Curious about Norfolk

[Priscilla Quintana]

Hello BP! I am hoping to breach the condition of paralysis by analysis and finally get started on my highly anticipated/researched venture into long distance real estate investing. One of my biggest holdups was choosing which market to invest in but I think I can finally past that hurdle! My boyfriend lives in Norfolk as active military and after visiting the area and researching further I realized this could be a great cashflowing place to start especially if I keep visiting the area and move out there next year. This market is nothing like San Diego (where I currently live!) and being able to physically see the area first hand gives me the peace of mind to want to pursue investing out there as long as the cash flow numbers make the sense.. which seems to be the case out there! I am in the market for a duplex-quadplex for around a 200k. I'd like to potentially airbnb one of the units and rent out the other(s). Hoping to get a bit of advice from any investors in the area on a couple of pending questions:

1. Flood zones- I hear its a problem! Im struggling with deciphering the flood zones maps and determining which areas to avoid. Looks like most just have a search bar for specific addresses to see if they are in a flood zone. Are there more general areas that are known to avoid? If a property isnt in a flood zone do I still need insurance? Does flood insurance kill cash flow and am I making a bad decision by wanting to invest out here? Based on my research seems like the Ghent, Edgewood, and Lakewood areas seem to be the most desirable. 

2. Looks like the city is going to enforce Airbnb hosts to get licensed and pay taxes on rentals starting in 2019 but its not strictly enforced yet. Are there any current Airbnb investors in the area that can shed light on this?  

Any help would be greatly appreciated!!! Also welcomed would be referrals to local realtors experienced in working with investors and bonus if they are familiar with military investors as well(bf looking hoping to use VA loan to purchase MFL in the near future as well)

[Patti Robertson]

Originally posted by @Nick Foster:

One of my family members owns and operates a real estate brokerage in VB. While I was there we talked investments. His advice was to stay away from Norfolk and Hampton (where most multi family units are) primarily due to they are in bad areas and your tenant base will be rough. Instead, if I were to invest in VB I would likely pick up SFH blocks from the beach or condos that I could rent out on AirBnB.

Let me guess - your family member broker doesn’t actually own investment property, right? No one who is an intentional investor can make the numbers work in VB. VB landlords are or were owner occupants unless they are short term rentals.  I am also a broker who does personally invest in all our cities and my #1 favorite city to do business in, by far,  is Norfolk.  Rents are stronger than VB, purchase prices are lower, and they have programs for landlords that no other city in our market has.