Hampton Roads

[Kyle Forbes]

Hello everyone! I'm looking at trying to find a small multi family in the Norfolk, Virginia Beach, Chesapeake ( Hampton Roads ) etc. and I'm wondering what are some good areas to invest in as well as what are some areas to avoid investing in. In Norfolk around 35th and Llewellyn it is such a weird area. Some streets look nice, but maybe one street over it could maybe be a war zone. Is this a bad place to invest? Also in the Norfolk area I'm having trouble finding what the ARV for a small multi would be, which is making it difficult to try to analyze deals. I understand this is a broad question, but if it's at all possible to answer even if through an example, what does a fixed up multi successfully sell for?

[Sean Ploskina]

35th and Llewellyn is the edge between the worse parts of park place(south to 26th st) and north into the nicer riverview and east of ODU.  It is getting better but if the market turns it will go downhill first.  Portsmouth and Norfolk have some areas that can cashflow and aren't dangerous but you have to hunt for them.  I found a duplex on 16th bay last year that required 15k in rehab but at a purchase price of 92 and rents of 1000/unit its worth it.  Most of the time around here it is 1% like @Thomas Fortune said.  Also like he said multis will not cash flow unless you are 50% ltv.  Be patient, the multi market has gone a little crazy here and most are 30+ years old if not pushing 90-100.  

@Kyle Forbes