-living makes sense for a property in Central Virginia or Virginia Beach?

Reply to this email. We’re happy to walk through it and I can get you $2,000 as a sign up bonus they are offering for a limited time.

Know an investor who’s still renting whole-house and wondering why the margins are thin? Share this with them.

Want more breakdowns like this on strategies that most agents and investors aren’t talking about yet? Subscribe and we’ll keep them coming!

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How the program works and who qualifies

The Richmond Employee Homebuyer Assistance Program was established by City Council Ordinance 2023-257, adopted on October 10, 2023, with patronage from then Mayor Levar Stoney and Councilors Ellen Robertson, Cynthia Newbille, and Ann Frances Lambert. It replaced a narrower legacy program (City Code § 2-1209) that had been limited to sworn police officers, deputy sheriffs, public school teachers, and firefighters purchasing in “targeted areas.” The new program broadened eligibility to all full-time City of Richmond employees purchasing a primary residence within city limits.

Each qualifying recipient receives $25,000 in down payment and closing cost assistance. The program is administered by the nonprofit Housing Opportunities Made Equal of Virginia (HOME), led by Executive Director Tom Okuda Fitzpatrick, under Virginia Code § 15.2-958.2. legistar City oversight falls to Meghan Brown, Richmond’s director of budget and strategic planning.

To qualify, applicants must meet all of the following requirements:

• Employment: Full-time City of Richmond employee with at least 12 months of continuous permanent employment and a performance appraisal in good standing.

• Homeownership status: First-time homebuyer, or must not have owned a home within the last three years

• Income limits: Gross household income under $120,000 for households of two or fewer, or under $138,000 for three or more people

• Purchase price cap: Home cannot exceed $550,000

• Credit score: Minimum of 620 (applicants below 600 were typically rejected outright)

• Savings: At least $1,000 in the bank toward the purchase

• Location: Home must be within Richmond city limits and in a HUD-designated qualified census tract (lower-income areas)

• Budget cushion: Housing counselors verify the buyer will have at least $150/month remaining after all expenses

A 10-step gauntlet that few have completed

The application process, administered through HOME, involves a multi-step pipeline that has proven to be a significant bottleneck.

The official steps are:

1. complete a HOME workshop;

2. complete a SurveyMonkey form acknowledging program requirements;

3. obtain an HR eligibility letter from the City of Richmond’s Human Resources Department at HRBenefits@rva.gov or (804) 646-4700;

4. submit a formal application (up to 10 business days to process);

5. complete HOME’s homebuyer education course;

6. complete intake by submitting specific financial documents;

7. meet with a housing counselor to discuss financial situation, budget capacity, and mortgage affordability;

8. establish and follow a spending plan and save money through additional counseling sessions;

9. find and purchase a home with a real estate agent; and (10) close on the property. HOME of VA

Brown described the requirements as “quite strict.” The pipeline data tells the story of dramatic attrition. Of the 127 city employees who applied, only 81 met the minimum requirements. Of those, 47 completed homebuyer education, 21 submitted follow-up documents, and just 7 had funds reserved for an actual purchase. Of those seven, one purchased outside the designated census tract area (using a different city assistance program instead), and another changed plans due to last-minute issues with the property.

An additional 16 employees applied in October 2025, and 13 of those applied for classes, but the city acknowledged it “does not know how many have completed the classes or desire to move to the next step.”

Why $1.2 million is sitting unused

The fundamental problem is a paradox baked into the program’s design: it targets employees who earn little enough to qualify for assistance but are financially stable enough to sustain homeownership in a city where the median single-family home price hit $428,000 as of October 2025 — roughly double a decade ago. Councilor Robertson put it bluntly: the average city employee making a decent salary of $75,000 still can’t afford to buy in Richmond.

Several specific barriers have compounded the problem. Credit scores below 600, outstanding collections debts, and recent bankruptcies disqualified many applicants at the front door. The requirement that homes be located in HUD-designated qualified census tracts further narrows the already tight inventory of eligible properties. Some elected officials have also criticized the way Area Median Income (AMI) is calculated by HUD for the Richmond metropolitan area: wealthier, more populous surrounding counties like Henrico and Chesterfield skew the AMI upward to $113,500, putting low-income city residents at a structural disadvantage when qualifying for programs pegged to AMI thresholds.

HOME’s Fitzpatrick defended the program’s outcomes, arguing that success should be measured beyond closings. He noted that dozens of participants benefited from financial counseling and homebuyer education even if they didn’t purchase. “We measure success not just in closings, but in the number of families that are better informed, more financially prepared, and working toward stability, whether that’s this year or down the road,” he said. The counseling is designed to prevent foreclosures, “the last thing we want is to help someone achieve their dream of homeownership only to see them struggle or face foreclosure because the monthly costs aren’t sustainable.”

The political fallout and push to expand

The program’s struggles became a point of political friction when Brown presented the spending data to City Council’s committee on November 19, 2025.

There was even disagreement over basic numbers: Brown initially told the committee only two employees had completed the process, but a HOME official named Hicks disputed that figure, and a city spokesperson later confirmed three completions at that time (a fourth closed by December 2025).

Councilor Ellen Robertson (6th District) has been the most vocal critic, framing the program as a symptom of Richmond’s broader housing crisis. She argued that restricting eligibility to city employees made it nearly impossible to spend the ARPA funds and ignored the larger population of struggling Richmonders: “There are folks that are in desperate need of a down payment and closing costs for homeownership. But they aren’t city employees.”

However, ARPA rules prevent redirecting the funds to an entirely different project, constraining the city’s options.

In response, officials introduced a new ordinance in March 2026 to expand the program to include Richmond Public Schools (RPS) employees as eligible first-time homebuyers. The ordinance states that “the option to expand eligible recipients to Richmond School Board employees is permitted under the Virginia Code and ARPA Guidance” and that HOME supports the expansion, which requires a new ordinance and contract amendment. This expansion is scheduled for review at the Finance and Economic Development Committee meeting on April 16, 2026.

Brown also told the council her office is “actively reviewing the contract to determine whether adjustments need to be made to expand the program, streamline the requirements, or otherwise improve accessibility and desirability for city employees.” However, Hicks told VPM News that the city had not contacted HOME about reviewing the program or making changes as of the November 2025 reporting.

Where this fits in Richmond’s housing crisis

The program’s struggles are part of a broader pattern of Richmond’s difficulty deploying housing assistance funds. The city declared a housing crisis in March 2023 under Mayor Stoney, who pledged $20 million in ARPA funds for affordable housing development and set a goal of 2,000 new homeownership opportunities for low income Richmonders by 2030. A separate city audit found Richmond hadn’t followed its own funding rules for the Affordable Housing Trust Fund, with money meant for housing failing to reach the trust fund as intended. Another program, the Gap Grant Program, designed to help lower-income residents with housing costs; also underperformed dramatically, with only $20,400 disbursed out of $3.9 million budgeted.

Richmond’s total ARPA allocation was approximately $155 million across nearly 30 projects. The homebuyer program is the sole outlier in spending. The city operates under a legal framework established by Virginia Code § 15.2-958.2, which governs the maximum grant amounts per employee for such programs. The original 2023 announcement described the allocation as $1.4 million, though subsequent reporting consistently cites $1.3 million as the final figure.

Conclusion

Richmond’s Employee Homebuyer Assistance Program illustrates a recurring tension in targeted government programs: eligibility criteria designed to ensure responsible spending can become so restrictive they prevent the money from being spent at all. With $1.2 million still unspent and a December 31, 2026 deadline looming, the proposed expansion to RPS employees represents the city’s best remaining option to avoid returning federal dollars. Whether that expansion, and any streamlining of the multi step process can generate enough qualified buyers in the roughly nine months remaining is the central question. The program’s deeper lesson, as Robertson and housing advocates have emphasized, is that $25,000 in assistance cannot overcome the structural barriers to homeownership when median home prices have doubled in a decade and the target population earns too little to clear the financial thresholds that the program itself imposes.

And most of them are still playing by the 2021 rulebook.

National inventory is sitting at its highest level since 2019.

Some production builders are offering up to 14% of the sales price in concessions just to move units.

