All Forum Posts by: Justin Pierce

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.  

@Roberto Costa thank you.  That sounds like a pretty solid deal.  How much work does it need? For how much will it rent?

@Armando Melchor, I'm not buying in those cities.  I just used them as counter examples of more preferable smaller markets.  One market that I am concentrating on is very small, Jacksonville NC.  It's also a military town.  I just put a town home under contract for $45,000 it needs a little electrical work and carpet and paint.  I expect to be into the home for less than $55,000 after fix up and closing costs.  It will rent for $750-$800 per month.  That hits about a 1.4-1.5% rule.  It will be worth $80-90k when the dust settles.

I found that deal by just networking with realtors. It was a VA foreclosure. I am also running craigslist adds to connect with wholesalers and doing some targeted direct mailing.

I have 3 other rentals in the town.  One I've owned for 15 years. They have been very good properties.

@Renard Miller thanks for the input. I like Hampton VA for the simple fact that you don't have to cross the bridge, or I guess it's a tunnel bridge. That saves a lot of commute time especially during beach season. There are also some very nice looking little communities in there. I just don't know about the tenant base in Hampton. I assume there's more employment in Norfolk and that the potential tenants there would probably not want to cross the bridge either.

When I'm looking at the MLS prices in Norfolk and Portsmouth I like what I see. There's a wide gap between fixer upper and remodeled homes. That is a good indication of opportunity. But, you have to know the market to be sure. You also need a team.

So, I'm in the early stages right.  So far I like what I see but I'm trying to do my homework.

@Armando Melchor, I don't need 2% deals.  I'm pretty happy with about a 1.3-1.5% deal.  I also prefer secondary markets over top performing markets.  I've been doing this for over 15 years and I find that, in most cases, if a market is top performing now you probably already missed the opportunity.

I'd be more interested in cities like Indianapolis, Saint Louis, and Kansas City.  Probably not going to get the same appreciation that you may get in Denver but I think businesses are going to start moving to secondary markets as technology makes their operations more mobile and they realize it's cheaper to do business in smaller markets.

@Armando Melchor Hello. How's the market down in VA Beach?

@Patti Robertson thanks for responding.  Great info!  I never mess with non conforming multi families.  I bought a duplex once that was a converted rambler.  It actually turned out pretty good but I certainly saw the potential problems.  

I plan to make a couple trips down there to get to know the area.  

Does the future look bright for Norfolk in your opinion?

@Ayana Miller thanks for the information.  How often do you travel down to Norfolk?  Are you buying multi family? What's your strategy.  

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?

The subject to did not work in this  case.  The wife did not want to play ball and now the late fees and interest have killed the margins on the deal.  Trying to negotiate a short sale but if the wife isn't willing to cooperate then this thing is going to foreclosure.  These are complicated deals.