New Investor Looking for Advice and Referrals

[Nikki Ford]

Hello, my name is Nikki and I'm looking to purchase my first multi-family home (duplex, triplex, or quadplex) in this area (Norfolk, VA Beach, Hampton, Newport News, Portsmouth). Ultimately I'd like to use it as short-term lease rental property, however I'm looking for property that could generate positive cash flow, even if I do the rental as a regular one-year lease. I'm retired military and would be using my VA loan and I already have one single family home on a VA loan. I'm looking for deals on class B/C properties that may require a little cosmetic rehabs, but nothing that requires a crazy amount of work. I'd appreciate any advice from real estate agents, property managers and investors who have experience with short term rentals and multi family properties in this area. I'd also be interested in any referrals for general contractors who have done rehab projects in this area. I appreciate your assistance!

[Paul Meyer]

Hey Nikki

Thanks for your service. I'm a Virginia Beach veteran too. Do you plan to live in the property as primary occupant? I wouldn't say it's slim pickin in this area but the VA loan only goes up to $400k lending so under that number the property is likely going to need some updating. My sister has found good properties in up and coming Oceanview area of Norfolk. Even I like it. I almost*** well I did put in a $125k offer on a 3-plex blocks from beach but it needed at least $150k rehab so I was relieved when they rejected my offer. It sat and I think they ended up taking that much (it was over $200k). Let me give you this advice, real advice, I typically buy THE WORSE properties and I get them pennys, dollars on the sqft, because investors constantly just want easily "light rehab" properties. I challenge you not to fear buying something that will need a lot of work to make it completely brand new and EXACTLY how YOU want it to look. At least that's what I do. It also opens up so many more properties. Sometimes I buy stuff off auction and just flip it for just a few thousand profit and they typically are scary properties but nothing any investor couldn't handle and make money on it and get in on at a better price but always I get the same comments "not interested too much work". Then I just end up renovating it and making money on it anyway. If you do find something that has a good location in hampton roads but it was on fire, flood damage, just hideous, become a visionary and close your eyes and imagine what is possible if you just throw in a low ball offer and use a rehab loan or equity loan to rebuild it into a fancy high renting home.

Areas undervalued people don't talk about but from my experience are HOT HOT HOT. Are Smithfield, Suffolk, all of Isle of Wight. I thought it was hick town until I did two flips theres back to back. You have a $200k house or mobile home right next to a sprawling $2 million dollar house and all the new neighborhoods start at $500k for 1800-2200sqft homes. Suffolk is growing and a lot of new jobs are coming there with the new mega warehouses. Just my two cents if you find something there. Don't fear to dream big.