Virginia’s housing market is expected to shift toward more balanced conditions in 2026, with inventory levels forecast to increase five to ten percent.

The leverage has moved. But leverage only works if you know how to use it.

Here are five negotiation mistakes Central Virginia buyers are making right now, and what to do instead.

1. Leading With a Lowball Offer

A buyer-friendly market does not mean sellers are desperate. Homes in the Central Virginia MLS are still selling at 100% of list price with an average of 15 days on market. That’s fast. Sellers still have pricing power, especially on well-prepared listings in Henrico, Chesterfield, and Short Pump.

Coming in with an aggressively low offer doesn’t start a negotiation. It ends one. Sellers take it personally, and listing agents advise their clients to ignore it and wait for a serious buyer. Even if the seller counters, you’ve already set a tone that makes the rest of the deal harder than it needs to be.

The smarter approach is to come in with a competitive offer backed by recent comparable sales data in that specific neighborhood. If you want to negotiate down, negotiate on terms. Ask for closing cost credits. Ask for a home warranty. Ask for a repair allowance. These give you real savings without insulting the seller’s price.

2. Waiving Contingencies to “Win”

This is a leftover habit from 2021 and 2022, when buyers were waiving inspections, appraisals, and financing contingencies just to get their offer accepted. In today’s Central Virginia market, that’s almost never necessary, and it’s one of the fastest ways to lose money on a deal.

Redfin data shows that inspection related friction was one of the leading causes of failed transactions in 2025. Sellers who refused to accommodate reasonable buyer concerns during the inspection phase were losing qualified buyers entirely.

Here’s what that means for you as a buyer: your contingencies are not weaknesses. They’re negotiation tools. Keep your inspection contingency. Keep your appraisal contingency. Use them to protect yourself, and then negotiate from a position of information rather than desperation.

The only scenario where waiving a contingency might make sense is a true multiple offer situation on a highly desirable property. And even then, talk to your agent about which contingency carries the least risk to waive, not which one makes your offer “look stronger.”

3. Ignoring What the Seller Actually Cares About

Most buyers negotiate on one thing: price. But sellers often care just as much about three or four other factors that never show up in the offer amount.

Closing timeline. A seller who has already found their next home wants to close fast. A seller who hasn’t might need 60 days or more. Matching your timeline to theirs costs you nothing and can be the reason your offer gets picked over a higher one.

Rent-back agreements. Offering the seller the option to stay in the home as a renter for a few weeks after closing can remove the biggest source of stress in their transaction. This is especially common in Central Virginia right now, where sellers are often buying in the same market and dealing with their own timing challenges.

Lender reliability. Sellers and listing agents pay close attention to your lender. A pre-approval from a well known local lender who picks up the phone carries more weight than one from an online lender the listing agent has never heard of. Get pre approved before you start making offers. Not pre qualified. Pre approved.

These non price factors are where smart buyers separate themselves. You can win a deal at the same price as a competing buyer simply because your terms made the seller’s life easier.

4. Not Using the Inspection as a Negotiation Tool

The inspection is not just a pass/fail test. It’s the second negotiation, and it’s where most buyers either save thousands or blow the deal.

The mistake buyers make is treating every item on the inspection report like a problem the seller needs to fix. Cosmetic issues, minor wear, and items that were visible during the showing are not negotiation points. Asking the seller to fix 30 small things makes you look unreasonable, and sellers will push back hard or walk away.

The smarter approach is to focus on three categories: structural issues, safety concerns, and big-ticket systems (roof, HVAC, plumbing, electrical). These are the items that actually affect the value and livability of the home. Frame your repair requests as solutions, not demands. Instead of “fix the HVAC,” try “we’d like a $3,000 credit toward HVAC replacement so we can handle it with our own contractor after closing.”

This does two things. It gives the seller a clean, simple path to keeping the deal together. And it gives you the flexibility to handle the repair on your own terms.

5. Negotiating Without Local Market Data

Central Virginia’s real estate markets showed distinct personalities in 2025, with median prices for resale homes ranging from $290,750 in Waynesboro to $665,000 in Albemarle County.

That’s not one market. That’s a patchwork of micro-markets, each with different inventory levels, different buyer competition, and different seller expectations. Days on market increased over 13% in Henrico County from 2024 but stayed flat in Chesterfield.  Richmond City saw a 3.7% increase in average sales price year over year while Henrico was essentially flat at 0.2%.

A buyer negotiating in Waynesboro needs a completely different approach than one negotiating in Albemarle. And a buyer in the Fan District of Richmond is operating in a different world than one shopping in Hanover County.

The buyers who negotiate well are the ones who understand the specific conditions of the neighborhood they’re buying in. How many days are homes sitting? What percentage of list price are they actually selling for? How many competing listings are active in that price range right now?

If you don’t know these numbers for your target area, you’re guessing. And guessing costs money.

The Bottom Line

The window of buyer leverage in Central Virginia is real, but it won’t last forever. Economists project that a median-priced home around $400,000 could appreciate by $61,000 over five years.  The buyers who negotiate well right now will look back on this as the moment they locked in real value. The ones who waste it on lowball offers, waived contingencies, and blind guessing will wonder what happened.

If you’re buying in Central Virginia and want to understand what the data says about your specific market, reach out. We’re happy to walk through the numbers with you and help you build a strategy that actually works.

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Most homebuyers pick a location based on school ratings and commute times.

Nothing wrong with that. But there are three data points hiding in plain sight that most agents and buyers completely overlook.

(Read until end for resources & how to implement)

1. A U-Haul truck.

2. A Starbucks permit.

3. A Trader Joe’s “coming soon” page.

These three signals, when you stack them together, can tell you more about where property values are headed than most traditional market analyses. And the best part is that anyone can look them up for free.

The U-Haul Growth Index: Where People Are Actually Moving

Every year, U-Haul publishes something called the Growth Index. It’s compiled from over two and a half million one way rental transactions across the U.S. and Canada. The logic is simple: when someone rents a truck in one city and drops it off in another, that’s a data point. Millions of those data points start painting a very clear picture of where people are going and where they’re leaving.

For 2025, Dallas Fort Worth took the number one spot as the top growth metro for the second year in a row. The top three metros were all in Texas: Dallas, Houston, and Austin. The top ten also included Charlotte, Phoenix, Nashville, Charleston, Raleigh, Atlanta, and the Brownsville McAllen corridor along the southern border of Texas.

At the state level, Texas reclaimed the number one growth state position for the seventh time in ten years, followed by Florida, North Carolina, Tennessee, and South Carolina. California ranked last for the sixth consecutive year, with the largest net loss of outbound movers.

( https://misc-uhaul-com.azurewebsites.net/Articles/About/U-Haul-Growth-Index-Texas-Back-ON-Top-As-No-1-Growth-State-Of-2025-36556/ )

What’s interesting for agents paying attention is the city level data. Florida dominated the growth cities list with eight of the top ten markets and twelve of the top twenty five. Ocala, Florida held the number one growth city spot for the third time in four years. Smaller cities are making their debut on the index too, including St. Augustine (Florida), Seguin (Texas), Leesburg (Florida), Garner (North Carolina), and Lacey (Washington).

Here’s what’s worth watching: San Francisco, Denver, and Philadelphia each had more U-Haul equipment leaving than arriving in 2024, but all three posted strong net gains in 2025. That kind of reversal is exactly the type of signal that should catch an agent’s eye. When a market goes from net outflow to net inflow, that’s often where the early opportunity sits.

How to look this up yourself:

Go to uhaul.com/about/migration

U-Haul publishes their full rankings for states, metros, and individual cities every January. You can compare year over year trends to spot which markets are gaining momentum and which ones are losing it.

The Starbucks Effect:

A Six-Dollar Latte as a Leading Indicator

Starbucks doesn’t open locations randomly. They employ a team of analytics experts around the world who study traffic patterns, income levels, demographics, and long-term growth potential before committing to a site. When Starbucks decides to plant a flag in a neighborhood, it’s a data-backed bet that the area has upside.

