Real Estate Investor Success in Virginia Beach?

Question

My local market is Virginia Beach, Va

Has anyone had success with a buy and hold rental strategy here?

Trying to decide to stay local vs look out of state if the numbers here dont make sense

Thanks for your input!

Mike

Patti Robertson · Answer

My personal no buy criteria are...

- I  no longer buy to hold in Portsmouth. Their political environment is just too unpredictable, the costs are higher, and the real estate taxes are the highest in our market.

- I don't buy in Huntersville in Norfolk. Other people do, and it is an opportunity zone, but it's too gang ridden for me. We owned one there because the price was outstanding, but my house got shot up with my tenant's inside and that was enough for me.  We sold it last year.

- I avoid 100 year old buildings and properties in flood zones.

Other than that, as long as the numbers work, I'm open to any location.

Ernest Grindle · Answer

@Michael Gil Hello, yes it is a great rental market in Hampton Roads. Virginia Beach is good but pricey. Norfolk, Chesapeake, and Suffolk are my favorites. If you buy in VB, Norfolk or Chesapeake, @Patti Robertson will manage them for you.

Patti Robertson · Answer

Rather I’ll tell you the areas I don’t like.  I’m OK with anything in Chesapeake. In Norfolk I won’t buy in Huntersville and part of Berkeley because of the gangs.  Google Norfolk gangs and you will read about what I mean.  I personally won’t buy in Portsmouth anymore because of the politics and city budget and the effects on investors. Google Portsmouth, VA HUD investigation, police chief, city manager, etc. and you will see the drama that is always going on.  Also Portsmouth real estate tax is 1.3, higher than any other city in our market and they keep threatening to raise it.  That said, if you buy in Portsmouth, Prentis Park is riddled with drugs and prostitution.  I own a house on Atlanta that just turned vacant and I cannot keep the prostitutes and homeless from breaking in.  We have literally boarded it three times and they are ruthless.  I’ll sell ya that one if you want it.  ;)  Also, from what I am monitoring in the Portsmouth police scanner FB group, it appears to me that the gangs are back in Cradock. Gunshots every few days.  I own and manage a ton there, but I would be careful about buying more.  The neighborhood was gang ridden years ago and the city cleared an entire street.  Things are changes now.

Michael Gil · Answer

@Patti Robertson Hey Patti! right now Iam just using the 1% rule, looking at zillow to give me an idea of comp rents in the area

Iam looking to invest the fall or winter of this year when theres alittle more motivation to sell

Ill use a HELOC to try and go all cash on my first deal

Kevin Sack · Answer

Seconding @Patti Robertson for management and local knowledge

Douglas Mcqueen · Answer

@Michael Gil we are local to Hampton roads as well investing in Norfolk primarily chesapeake and Virginia Beach as well if the numbers work

Victor Hill · Answer

@Michael Gil I purchased my first 4 plex in Norfolk last year, and it has performed better than I expected. I am syarting to looking for my next property. Hope your search goes well!

DeAnthony Edwards · Answer

I am in the Virginia Beach area, I agree that  most things here cash flow. I just got a deal in Norfolk off market but close to the base and downtown that will cash and got it under the market price. I will be looking for some deals later this year. To purchase a second property. Mind if I reach out to connect with you?

Danielle Bulla Isenhour · Answer

@Michael Gil

I have a client that only purchases condos & townhouses in VB and she always has positive cash flow. She and her husband sweat equity renovations and only hire contractors for major issues. Her strategy in VB has worked, but she flips house and is very familiar with budgeting and planning renovation projects.

I think there are plenty of great deals right here in Hampton Roads, and we have a secure rental market because of all of the military turn over.

Try Chesapeake! I’m closing on an off market deal today! It’s in the Portlock section of South Norfolk. Right off of I-464 and very close to the ship yard. We plan to renovate and rent out. Paying $72,500, plan to put $40,000 in to renovations. It should appraise for $200K. We will be pulling all of our cash out and an additional $30K by pulling a mortgage on it. We’re estimating $200 positive cash flow if we get rent of $1,400 per.

Helen Lowery · Answer

Have you considered further up the peninsula?  I've got two rentals in Williamsburg that are doing great.

Real Estate Investor Success in Virginia Beach?

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