Seeking Advice on New Markets and Strategies

[Scott Lovelady]

Hello BiggerPockets community!

My wife and I are embarking on a journey across the United States with our 2-year-old daughter and are looking for advice on potential real estate markets and strategies. Currently, we own a home in West Jordan, Utah, valued at $540,000, with a $340,000 loan and a monthly payment of $1,400. This 5 bed, 3.5 bath property could fetch a rental income of $2,600.

As we plan to rent out our current home during our travels, we're exploring new cities to potentially settle down in. Our itinerary includes Huntsville, AL, Augusta, GA, Knoxville, TN, and Norfolk, VA.

We don’t have any real estate investment experience. I have a bit of construction experience.

We'd greatly appreciate insights from the community on:

1. Market Recommendations: Are there particular markets in these cities or others you'd recommend exploring for investment?

2. Successful Strategies: What investment strategies have you found successful in these or similar markets?

[Sean Hudgins]

@Scott Lovelady Welcome to the community! That sounds like a great trip, and your current house will make a fantastic rental! 

I will chime in on the Norfolk, VA Market. There is a lot to love about this market and some downsides, which I will also cover. One caveat is that Norfolk is just one piece of a larger puzzle here. Hampton Roads is made up of 7 cities, and for the most part, Norfolk, Virginia Beach, and Chesapeake are all cities that I would consider if I were in your shoes, depending on your goals and lifestyle preferences.

Norfolk - is great if you're looking for more of the city vibe, and from an investment standpoint, this is where you will find the majority of available small multi-family units if that is something you're looking for. From an investment standpoint, I would recommend considering your location in proximity to the different military bases in the area, as the military here provides an excellent renter pool and keeps vacancy time pretty low on most units. The schools in Norfolk are a negative factor, and considering you have children, I imagine that would be a factor for you. Still, there are good private school options, and the other areas of Hampton Roads offer some great schools in comparison. Coastal flooding is another thing to remember when looking for housing in Norfolk, as much of it is in low-lying areas and is prone to flooding more so than in other areas.

Virginia Beach - This market is a bit more expensive. The area is spread out and has different pockets that offer different experiences. If you want to be close to the beach or have more of that coastal vibe, VB is your best bet. The school districts here range based on where you are located in VB, but there are some great options for schools in VB. Something else that may be new to you would be the Jet Noise; with Naval Air Station Oceana in south VB, there are areas of VB that can be very noisy compared to what you might be used to. The good news is that these areas can be avoided if they bother you, and you also get used to them pretty quickly. This area has some short-term rental opportunities, but it gets costly as most of the STR-zoned regions are on the beach. Long-term rentals can be found, and I have found that many of the townhome communities tend to give you the best ROI in VB (very generalized statement); however, if you are looking for more of an appreciation play, VB is a great spot to be in!

Chesapeake - This is the quieter part of South Hampton roads. The schools in Chesapeake tend to be the best in the area and some of the best in VA. There is an opportunity to get more land in this area, but it is still relatively close to conveniences. One airstrip in Chesapeake can cause some jet noise, but it's easily avoided and is only used for practice, so it's less busy than the one in VB. Compared to Norfolk and VB, the area also has a lot of new construction; they are constantly adding new developments in Chesapeake. There is good appreciation to be had in Chesapeake, but not quite as good as what you might find in VB. There is less nightlife here in Chesapeake, but more family-friendly activities to be had here.

Below, I will link some of the market stats for each area.

Norfolk - Market stats

Virginia Beach - Market stats

Chesapeake - Market stats

Hampton Roads Economic Report

Feel free to connect with me if you want to know more about Norfolk or any of Hampton roads. I focused on South Hampton roads in this post, but there is a whole peninsula that has its own diverse area that may be worth looking at!