Zillow conducted research and found that between 1997 and 2014, properties within a quarter mile of a Starbucks increased in value by 96 percent, compared to 65 percent for all U.S. residential properties. Harvard Business School found another trend: when a new Starbucks shows up, homes in that zip code increase in value by 0.05 percent within just one year.

The reason isn’t that Starbucks causes home values to rise. As Zillow’s senior economic research analyst Hannah Jones explained, the company is strategic about choosing to open in neighborhoods where economic growth and rising demand are already in motion. The company essentially follows the heat, identifying areas with momentum. For buyers and agents, a new Starbucks is a quick, readable signal that a neighborhood has potential.

The biggest effect was in Boston, where nearby home values went up 171 percent in the same time period, 45 percentage points more than all homes in the city.

Now, here’s the slightly contrarian angle. Starbucks closed hundreds of locations in 2025 as part of a company wide restructuring. When a Starbucks closes, one financial expert described it as “the ultimate canary in the coal mine” because the company’s decision to leave is a data-driven declaration that a neighborhood’s economic fundamentals are in decline. So the indicator works both directions. An opening is a green light. A closure is a red flag worth investigating.

( https://trueparity.com/blog/starbucks-effect-real-estate-a-game-changer-for-buyers )

Starbucks is now back in expansion mode, planning to open 150 to 175 U.S. stores in fiscal year 2026, with a longer-term target of 400 new U.S. locations by 2028.

( https://chainstoreage.com/starbucks-open-150-175-us-stores-2026-sees-big-long-term-opportunity )

How to track new Starbucks locations:

Use the Starbucks Store Locator to see existing locations in your target area. For upcoming openings, check local commercial permit filings through your county’s planning department website or monitor commercial real estate news in your market.

Sites like starbuckseverywhere.net also track opening dates nationally.

The Trader Joe’s Effect: The Grocery Store That Doubles Your Home Value

If you think the Starbucks indicator is interesting, the Trader Joe’s data is even more aggressive.

Zillow found that homes near a Trader Joe’s were worth a median of $406,600 at the end of 2014 and had appreciated 148 percent between 1997 and 2014. For context, the median U.S. home was worth less than $180,000 during the same period. By the end of 2014, homes within a mile of either a Trader Joe’s or Whole Foods were worth more than twice as much as the median home in the rest of the country.

What’s interesting to me is the “before and after” data. Before a Trader Joe’s opened, homes near the future store appreciated at the same pace or slower than the typical home in that city. Once the store opened, that relationship changed completely. Two years after a Trader Joe’s opened, the median home within a mile had appreciated ten percentage points more than homes in the city as a whole.

( https://zillow.mediaroom.com/2016-01-25-Homes-Near-Trader-Joes-Whole-Foods-Stores-Appreciate-Faster )

An analysis by ATTOM Data Solutions confirmed that of three major grocery chains studied (Trader Joe’s, Whole Foods, and ALDI), Trader Joe’s had the highest average home value in its vicinity at $608,305 and the highest average return on investment compared to sale price at 51 percent.

(https://www.apartmenttherapy.com/trader-joes-whole-foods-aldi-home-value-attom-data-solutions-36635351 )

Trader Joe’s uses a specific criteria when scouting locations, including population density, traffic patterns, education levels, and parking availability. They look for areas where people have access to good education and multiple amenities. That selection process alone is a massive research shortcut for anyone trying to figure out where property values have room to grow.

In 2025, Trader Joe’s opened 41 new stores across the country , and the company has already announced several locations slated for 2026 openings, including spots in Tucson, Johns Creek (Georgia), New Orleans, McKinney (Texas), Woodinville (Washington), and West Palm Beach (Florida).

How to track new Trader Joe’s locations:

Go directly to traderjoes.com/home/store-search and look for the “Opening Soon” section. Trader Joe’s lists confirmed future locations with addresses before announcing specific opening dates. You can also follow their podcast, “Inside Trader Joe’s,” where marketing executives occasionally discuss upcoming expansion plans and the criteria they use for site selection.

How to Stack All Three Signals Together

Any one of these indicators on its own is useful. But the real value comes from layering them.

Here’s a practical way to do it:

Step one:

Check the latest U-Haul Growth Index to identify which metros and cities are gaining the most inbound movers. This tells you where population growth is heading.

Step two:

Cross reference those cities with new Starbucks openings or permits. If a market is gaining movers AND Starbucks is opening new locations there, that’s two independent data sources agreeing on the same conclusion.

Step three:

Check if Trader Joe’s has announced any new locations in those same areas. A Trader Joe’s “coming soon” listing in a city that’s already climbing the U-Haul index and attracting Starbucks locations is about as strong a convergence signal as you’re going to find without hiring a research analyst.

For example, look at Texas. It’s the number one U-Haul growth state for the seventh time in ten years. Starbucks is expanding aggressively in the state. And Trader Joe’s opened multiple Texas locations in 2025 with more slated for 2026, including a new store in McKinney. That’s three separate indicators all pointing in the same direction.

The same pattern shows up in parts of Florida, the Carolinas, and the greater Nashville area.

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What This Means for Agents and Their Buyers

For agents advising buyers on location, these are free tools that give you a sharper perspective on where a market is headed. They don’t replace local expertise, but they add a layer of macro level awareness that most agents aren’t bringing to the conversation.

For buyers, understanding these signals can help you get ahead of appreciation trends instead of buying into a neighborhood after the growth has already been priced in. The goal is to buy where the U-Haul trucks are arriving, where Starbucks is building, and where Trader Joe’s is scouting, not where those things happened three years ago.

A quick resource list to bookmark:

• U-Haul Growth Index:

uhaul.com/about/migration

∙ Starbucks Store Locator:

starbucks.com/store-locator

∙ Starbucks Opening Tracker: starbuckseverywhere.net

• Trader Joe’s New Stores: traderjoes.com/home/store-search

If this gave you a new way to think about location strategy, share it with someone on your team. And if you’re not subscribed yet, hit the button below so you don’t miss the next one.​​​​

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Before 2005, a lot of sellers wanted nothing to do with FHA buyers. The reason was simple. FHA required a laundry list of repairs before the loan could close, and the seller was usually the one stuck paying for all of it.

Since then, FHA repair guidelines have loosened up. But they haven’t disappeared.

Who Actually Pays for FHA Repairs?

Here’s what most people get wrong. It’s not always the seller’s responsibility. It depends entirely on how the buyer’s purchase offer is written.

A buyer’s agent can build in a dollar cap on seller-paid repairs. If a seller is hesitant to accept an FHA offer, that cap gives them a ceiling on what they’re agreeing to. It’s a negotiation tool that doesn’t get used nearly enough.

A Real Example of How Costs Can Spiral

One seller was required by FHA to replace the door between her garage and home because the existing door wasn’t fireproof. She also had to install smoke detectors. Sounds minor, right?

The problem was the doorway between the house and the attached garage wasn’t a standard width. That meant the entire door frame had to be altered to fit a standard door. What the appraiser estimated would cost around $150 ended up costing almost $700.

Converted Garages Are a Red Flag

FHA repair guidelines aren’t set in stone. An underwriter can call for additional repairs beyond what the appraiser flags. Converted garages are one of the biggest triggers for this.

Whether the interior of a converted garage needs to be torn out is up to the appraiser and underwriter. In some cases, the appraiser will simply appraise the home’s value without the garage conversion and deduct the estimated cost of demolition from the valuation.

The takeaway for agents advising their clients: know the FHA repair landscape before you write the offer, not after.

Repairs that Must be Completed Prior to Closing an FHA Loan

• Peeling paint in homes built before 1978.

•Unpainted downspouts and broken rain gutters.

• Rotting out-building i n need of demolition.

•Exterior doors that do not properly close and open.

•Exposed wiring and uncovered junction boxes.

• Major plumbing issues and leaks.

•Inoperable HVAC systems.

• Leaky or defective roofs, roofs with a life expectancy of less than 3 years, composition over shake.

•Active and visible pest infestation.

• Rotting window sills, eaves, and support columns on a porch.

• Missing appliances that usually are sold with a home such as a stove.

• Bedrooms without minimize-sized windows or bedroom windows with bars that do not release.

Foundation o r structural defects.

