Virginia Quadplex Too Good To Be True??

[Kevin Phu]

Ok BPers, I am in Norfolk, Virginia on a work trip and I'm taking advantage of my time here to check out the local real estate for future out of state purchases. I live in California and my income will go a very long way in a low priced market like Virginia. I also come here a lot because I work for the Department of Defense and Navy. I was eating dinner today and browsing listings on Redfin and I came across this quadplex in the Ghent/Park Place neighborhood of Norfolk (don't quite know the neighborhoods yet).

This listing looks too good to be true. What am I not seeing???

227 W 27th St, Norfolk, VA 23517

6 days on Redfin

List Price: 119,900

6 bedrooms/4 bathrooms

2,734 sqft living space

Total Current Rental Income: $2300 ($625x2 and $525x2)

Calculating with 20% down, 10% vacancy, 10% maintenance, 10% capex, and 10% PM

Monthly PITI=$638 and it comes out to $740 cash flow per month.

For Virginia investors, are these normal numbers????

[Marshall M.]

I researched both Ghent and Park Place in Norfolk for many months before deciding not to invest due to crime, flooding, etc. Most people  consider Park Place to be in the midst of gentrification and Ghent to be more upscale. I would watch out for slow turnover. There's also a lot of Section 8. That said, I do know two folks with experience in Norfolk I can connect you with if you are still interested.