Rental Property Investor · Woodbridge, VA · Member since 2008 · 543 posts · 121 votes
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?
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
9y
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.
Woodbridge, VA · Member since 2013 · 35 posts · 10 votes
9y
@Patti Robertson Thank you very much for the article you pointed out. Was a great read and will be very useful for me here in the future. Nice collection of nuggets in which i can prepare for even before having done it myself.
Thanks @Jason Magee for the double down. Section 8 is def something i'm interested in as well as the 757 area (Norfolk more so now then others). Hope to be pulling the trigger on something before the year is up.
Rental Property Investor · San Diego, CA · Member since 2016 · 507 posts · 171 votes
9y
Hey all! Out of state guy in Norfolk for the next month!
I'm interested in investing in Norfolk and surrounding areas in the future as out of state rentals.
I also plan on going to the TRIG meeting on Oct 17th. Are there other meetings that are going on from now until Oct 20th? I would love to maximize my networking while I am here.
What are some areas in Norfolk that I should not waste my time with and avoid right off the bat? I am not familiar with the area at all but I plan on getting familiar since I am here until Oct 21. I come to Norfolk because of work pretty often.
Items on my "to learn" list:
-Historic areas
-Flood zones
-Gentrifyin neighorhoods
-Going rent rates
-average ARV's for areas
What else should I focus on researching so I can better understand this market?
Alexandria, VA · Member since 2016 · 111 posts · 164 votes
9y
I also need connections in the Norfolk area. I live in Alexandria and my son used to study in ODU and I like the area around the university.I've been looking at MLS properties but they look like they're overpriced. I just want to connect with local people who know the area well.
Real Estate Agent · Hampton, VA · Member since 2017 · 88 posts · 24 votes
8y
@Renard Miller I love Bonchon downtown! @Amy H. when did you graduate? I went to ODU as well. Graduated 2010 and then with my Masters in 2012.
Evening, anyone have any access to contractors that may be able to give me a "quick" turn around quote on a home inspection report? I am negotiating with the seller on my first rental property! Super excited and I pray this goes through and all is well!
Real Estate Agent · Hampton, VA · Member since 2017 · 88 posts · 24 votes
8y
Hello! @Roberto Costa did you do this work yourself? I am looking for a contractor for a quote, ASAP. If you have any contacts, please let me know! I would appreciate it!
Rental Property Investor · Norfolk, VA · Member since 2016 · 90 posts · 26 votes
8y
@Jasmine Benford I did all the work myself. Ended up buying some more flooring on sale at Home Depot and replaced all flooring. Spent $4,200 in the rehab. Property doing great. No trouble calls first 3 months and tenant paying on time. If you need HVAC, electric, moisture or plumbing I have 4 awesome guys.
Real Estate Agent · Hampton, VA · Member since 2017 · 88 posts · 24 votes
8y
Thanks @Roberto Costa ! Yes, a plumber contact would be great. I’m negotiating with the seller and the galvanized drain from the kitchen sink to the main line is corroded and leaking. The seller has offered to give me money for repairs but I’m not sure if it’ll be enough (there’s other repairs). I feel like this is a strong deal, my concerns are the repairs may cost more than what I want to pay. So getting some rough numbers will definitely help!
Investor · Virginia Beach, VA · Member since 2016 · 22 posts · 6 votes
8y
@Patti, Thank you for the info about the zoning in Norfolk. I found a duplex, VA foreclosed, that was listed as a multi-family but once inside, it's apparent it was a SF. After my partner & I looked the property over, it wasn't a good deal. Now reading your comments, it may have been a good thing we did not pick it up.
Investor · Paso Robles, CA · Member since 2016 · 106 posts · 31 votes
8y
Hello all! Great info so far!
I’m an investor in California and am looking to purchase 1-2 duplexes, triplexes or fourplexes when I have enough for a down payment. Does anyone know which zip codes to buy in Norfolk, Portsmouth, Chesapeake or Suffolk? Also, which cities order would you put for best ROI? 1. Norfolk 2. Portsmouth 3. Suffolk 4. Chesapeake 5. Etc.... I honestly have no idea what the better and worse areas are. I’m just trying to stay away from ghettos and war zones. Areas where I can get good tenants that pay and don’t break and steel everything. Also, where places cash flow. Thank you all. I would really appreciate if you guys had any insight.
Rental Property Investor · Woodbridge, VA · Member since 2008 · 543 posts · 121 votes
8y
Marcello, what attracts you to the Norfolk area. You're way out in California, have you considered investing closer to home. Utah and Idaho are growing rapidly. I think their futures are extremely bright. I invest in Utah, even though I live in D.C. but I'm originally from the state and I make at least 1-2 trips there per year. Just curious.
Investor · Paso Robles, CA · Member since 2016 · 106 posts · 31 votes
8y
Good evening Justin, I appreciate you reaching out. My fiancé’s brother in law was in the Navy. He explained that every time he was in that area, he really thought it was a cool place. I started looking at some of the numbers. They don’t look that bad. I have several properties in Missouri and do very well over there. The numbers in Norfolk are pretty similar. I just don’t know anything about it really. I just started looking into it. I will definitely look into the cites you suggested as well. Do you think I should stay in the areas you suggested or go aaaaaall the way across the country? Any good zip good to look into for the respective cities you mentioned?