• Wet basements. (Includes Mold Like substances)

•Evidence of standing water i n the crawl space.

• Inoperable kitchen appliances.

•Empty swimming pools, pools without a working pump and pools with mosquito fish.

•Ripped screens.

• No pressure relief valve o n water heater.

• Leaning / broken fence.

Wells and Septic Systems: Wells must be 50” from the septic tank and 100’ feet from the leech field;;also 1 0 ‘ from the property line. NO Exceptions! If public connections are available and it is feasible, must be connected.

Note: If the property is served b y dug wells, springs, lakes, cisterns or rivers the property is ineligible for FHA financing.

If this saved you from a surprise repair bill or a fumbled deal, share it with an agent on your team who needs to see it. And if you’re not subscribed yet, fix that so you don’t miss the next one.

Select homes are currently offering qualified buyers a 4.99% FIXED interest rate, available for a limited time on homes that can close quickly.

That’s a number most buyers haven’t seen in a while.

I put together a video tour of one of the communities so you can get a feel for what’s on the table. Take a look below.

[YouTube Video Link]

This won’t stay available forever. If the timing works, let’s talk.

Reach out for full details and to see if you qualify.

Daniel Yoon

804.896.2694

daniel.yoon@exprealty.com

Using cryptocurrency to purchase a primary residence triggers a taxable event under current IRS rules—there’s no legal way to completely avoid this. However, crypto holders have several legitimate strategies to defer, reduce, or work around capital gains taxes when converting to real estate. The most powerful approach is borrowing against crypto holdings rather than selling them, which avoids realization entirely while maintaining market exposure. For those who must sell, strategic timing, cost basis optimization, and proper structuring can meaningfully reduce tax liability.

The IRS classifies cryptocurrency as property under Notice 2014-21, meaning any disposition—including purchasing real estate—constitutes a taxable sale. The Tax Cuts and Jobs Act of 2017 permanently excluded cryptocurrency from 1031 like-kind exchanges, closing what was once a potential deferral path. Against this backdrop, crypto holders seeking to buy homes must choose between accepting some tax liability or using debt-based strategies that delay realization indefinitely.

Direct crypto purchases always trigger capital gains

When you use Bitcoin or Ethereum to buy a house, the IRS treats this as selling your crypto for its fair market value on the transaction date. You must recognize capital gains (or losses) equal to the difference between your cost basis and the property’s fair market value. This applies whether you transfer crypto directly to a seller or use an intermediary service that converts to dollars.

Long-term vs. short-term rates matter significantly. Crypto held over one year qualifies for preferential long-term capital gains rates of 0%, 15%, or 20% (plus 3.8% Net Investment Income Tax for high earners), compared to ordinary income rates up to 37% for short-term holdings. A crypto holder with $1 million in appreciated Bitcoin (basis of $100,000) would face approximately $180,000 in federal taxes at the 20% long-term rate, versus potentially $333,000 at the highest ordinary income rate.

The transaction structure through services like Propy or RealOpen doesn’t change this tax treatment. These platforms facilitate logistics—holding crypto in escrow, converting at optimal moments, issuing proof-of-funds letters—but the capital gains liability remains with the buyer regardless of whether the seller receives crypto or dollars.

Section 1031 exchanges cannot be used. Pre-2018, some practitioners argued crypto-to-crypto exchanges might qualify for 1031 deferral. The Tax Cuts and Jobs Act eliminated this by restricting 1031 treatment exclusively to “real property.” IRS Chief Counsel Advice 202124008 confirmed that even different cryptocurrencies (Bitcoin, Ethereum, Litecoin) were never “like-kind” to each other, closing the door on historical claims as well.

Borrowing against crypto avoids realization entirely

The most tax-efficient strategy for crypto-wealthy homebuyers is borrowing against holdings rather than selling them. Under established tax principles, taking a loan secured by property does not constitute a taxable disposition—the borrower retains ownership throughout. This approach provides liquidity while preserving both the asset and its future appreciation potential.

Active crypto lending platforms for US customers include:

Milo offers dedicated crypto mortgages with up to 100% financing—no traditional down payment required. Borrowers pledge cryptocurrency equal to the property value as collateral while the property itself provides secondary security. Interest rates run 8-10% on 30-year fixed terms, higher than conventional mortgages but without the tax hit of liquidating crypto. Milo reports never having liquidated a client’s collateral, instead working with borrowers through volatility.

The critical risk is margin calls. If collateral value drops significantly (typically triggering at 70-80% LTV), borrowers must add collateral or face partial liquidation. Liquidation IS a taxable event, treated as selling the crypto at that moment. Prudent borrowers start with conservative LTV ratios (40-50%) and maintain reserve collateral to weather volatility.

Tax-advantaged retirement accounts cannot fund your home

Self-directed IRAs and Solo 401(k)s legally hold cryptocurrency and can even purchase real estate—but you cannot live in property owned by your retirement account. Using SDIRA or Solo 401(k) assets for personal benefit constitutes a prohibited transaction under IRC Section 4975, triggering immediate disqualification of the entire account, full taxation, and a 10% early withdrawal penalty if under age 59½.

These accounts work for crypto investors building real estate portfolios of rental or investment properties. The Solo 401(k) offers particular advantages including higher contribution limits ($70,000 in 2025 plus catch-ups) and exemption from Unrelated Debt-Financed Income (UDFI) tax on leveraged real estate that applies to SDIRAs. But for primary residence purchases, they provide no pathway.

Opportunity Zone funds accept crypto capital gains but impose similar restrictions. A crypto holder can sell appreciated cryptocurrency, invest the gain amount in a Qualified Opportunity Fund within 180 days, and defer the original tax until December 31, 2026 (with partial exclusion for long-held investments). The 10-year exclusion benefit eliminates tax on appreciation within the QOF itself. However, QOF properties must be used for investment or business purposes—personal residences don’t qualify.

The most indirect path involves Charitable Remainder Trusts. Donating appreciated crypto to a CRT allows the trust to sell it without immediate capital gains tax. The CRT then invests proceeds and pays you an income stream for life or a term of years. These distributions can fund mortgage payments or down payments on personal real estate purchased outside the trust. The tradeoff: you surrender the crypto permanently (remainder goes to charity), distributions are taxable as received, and setup costs run $3,000-$10,000 with ongoing administration.

Real estate platforms streamline logistics without changing taxes

Several services specialize in crypto real estate transactions, though none provide tax advantages—they solve operational challenges rather than tax ones.

Propy operates as the first US-licensed title company in the crypto space, with coverage in Florida, Arizona, and Colorado. Their Crypto Escrow Service (powered by Coinbase Prime) holds buyer cryptocurrency during the standard 30-day closing period, converting to fiat only at final stages. If a deal falls through, the buyer retains their crypto without having triggered a taxable conversion. Propy has facilitated over $10 billion worth of US homes through its ecosystem and records deeds on blockchain with QR codes for verification.

RealOpen solves the more common scenario where sellers want dollars. The platform converts buyer crypto to fiat and wires funds to escrow, enabling crypto holders to purchase any property—not just those with crypto-friendly sellers. RealOpen issues “Proof of Funds” letters within 15 minutes, allowing buyers to present cash-equivalent offers that strengthen negotiating position.

Title companies accepting crypto remain relatively rare. Guaranty Escrow (winner of “Best of BitPay 2023”) uses BitGo custody infrastructure and operates in all 50 states. They accept crypto into cold storage, confirm value for proof of funds, then hold USD in regulated trust accounts pending closing. Most traditional title companies require conversion to dollars before they’ll participate.

Section 121 works normally regardless of purchase method

The $250,000/$500,000 primary residence capital gains exclusion (Section 121) applies based solely on ownership and use tests—how you funded the purchase is irrelevant. A home bought with crypto proceeds establishes its cost basis at the purchase price fair market value. If you live there as your primary residence for at least 2 of the 5 years before selling, gains up to the exclusion thresholds avoid tax entirely.

The crypto sale and eventual home sale are separate tax events. Paying capital gains when liquidating crypto to buy a home doesn’t prevent later claiming Section 121 exclusion on appreciation of the home itself. First-time homebuyers receive no special treatment for crypto-funded purchases but can use all standard programs (FHA loans, down payment assistance) once funds are converted.

