My name is Frank Cava, the owner of Cava Companies. I started the company in 2009 in Richmond, Virginia and have kept the company local to the Richmond, VA area. We do a variety of services like direct to seller marketing and wholesaling while also having a portfolio of well over 200 rental units.
In regards to wholesaling, we find a house, get it under contract, and then assign the contract with someone else as a wholesale deal.
We also buy homes, fix them, and sell them on the market (fix-n-flips).
And finally, we also buy homes, fix them, and turn them into rental units. We do more than 200 deals a year here in the city of Richmond and surrounding areas.
Why Investors are Interested in Richmond, VA
Richmond has gone through many life cycles including manufacturing and shipping agricultural products around the world.
When those services started to fall away, the city was reinvigorated with universities and the arts. Unlike Nashville, Charleston, or even Austin, Richmond kind of falls under the radar. It’s a beautiful city for us to do business in and for people to invest in for several reasons.
1. High Inventory
First, there is a lot of inventory. The city is very old, like I mentioned before, which means there are a lot of dilapidated houses. It’s also a diverse city. There are properties that sell for under a 100k and also well over $1M.
2. Business-Friendly City
Another interesting fact about Richmond is that it’s stabilized; somewhat like the crown jewel of Virginia. CNBC ranks Virginia as the best state in the country to have a business and Richmond falls in the top 10. It’s also very close to Washington, D.C.
Because it’s a business friendly city, it brings employment and keeps unemployment low. Virginia is usually below the national average, and Richmond is usually below the state average unemployment rate.
3. Opportunistic Market
Richmond tends to be less expensive than the big cities in Northern Virginia. Businesses tend to move their operations here so they can be close to Washington D.C. They are able to travel there more quickly and for less money.
Our Fix-n-Flip Process for Turnkey Properties
Like I mentioned earlier, we own well over 200 rental properties. We do all the work upfront before we put tenants into the property, so we can keep monthly expenditure incredibly low. We usually average around $50 a months on maintenance because we do so much of the work upfront.
Most of these properties we bought were inherited or had problems the homeowners didn’t want to fix. Before we rent the property, we go into the home, look for problem areas and fix them before the tenants move in.
Low Turnover Rate Among Tenants
We like to fix our homes and make them look nice. When a tenant moves into a nice home, they’re more likely to stay. We’ll replace cabinets, countertops, appliances, and backsplash to make it a home they can enjoy.
To put numbers to it, 93% of our tenants stay year over year, so we have about a 7% turnover rate. The reason for this is because they are nice homes and predictable. The energy bills are low and in many instances, these are the nicest houses some people have lived in and want to keep them nice.
We do this not only for our rental portfolio but also for the properties we want to sell because we want to keep a great relationship with that tenant. We want the tenant to stay, pay rent, and ultimately have high end returns.
Quality Finishes, Low Monthly Maintenance
A little about the finishes we choose for the homes…
We like to stick with neutrals because they look nice and new. We also tend to paint the floors because it’s much cheaper to paint a floor than to refinish it. If someone damages the floor, you just repaint it. It costs around 65 cents a foot to paint versus around $3 a foot to refinish.
As far as the backsplash, it’s a maintenance dream. If someone gets grease or something like that on the backsplash, it’s easy to replace and you don’t have to replace the drywall.
Interested in Investing with Us?
Bottom-line is at Cava Companies, we’re a team of professionals with a portfolio of nice rental properties. We do the right thing by the tenant by doing a combination of all the things we mentioned above and delivering a quality product that we think is incredibly strong, has great returns and hopefully gives us the opportunity to work with you.
To learn more about investing in our turnkey properties, fill out the form below and we’ll be in touch shortly.