I Need Connections in the Norfolk Area

[Justin Pierce]

We're located in Northern Virginia.  For the past 8 year's we've done very well flipping homes in the D.C. Area.  We have cash and we want to put it into cash flowing assets in other markets.  The Norfolk area is one that we've identified as a target market.

I have a portfolio of properties in a coastal county in NC so I know that flood zones and the associated insurance can be a cash flow killer.  Does anyone have anyone have any other suggestions on areas to focus on or stay away from?

[Patti Robertson]

Hi Justin.  I landlord and PM in all of our cities.  One other tip is to be sure all of your offers are contingent on a moisture termite inspection, even if they are as/is.  Ask me how I know.  ;) 

Also in Norfolk specifically, if you contract a duplex that is vacant, confirm current zoning to see if it is conforming or non-conforming.  Norfolk is trying to reduce density and many of the old duplexes are non-conforming. That's not a problem if the property has been occupied and operating as a duplex in the last two years, but once they are vacant for two years or entered into use as a single family home for at least two years, the grandfather expires and you have to convert it to a single family.  Fortunately I have never personally made this mistake and a friend who did shared his story with me so I was able to learn from his mistake.  I've known several other investors who purchased duplexes though, intending to use them as duplexes, only to get a rude awakening from the city.

Also, be aware of historic zones.  While they do offer historic tax credits, they do limit what you can do and greatly lengthen the time it takes to get any renovations made.