Conventional mortgage qualification requires a paper trail. Fannie Mae and Freddie Mac guidelines mandate that crypto assets be liquidated and held in a traditional bank account for at least two months before closing. Lenders require documentation of when crypto was purchased, balances throughout ownership, value at liquidation, and deposit records. Some will “back out” crypto-derived funds entirely from qualification calculations.

Virginia imposes 5.75% on all capital gains

Virginia taxes capital gains as ordinary income with no preferential long-term rate. Most taxpayers with significant crypto gains fall into the 5.75% top bracket, which kicks in above $17,000 for joint filers. This adds meaningfully to federal liability—a $500,000 long-term gain faces approximately $28,750 in Virginia tax on top of federal obligations.

Virginia follows federal IRS classification of cryptocurrency as property and requires reporting crypto transactions on state returns. The state conforms to Section 121 exclusion rules, so home sale gains within the threshold remain tax-free at both levels. Northern Virginia property taxes vary significantly by jurisdiction, with Falls Church area averaging over $10,000 annually.

Puerto Rico offers genuine (but demanding) tax advantages

Puerto Rico Act 60 provides 0% tax on capital gains for bona fide residents—including crypto gains realized after establishing residency. However, stringent requirements apply:

• Minimum 183 days physical presence per tax year in Puerto Rico

• Purchase real property within 2 years of establishing residency

• Cannot have been a PR resident in prior 10 years

• Must relocate tax home, family ties, banking, and social connections

• Must demonstrate “closer connection” to Puerto Rico than anywhere else

Critically, pre-move gains remain subject to US tax. The benefit applies only to gains on assets acquired or appreciation accruing after establishing legitimate Puerto Rico residency. The IRS has intensified scrutiny of Act 60 claims, challenging aggressive interpretations of income sourcing. Proposed legislation (H.R. 2982, introduced April 2025) would close the crypto-specific benefits entirely, though its passage remains uncertain.

Compliance requirements are tightening significantly

New reporting obligations take effect over the next two years:

Large crypto transactions face AML/KYC scrutiny regardless of the real estate context. Title companies perform OFAC sanctions screening on wallet addresses, require documentation of fund sources, and use blockchain analytics tools to verify legitimacy. The American Land Title Association considers crypto inadequate for “good funds” standards in most states, necessitating conversion before disbursement.

Practical strategies ranked by tax efficiency

For crypto holders purchasing a primary residence, these approaches reduce or defer tax liability in descending order of effectiveness:

1. Borrow against crypto using Ledn, Coinbase/Morpho, Nexo, or Milo—creates no taxable event while accessing full purchasing power. Best for those confident in long-term crypto appreciation who can manage margin call risk.

2. Time sales for long-term treatment—ensure crypto has been held over 12 months before any liquidation. Federal rates drop from up to 37% to maximum 20% (plus 3.8% NIIT).

3. Harvest losses strategically—offset gains from crypto sales with losses from other positions. Can reduce net taxable gain dollar-for-dollar.

4. Spread sales across tax years—if purchasing timeline allows, selling crypto across December/January straddles two tax years, potentially keeping more income in lower brackets.

5. Use CRT for large appreciated positions—appropriate for holders with multi-million dollar gains willing to eventually benefit charity. Converts immediate tax hit into long-term income stream.

6. Relocate to Puerto Rico, genuine option for location-independent crypto holders willing to make complete lifestyle change. Only eliminates tax on post-move appreciation.

Conclusion

The fundamental reality is that converting cryptocurrency to real estate triggers capital gains tax under current US law; no legitimate structure changes this for direct sales. The crypto-backed loan strategy represents the most powerful tool available, allowing indefinite deferral while maintaining upside exposure. For those who must liquidate, disciplined timing, basis tracking, and loss harvesting can reduce liability by thousands of dollars.

New reporting requirements starting in 2025-2026 will increase IRS visibility into crypto transactions substantially. Cost basis documentation, wallet-by-wallet tracking, and proper Form 8949 reporting are now essential compliance requirements. Virginia residents face additional state tax burden with no preferential capital gains rate, making tax planning particularly valuable.

The ecosystem of crypto-friendly real estate services (Propy, RealOpen, Milo) has matured significantly, solving operational challenges that once made crypto to property transactions difficult. What they cannot solve is the underlying tax treatment that Congress established in 2017 when excluding cryptocurrency from 1031 like-kind exchange eligibility.

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Daniel

First-time buyer programs deliver significant advantages

Virginia Housing (VHDA) offers one of the nation’s strongest suites of first-time homebuyer programs. The Down Payment Assistance Grant provides 2-2.5% of the purchase price as a true grant requiring no repayment, with income limits of $96,000 for households of two or fewer in the Richmond MSA. For those needing more assistance, the Virginia Housing Plus Second Mortgage covers 3-5% of the purchase price through a 30-year second loan, effectively enabling 0% down purchases for qualified buyers.

The FirstHome Dream Program, launched in 2024, offers interest rates 2 percentage points below posted Virginia Housing rates for first-generation homebuyers—those whose parents also never owned homes. This program initially piloted in Richmond before expanding statewide.

Richmond-specific programs add further opportunities:

∙RRHA ComeHome Initiative (launched March 2024): Provides down payment assistance with below-market rates for public housing residents and voucher holders, using consistent rent payment history as credit qualification

∙Henrico County Affordable Housing Trust Fund: A $60 million fund from data center tax revenue offering below-market pricing for buyers earning 60-120% of Area Median Income

∙Henrico Employee Home Purchase Assistance: Up to $25,000 for county employees with 12+ months tenure

∙Virginia DHCD HOMEownership Program: Deferred forgivable loans up to $40,000 (forgiven after 5-15 years)

FHA loan limits for Richmond metro currently stand at $673,900 for single-family homes (2025), with down payments of just 3.5% for buyers with 580+ credit scores.

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Seller financing works differently under Virginia’s Dodd-Frank exemptions

Seller financing in Virginia operates under federal Dodd-Frank rules, but two key exemptions make it accessible for most transactions. Understanding these exemptions is critical for structuring compliant deals.

The one-property exemption applies to natural persons (not LLCs) financing a single property within 12 months. Under this exemption, balloon payments are permitted (minimum 5-year term recommended), no ability-to-repay determination is required, and the seller need not be licensed. The loan must have no negative amortization and either a fixed rate or an adjustable rate that resets after 5+ years with 2% annual and 6% lifetime caps.

The three-property exemption allows any seller—including LLCs and corporations—to finance up to three properties annually. However, this exemption requires fully amortizing payments (no balloons permitted) and mandates that sellers make a good-faith determination of the buyer’s reasonable ability to repay, documented through income and asset review.

Typical seller financing terms in Virginia include:

∙Down payments of 5-20% (negotiable based on seller risk tolerance)

∙Interest rates 1-3% above prevailing market rates

∙Loan terms of 5-30 years with balloon payments at 5-7 years (one-property exemption only)

∙Virginia’s 12% usury cap does not apply to loans of $5,000+ for business or investment purposes

Virginia requires deeds of trust (not mortgages) be recorded in the local Circuit Court Clerk’s office. Licensed settlement agents—attorneys, title companies, or licensed brokers—must handle closings. The deed transfers to the buyer at closing, while the seller holds the deed of trust as security.

Assumable mortgages present rare sub-4% rate opportunities

With current mortgage rates hovering around 6.5-7%, assumable mortgages offer remarkable savings. Approximately 74% of VA homeowners hold rates below 5%, creating potential monthly savings of $1,000+ compared to new financing at current rates.

Three loan types remain assumable: FHA, VA, and USDA loans. VA loans can even be assumed by non-veterans, though this doesn’t release the original borrower’s entitlement. The assumption process typically requires 60-90 days, standard qualification (620+ credit, income verification), and fees capped at $900 for FHA and 0.5% of loan balance for VA.

