Looking to Invest in Portsmouth VA

[Carlos Toussaint]

Hey Guys, I’m a Cash Buyer In the Miami Fl area but I’m thinking about Investing in Virginia, preferably Portsmouth, Norfolk area.

My question is How is the Rental Market in these area? Also, which is more popular as far as renting;MULTIFAMILY or SFH properties?

I'm looking to travel to VA soon, so hopefully I can meet someone that can advise me on the City.

[Patti Robertson]

Hi @Carlos Toussaint!  I’m actually responding to your post visiting your market (at the Margarittaville in Hollywood) for the weekend, but I live in and do business in Hampton Roads.  I do own and manage in Portsmouth, but will not buy any more rentals there for many reasons.  Norfolk is by far my favorite city in invest and do business in.  I have posted on this topic before, but can’t figure out how to find it in my BP posts, so I will try to remember them all here. 

1) Property tax rates are the highest in Portsmouth of any city in our region.

2) It is expensive to get to Portsmouth from our other cities because of the tolls, and PTown (what locals call Portsmouth) is threatening to raise tolls again.

3) Financially, the city makes irresponsible choices.  They are always low on funds, yet this December they announced that because they had a budget surplus they would give every full-time city worker a $1,000 Christmas bonus. No money went to cops or teachers - just government workers.

4) The Housing Authority is a mess. A few years ago they under went a HUD investigation as a result of a resident lawsuit. There are many news articles you can find that reported o NTN is. Here is a link to one of them. https://www.wavy.com/10-on-your-side/special-report-more-public-housing-pitfalls/1156540028

5) It seems every few months someone in the political arena in Portsmouth is arrested or being investigated for some crime.  Here are recent examples. https://pilotonline.com/news/local/crime/article_d652c67c-86af-11e8-baa9-6bf25345dcce.html

https://wtkr.com/2016/03/21/portsmouth-mayor-kenny-wright-to-face-judge-on-felony-eluding-charge/

6) Portsmouth has ridiculous policies that make it difficult for real estate investors to do business.  They literally hired a team of 7 individuals (one of whom I rent to) who do nothing all day but drive around their assigned areas looking for grass violations.  The city gives you one warning per year and if there is a second violation of grass being more than 10 inches, they will cut it and send you a $280ish bill.  Yes we can pass this bill on to a tenant who was responsible for grass mowing, but who can afford to pay this for a minor offense? 

7) If you decide to accept a SEC 8 tenant in Portsmouth you have to get a required city inspection (cost is $40) and then an add’l SEC 8 inspection. The Housing Authority won’t give you a final acceptance of your rent amount until after you have passed both these inspections.  I have a big problem with that, and have expressed my opinion.  The Housing Authority director claims that all of the other HAs in our market are doing it wrong, and Portsmouth is the only one doing it right.  HUM... 

I could go on, and on, and on about why Portsmouth is on my no-buy zone list.