Thank you very much for responding :)
Rental Property Investor · Woodbridge, VA · Member since 2008 · 543 posts · 121 votes
8y
I am a fan of military towns. I've done well renting to service members. On average I think they're probably a little better than the general population. That's one reason I'm looking at Norfolk. The numbers are the other.
The Salt Lake City area of Utah has gone way up in price and it's really hot right now. It's one of top places that Millennials are moving to and buying houses. It's tougher to find deals right now but I thinks it's got a lot of long term potential.
I don't know Boise Idaho but it sounds like it is currently where Salt Lake was 2 or 3 years ago. I don't know the city though so I can't give you much guidance.
I don't have a lot of guidance for you. It's tough to get going in a new area if you don't have boots on the ground. I only live 2 hours from Norfolk and it's still a challenge to get down there and figure out what I want to do. I was just curious what attracted you to Norfolk and your plan for it.
Investor · Idaho Falls, ID · Member since 2016 · 912 posts · 629 votes
8y
@Marcello Oliveri It may be good to look outside of those major markets. Sometimes you can go just 30 min outside of a major city and find good deals, as many of the podcasts have pointed out. I am in Easter Idaho and there are still decent deals to be found. Certain areas are hotter than others though but the whole area is also going up as others are looking this way since Boise has become too pricey. I buy small MF (preferably 4 plexes) with around 6-7% cap and then work toward increasing rent and reduce costs.
Rental Property Investor · Jacksonville, NC · Member since 2011 · 55 posts · 18 votes
8y
@Marcello Oliveri- I'm military and have been stationed in Norfolk for about 6 months now. I absolutely LOVE this area.
The market is different from what I am used to in the sense that values can change block to block. You may have a $300k house on one block and two blocks over, or literally just on the other side of the rail road tracks, you have $30k houses. I think it would be pivotal to work with an investor's real estate agent since you are an out of state investor. You need someone who knows the markets here. My (now) friend, @Melanie McDaniel, is a great agent in the area. I met her thru the local RE meet up she organizes here monthly in Norfolk.
Investor · Paso Robles, CA · Member since 2016 · 106 posts · 31 votes
8y
Hey everyone, I hope you all are doing great. I’m still looking at investing in VA. I have been seeing some really great deals. I just don’t know if I am seeing the numbers correctly. I have been on rentometer and run some of the 2 bed, 1 bath duplexes and fourplexes. The rents are about $700-$800 a month a door. The properties are about $30-$40k a door. That’s approximately a 2% rule.
Am I going crazy or is Norfolk, Chesapeake and Portsmouth just super ghetto and the tenants destroy your properties. If their good tenants than I think this area is a gold mine.
Where would you stay away from and what major cross streets would you target?
I’m trying to determine exactly where to concentrate. Also, does anyone know a great property manager?
Rental Property Investor · Suffolk, VA · Member since 2017 · 143 posts · 78 votes
8y
@Marcello Oliveri They all have good areas and bad areas, but as a general rule any area priced at $30-40K per door is going to cost you more in maintenance and management. If you have a good property management company it could work for you. Norfolk is @Patti Robertson favorite city to buy and hold.
Investor · Annandale, VA · Member since 2015 · 54 posts · 10 votes
8y
Glad to see this thread still alive and kicking! I have been having success in Hampton Roads so far. My uncle use to fix up all of our properties down there but now has been busy so I'm in search of a good general contractor, if anyone has any recommendations, please let me know!
I'm also trying to get into multi-fam so if anyone is looking for partners, please let me know :)
Rental Property Investor · Woodbridge, VA · Member since 2008 · 543 posts · 121 votes
8y
@Jimmy Nguyen Finding good construction general and subs is my biggest challenge right now. You're in my neck of the woods. How often are you getting down the the Hampton Area? Are you finding your leads on MLS or are you advertising? Setting up a good ground game is tough in a new market.
@Janine Badic That's great. Are you picking up rentals or doing flips? What's your focus? Are you getting good flow? Do you feel like spring is a good time down there or is it saturated and better to wait for a lull? I've corresponded with @Melanie McDaniel as well. She seems awesome and I can't wait to meet here. I'm also trying to get down to one of those investor meetings.
Investor · Annandale, VA · Member since 2015 · 54 posts · 10 votes
8y
@Justin PierceI think I met you briefly one time at the capital rei group up here! Sorry I haven't been able to attend much, been trying to set up my system down in Hampton. I don't go down too too often because I have a property manager down there but I am about to head down possibly next week to meet with a few contractors. We just bought a property so I need to get it going. I am finding my leads on the MLS but yes like what most people said, the prices are getting a bit high also a reason why I want to go to multi-fam.
Rental Property Investor · Woodbridge, VA · Member since 2008 · 543 posts · 121 votes
8y
@Jimmy Nguyen, that's good to hear. Yeah, if you were at the Capital REI then we probably met. We haven't been having meetings lately. We all got busy. We'd like to put a meeting together again soon. Let's stay in touch on this.
Investor · Annandale, VA · Member since 2015 · 54 posts · 10 votes
8y
@Justin Pierce I actually just went down last Thursday to meet w/ a few GCs for my new property, they were solid leads. I'm waiting for quotes and will pick one of them to do the job and maybe will stick w/ them for any other properties I get down in the Hampton area. Let's meet up soon!