Finding assumable mortgages requires targeted searching. Platforms like Assumable.io, Roam (active in Virginia with 1% purchase price fee), and AssumeList.com specialize in these listings. Data shows that 1 in 6 homes in Prince William County and 1 in 15 in Fairfax County carry sub-5% assumable loans. Search MLS listings using keywords “assumable,” “VA loan,” or “FHA loan.”

The primary challenge lies in covering the seller’s equity gap—the difference between the assumable loan balance and purchase price. Buyers typically use cash, a second mortgage at current rates, or seller financing. A blended approach (e.g., $320K at 3.25% + $130K at 8%) still produces weighted-average rates significantly below market.

Lease options require careful Virginia law compliance

Virginia’s lease-option arrangements combine a standard rental agreement (governed by the Virginia Residential Landlord and Tenant Act) with a separate option-to-purchase contract. The key legal requirement: keep these documents clearly separate to avoid triggering Dodd-Frank’s loan originator requirements.

Typical structures include:

∙Option fees of 1-5% of purchase price (non-refundable, credited toward purchase if exercised)

∙Rent credits of $200-500/month toward down payment (keep modest to avoid financing treatment)

∙Market-rate rent (not inflated to manufacture credits)

Virginia provides strong tenant protections. Landlords must provide the Statement of Tenant Rights and Responsibilities within 10 days of move-in, limit security deposits to two months’ rent, and return deposits within 45 days of move-out. The Virginia Residential Executory Real Estate Contracts Act (§ 55.1-3000) adds protections for purchasers in land contract arrangements, including the right to exercise options early without penalty.

Critical warning: If rental payments create ownership equity or rent credits become substantial, the structure may be deemed financing subject to Dodd-Frank’s ability-to-repay rules and licensing requirements. Consult a Virginia real estate attorney before structuring any lease-option.

Subject-to financing carries due on sale risks but remains viable

Subject-to transactions, taking title while leaving the seller’s mortgage in place are legal in Virginia but carry inherent risks. The buyer makes payments on the seller’s existing loan without formal assumption or lender approval.

The primary risk is the due on sale clause, found in virtually all conventional mortgages and federally enforceable under the Garn-St. Germain Act. However, practical enforcement remains rare. Lenders typically don’t monitor land records for title transfers, foreclosure is expensive, and lenders prefer performing loans. The risk increases if interest rates rise dramatically above the existing loan rate, creating economic incentive for lenders to call notes.

Garn-St. Germain explicitly protects certain transfers from due-on-sale enforcement:

∙Transfers to surviving spouses or children upon borrower’s death

∙Transfers resulting from divorce settlements

∙Transfers to inter vivos trusts where the borrower remains beneficiary

However, transfers to LLCs are NOT protected, contrary to common investor belief. The implementing regulations (12 CFR § 191.5) require the borrower to remain an “occupant,” which business entities cannot satisfy.

To structure subject to deals safely: conduct thorough title searches, use a Virginia real estate attorney for documentation, maintain insurance naming buyer as primary insured with seller and lender as additional parties, and plan for eventual refinance or sale. Most title companies will not insure subject-to transactions.

DSCR loans enable portfolio expansion without income verification

Debt Service Coverage Ratio (DSCR) loans qualify borrowers based on property rental income rather than personal income, making them ideal for scaling portfolios. The formula is straightforward: DSCR = Monthly Rental Income ÷ PITIA (principal, interest, taxes, insurance, HOA).

Current market conditions (January 2026):

∙Rates: 6.12-8.00%, with best cases around 6.125%

∙Minimum DSCR: 1.0-1.25 for most lenders; some accept 0.75 (property covers only 75% of payment)

∙Down payment: 20-25% typical

∙Credit score minimum: 620-700 depending on lender

∙LTV: 75-80% for purchases, slightly lower for cash-out refinances

No W-2s, tax returns, or income verification required— lenders review lease agreements or appraiser rent schedules. Properties must be investment-only (no owner-occupied), turnkey condition, and properly documented if held in an LLC.

Top DSCR lenders serving Richmond:

∙Griffin Funding: #1 direct to consumer DSCR lender, closing in as little as 6 days

∙LendingOne: Rates starting mid 6% to 7%

∙Easy Street Capital: “EasyRent” program specializing in BRRRR refinancing

∙LYNK Capital: From 7.00%, accepts 0.8+ DSCR

∙HouseMax Funding: From 5.5%, 15-day closings

Virginia saw $222+ million in DSCR loan volume across 576 borrowers in 2024, demonstrating strong lender activity in the market.

The BRRRR method finds fertile ground in Richmond’s appreciating market

Richmond’s real estate fundamentals align exceptionally well with the BRRRR strategy. The metro has experienced 52-62% appreciation over five years (Goochland highest at 62%), strong rental demand, and multiple hard money lenders providing acquisition and rehab capital.

The 70% Rule guides acquisition pricing: Maximum Purchase Price = (ARV × 70%) - Repair Costs. For a property with $350,000 ARV and $50,000 in repairs, maximum purchase would be $195,000.

Richmond-based hard money lenders:

∙Richmond Mortgage Inc.: $200M+ funded since 2000, no credit check required, contact Mike Krumbein (804-414-8690)

∙LendingDeck: Fix-and-flip from 9.99%, 30-year rentals from 7.00%

∙BridgeWell Capital: Richmond specialist (804-469-8000)

∙ Constitution Lending: 7-14 day closings

∙ Crebrid: Closes in 3-5 business days

Best neighborhoods for BRRRR: Church Hill, Manchester, and Northside/Brookland Park offer value-add opportunities with strong appreciation trajectories. Henrico County (ZIP 23229) was named among the “South’s Hottest ZIPs 2025.”

Advanced strategies require deeper legal understanding

Wraparound mortgages

Wraparounds are legal in Virginia and function as seller financing where the seller keeps their existing mortgage while creating a new, larger note “wrapping” the existing debt. The buyer pays the seller, who continues paying the underlying mortgage and profits from the interest rate spread.

Example: Seller owes $100,000 at 4%. Buyer purchases for $200,000 with $20,000 down. Wraparound note of $180,000 at 6% allows seller to profit from the 2% spread on $100,000 plus 6% on the additional $80,000.

Due-on-sale clause risks apply identical to subject-to transactions. Buyer protections should include clauses allowing direct payment to the original lender and escrow arrangements.

Land contracts (contracts for deed)

Virginia’s Residential Executory Real Estate Contracts Act (§ 55.1-3000) governs these arrangements with significant consumer protections. Unlike seller financing with immediate deed transfer, land contracts retain title with the seller until final payment.

Key Virginia requirements:

∙Purchasers have tenant protections under VRLTA

∙Early exercise rights without penalty

∙Sellers cannot simply forfeit payments upon default—court proceedings required

∙Required disclosures include legal description, contract terms, lien status, and exact sales price

Self-directed IRA investments

SDIRAs can purchase real estate with title held by the IRA (e.g., “Equity Trust Company Custodian FBO John Smith IRA”). All income and expenses flow through the IRA, providing tax-deferred (traditional) or tax-free (Roth) growth.

Prohibited transaction rules are strict:

∙Cannot transact with “disqualified persons” (you, spouse, parents, children, grandchildren, or their spouses)

∙Cannot perform work on IRA-owned property (no sweat equity)

∙Cannot personally guarantee IRA loans (must use non-recourse debt)

∙Cannot use IRA property personally

Violation consequences are severe: entire IRA deemed distributed as of January 1 of violation year, fully taxed, plus 10% early withdrawal penalty if under 59½.

1031 exchanges

Like-kind exchanges defer capital gains taxes when exchanging investment properties. Virginia taxes capital gains as ordinary income (up to 5.75%), so deferral benefits both federal and state taxes.

Critical timelines (strict, no extensions):

∙45 days: Identify replacement properties in writing

∙180 days: Close on replacement property

Both clocks start when the relinquished property closes. A Qualified Intermediary is mandatory—cannot be your attorney, agent, or accountant. The Three Property Rule allows identifying up to 3 replacement properties of any value; the 200% Rule allows unlimited properties if total value doesn’t exceed 200% of the relinquished property.

Richmond market conditions favor strategic investors

The Richmond metro currently operates as a seller’s market, with homes going pending in just 13 days (city) to 30 days (Chesterfield) and 36-42% of sales closing above asking price. Median prices range from $358,000-$415,000 depending on jurisdiction.

Rental market fundamentals support investment strategies: average rents of $1,574-$1,600/month (13-25% below national average), low vacancy, and a 57% renter-occupied housing stock. Gross rental yields run approximately 5-7%.

Top neighborhoods by investment strategy:

∙Appreciation plays: Church Hill, Scott’s Addition, Manchester (all experiencing rapid revitalization)

∙Cash flow: Petersburg, Hopewell, Sandston, East End (lower entry costs, competitive rent-to-price ratios)

∙House hacking: Church Hill, Oregon Hill, Jackson Ward (multi-family availability near urban amenities)

∙Fix-and-flip: Church Hill, Manchester, Northside (value-add opportunities in appreciating areas)

Local resources and investor infrastructure

Real Estate Investment Associations

∙Greater Richmond REIA: Meets 3rd Thursday, 6:30 PM in Henrico (greaterrichmondreia.com)

∙Richmond Real Estate Club: Meets last Monday, 10:00 AM at Ukrop’s Eatery on Midlothian (800-692-2743)

∙BiggerPockets Virginia Forum: Active discussions at biggerpockets.com/forums/588

Property management companies

For out-of-state investors or scaling landlords, professional management is essential:

∙Keyrenter Richmond: 30 day tenant guarantee, month-to-month contracts

∙KRS Holdings: Since 1990, known for investor education

∙Real Property Management Richmond Metro: Part of national network with $16B+ managed assets

∙Evernest: Internal maintenance team, cancel-anytime policies

Virginia’s legal framework requires proper structuring

Virginia’s deed-of-trust system enables efficient non-judicial foreclosure but requires proper documentation. All creative financing transactions should involve a Virginia-licensed real estate attorney.

Critical legal considerations:

∙Usury: 12% general cap, but loans of $5,000+ for business/investment purposes are exempt (§ 6.2-317)

∙Settlement agents: Must be licensed attorneys, title companies, or brokers registered with Virginia State Bar or Bureau of Insurance

∙Foreclosure: Non-judicial process requiring 60 days notice (owner occupied) or 14 days (other), plus publication

∙Entity formation: Virginia LLCs cost $100 to form, $50 annual fee; Series LLCs available since July 2020 for multiple property investors

∙Recording: Deeds of trust recorded at Circuit Court Clerk’s office; state recordation tax applies

Dodd-Frank compliance checklist for seller financing:

1.Determine if buyer is purchasing primary residence (triggers Dodd-Frank) or investment property (exempt)

2.Select appropriate exemption (one-property or three-property)

3.Structure loan terms accordingly (balloon payments only under one-property exemption)

4.Document ability to repay if using three property exemption

5.Avoid prohibited terms (mandatory arbitration, prepayment penalties on non-QM loans)

6.Use deed of trust (not mortgage) and record properly

Conclusion

Richmond’s real estate market offers a compelling combination of relative affordability, strong appreciation trends, and deep financing infrastructure that supports creative strategies at every level. First time buyers should maximize Virginia Housing’s grant programs before exploring conventional options—the 2-2.5% DPA grants combined with the Plus Second Mortgage can effectively eliminate down payment barriers.

For investors, the path forward depends on capital availability and experience level. Those with limited capital should focus on assumable mortgage hunting (potentially locking in sub-4% rates) or lease options (controlling properties with minimal outlay). Investors with moderate capital can execute BRRRR strategies using Richmond’s robust hard money landscape, while those with substantial portfolios can leverage DSCR loans for unlimited scaling without income constraints.

The most sophisticated strategies, subject to financing, wraparound mortgages, and land contracts offer powerful tools but require careful legal structuring to navigate Dodd-Frank requirements and due on sale risks. Virginia’s relatively investor friendly legal environment, including Series LLC availability and non-judicial foreclosure, supports these approaches when properly executed with qualified legal counsel.

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Now what?

This happens more than you think.

And most buyers panic.

Here is exactly how I handle it:

First, understand what happened.

An appraiser looked at your future home.

They compared it to recent sales nearby.

They decided it is worth less than what you offered.

This does not mean the deal is dead.

It means we negotiate.

Option 1: Renegotiate the price.

Go back to the seller & show them the appraisal.

Ask them to meet the appraised value.

In a balanced market, most sellers will agree.

After all, they don’t want to risk starting over either.

A new buyer might face the same appraisal issue.

Option 2: Split the difference.

Seller comes down some.

You bring extra cash to cover the gap.

Both sides give a little.

The deal moves forward. I used this approach a few months ago.

Appraisal came in $12,000 low.

Seller dropped $9000. Buyer covered $3,000.

Everyone walked away satisfied.

Option 3: Challenge the appraisal (Typically my go to if it makes sense upon reviewing the comps myself)

Appraisers are human.

They miss things.

If we can show comparable sales they overlooked, we can request a reconsideration of value.

I keep a file of recent sales in every neighborhood I work.

This is not luck. This is preparation.

Option 4: Cover the gap yourself. (In most circumstances, this option is only suitable in hot markets)

Sometimes you love the house that much.

Sometimes the market is moving fast and you do not want to lose it.

If you have the cash and the conviction, you pay the difference.

This is a business decision. Not an emotional one.

We run the numbers together before you commit.

Option 5: Walk away.

Your earnest money is in most cases protected during the appraisal contingency period.

If the numbers do not work, you leave.

No shame in that.

There will be another house.

So, the real lesson here?

Low appraisals are not disasters.

They are negotiations.

And negotiations are won by people who stay calm, know their options, and act strategically.

That is why you hire an agent who has been through this before.

If you are buying soon and want someone in your corner when things get complicated, lets connect!

Daniel Yoon

804.896.2694

daniel.yoon@exprealty.com

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No one explained escrow to you.

They just said “your earnest money goes into escrow” and moved on.

So allow me to explain:

This is not a breakdown of every legal nuance. It is not financial advice. It is a plain English explanation of what escrow is, why it exists, and how it protects you.

At the end of this newsletter, you will understand:

∙What escrow actually means and why it exists

∙How your earnest money is protected during a transaction

∙What happens to escrow funds when deals fall apart

1. Escrow is a neutral third party holding your money.

When you make an offer on a home and it gets accepted, you put down earnest money. Usually 1-2% of the purchase price.

That money does not go to the seller. Not yet.

It goes to an escrow company. Or a title company. Or an attorney. Depending on your state/realtors suggestion.

This neutral party holds the money until closing. They do not work for you. They do not work for the seller. They work for the transaction.

Their job is to make sure the money goes to the right place at the right time.

2. Why does this exist?

Imagine no escrow.

You hand the seller $10,000 in earnest money directly.

The inspection reveals major foundation problems.

You want to back out.

The seller says no refund.

Now you are in a legal battle over $10,000.

Escrow prevents this.

The escrow holder follows the contract. If the contract says you can back out during the inspection period and get your money back, that is what happens. No fighting. No drama.

3. What happens at closing?

You wire your remaining funds to escrow.

The lender wires the loan amount to escrow.

Escrow collects everything.

Then they distribute it.

Seller gets paid.

Agents get paid.

Title company gets paid.

Lender fees get paid.

Taxes and insurance get funded.

Escrow is the traffic controller making sure every dollar goes where it belongs.

4. What happens if the deal falls apart?

This depends on why.

If you back out during a contingency period (inspection, appraisal, financing), you typically get your earnest money back. The contract protects you.

If you back out for no reason after contingencies expire, you might lose your earnest money. The seller kept their home off the market for you. The earnest money compensates them.

If there is a dispute, escrow holds the money until both parties agree or a court decides.

5. The most common escrow mistake I see.

Buyers wire money to the wrong account.

Scammers send fake wire instructions that look legitimate.

Buyers wire $50,000 to a criminal.

The money is gone.

Always verify wire instructions by phone.

Call a number you know is real.

Not a number from the email.

This is not paranoia. This actually happens a lot

Final words.

Escrow is one of those things that works quietly in the background. You do not think about it until something goes wrong.

Now you understand it. You know what it does. You know how it protects you.

When you are ready to buy, you will not be confused when someone mentions escrow. You will know exactly what is happening with your money.

And you will know to verify those wire instructions.

If you have questions about the buying process, reach out!

Message me

Daniel Yoon

804.896.2694

📧 daniel.yoon@exprealty.com

🌐 Website

You saved your down payment.

You found a home. Made an offer. Got it accepted.

Then your lender sends the closing disclosure.

And you see thousands of dollars in fees you did not expect.

No one warned you about closing costs.

So I will.

This is not an exhaustive breakdown of every fee in every state. It is a practical guide to what closing costs are, how much to expect, and how to reduce them.

At the end of this newsletter, you will understand:

∙What closing costs actually include

∙How much you should budget beyond your down payment

∙Strategies to reduce or negotiate closing costs

1. Closing costs are the fees to complete your purchase.

Your down payment buys equity in the home.

Closing costs pay for the transaction itself.

They cover lenders, attorneys, title companies, government recording fees, and more.

2. Expect 2-4% of the purchase price.

On a $400,000 home, budget $8,000 to $16,000 in closing costs.

This is on top of your down payment.

Many first-time buyers are blindsided by this. They save 5% down, find a home, and then discover they need another $12,000.

Plan ahead.

3. What is included in closing costs.

Lender fees. Origination fees, underwriting fees, processing fees. Your lender charges for creating your loan.

Title insurance. Protects you and the lender if there are ownership disputes later.

Attorney fees. Required in some states. Covers document preparation and review.

Appraisal fee. You pay for the lender’s appraisal.

Recording fees. The government charges to record the deed.

Prepaid taxes and insurance. Your lender often requires several months of property taxes and homeowners insurance upfront.

Escrow setup. Initial funding for your escrow account.

4. You get an estimate upfront.

Within three days of applying for a loan, your lender must give you a Loan Estimate.

This document shows estimated closing costs.

Compare Loan Estimates from different lenders. Fees vary.

5. You can negotiate closing costs.

Ask the seller for a credit.

Instead of negotiating $10,000 off the purchase price, ask for $10,000 in seller-paid closing costs.

The seller pays the same either way. But you keep more cash in your pocket at closing.

This is especially useful if you are tight on cash but comfortable with the monthly payment.

6. Shop for some services.

Title insurance. You can choose your own title company in many states. Shop around.

Homeowners insurance. Get quotes from multiple insurers.

Home inspection. Prices vary. Ask your agent for recommendations.

7. Some fees are fixed.

Government recording fees are what they are.

Transfer taxes are set by law.

You cannot negotiate these.

Focus your energy on the fees you can control.

Final words-

Closing costs catch buyers off guard because no one talks about them until the end.

Now you know. Budget for them. Negotiate where you can. And do not let a surprise $15,000 bill derail your homebuying plans.

If you want to walk through estimated closing costs for your specific situation, reach out.

I am happy to help you plan!

Message me

Daniel Yoon

📞 804.896.2694

📧 daniel.yoon@exprealty.com

🌐 Website

The safety nets in your contract (and when to use them)

Your offer got accepted.

You signed a contract.

But that contract has escape hatches built in.

They are called contingencies.

No one explains what they actually are. Or when you can use them. Or what happens when you waive them.

So I will.

This is not legal advice. It is a practical breakdown of the contingencies you will encounter as a buyer and how to think about them strategically.

At the end of this newsletter, you will understand:

∙The three main contingencies in most purchase contracts

∙When you can walk away and get your money back

∙The real risks of waiving contingencies in a competitive market

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What is a contingency?

A contingency is a condition that must be met for the contract to move forward.

If the condition is not met, you can back out and (usually) get your earnest money back.

Think of contingencies as insurance policies built into your contract.

2. The inspection contingency.

This gives you the right to have the home professionally inspected.

If the inspection reveals problems, you have options:

∙Ask the seller to fix them

∙Ask the seller for a credit to fix them yourself

∙Accept the home as-is

∙Walk away

The inspection contingency is your chance to discover hidden problems before you own them.

Most contracts give you 7-14 days for this.

3. The appraisal contingency.

Your lender will order an appraisal. A licensed appraiser determines if the home is worth what you are paying.

If the appraisal comes in lower than your offer price, the appraisal contingency protects you.

You can renegotiate the price. You can make up the difference in cash. Or you can walk away.

Without this contingency, you are on the hook for the full price even if the home appraises low.

4. The financing contingency.

This protects you if your loan falls through.

Even with a pre-approval, loans can fail. Job loss. Unexpected debt. Underwriting issues.

The financing contingency lets you exit the contract and recover your earnest money if you cannot get the loan.

5. When should you waive contingencies?

In a hot market, buyers waive contingencies to make their offers more competitive.

This is risky.

Waiving inspection means you own whatever problems exist. Foundation issues. Mold. Bad wiring. Yours.

Waiving appraisal means you cover any gap between the appraised value and your offer. In cash.

Waiving financing means if your loan falls through, you might lose your earnest money.

I have seen buyers waive everything and win. I have also seen buyers waive everything and regret it.

6. My approach.

I never pressure clients to waive contingencies.

But I help them understand the tradeoffs.

Sometimes a shortened inspection period is enough to stay competitive without waiving entirely.

Sometimes an appraisal gap guarantee (committing to cover a certain amount if it appraises low) is smarter than waiving outright.

Final words.

Contingencies exist to protect you. They are not obstacles to winning a deal. They are tools.

Know what they do. Know what you are giving up if you waive them. Make informed decisions.

The best buyers are not the most aggressive. They are the most prepared.

If you want to talk through your specific situation, give me a call

I am here to help!

Daniel Yoon

804.896.2694

website

You heard you need to get pre-approved.

So you went online. Filled out a form. Got a letter.

You think you are ready.

You might not be.

This is not a rant about how pre-approvals are useless. They are not. But this is to educate what “pre-approval” actually means, what it does not mean, and how to use it strategically.

At the end of this newsletter, you will understand:

∙The difference between pre-qualification and pre-approval

∙What lenders actually verify during pre-approval

∙How to make your pre-approval stronger than your competition

1. Pre-qualification is not pre-approval.

Pre-qualification is a guess.

You tell a lender your income and debts. They run quick numbers. They give you an estimate.

No verification. No deep dive. No commitment.

Pre-qualification letters are almost worthless in a competitive market. Sellers know they do not mean much.

2. Pre-approval is real.

Pre-approval means the lender actually checked.

They pulled your credit.

They verified your income with pay stubs or tax returns.

They confirmed your assets with bank statements.

They ran your debt-to-income ratio.

A pre-approval letter says “we looked at this buyer’s finances and they can afford this much.”

This carries weight.

3. Pre-approval is still not a guarantee.

The lender can still decline you later.

If you change jobs. If you take on new debt. If the home does not appraise. If underwriting finds something unexpected.

Pre-approval means you are likely to get the loan. Not certain.

4. The strength of your pre-approval matters.

Not all pre-approval letters are equal.

A letter from a big online lender that no one has heard of? Listing agents are skeptical.

A letter from a local lender with a reputation? Listing agents trust it.

Why? Because local lenders have relationships. Listing agents have worked with them before. They know the deals close.

5. How to make your pre-approval stronger.

Go beyond the basics.

Ask your lender to call the listing agent directly. This personal touch signals seriousness.

Get fully underwritten if possible. Some lenders will do full underwriting before you even find a home. This is as close to guaranteed approval as you can get.

Include specifics in your letter. A letter that says “approved for up to $500,000” is weaker than one that says “approved for [specific property address] at $485,000.”

6. When to get pre-approved.

Before you start seriously looking.

Not after you find a home you love. Not during the open house. Before.

You need that letter ready when you make an offer. Waiting even 24 hours can cost you the deal.

Final words.

Pre-approval is your ticket to the game. Without it, sellers do not take you seriously. With a strong one, you stand out from the crowd.

Take it seriously. Work with a lender who will make you look good on paper.

And do not confuse a quick pre-qualification with real pre-approval. The difference matters.

Questions?

Daniel Yoon

804.896.2694

Website