All Forum Posts by: Sean Hudgins

@Curtis Bryant I was in a very similar situation recently so let me first walk you through what I did. We had a primary purchased in 2018 for $265K VA Loan here in Chesapeake. We refinanced in 2020 and got a 2.25% Rate. Shortly after that, we bought a new primary home across town as a live-in flip. The Current Value of the property is around $380k . This year was the decision point before the capital gains tax became a factor. Ultimately, we chose to keep the property and deal with a 1031 exchange down the road. The main difference between our properties is that our cashflow after all expenses was closer to $1,000 per month. I felt that the rate was not somthing that was going to be coming back and was to much to walk away from.

One thing to consider is that keeping the property may not be the best Return on equity, but it will be a better return than putting that money into a down payment on a primary home. I would advise that if you can afford the new primary without selling the rental or at least finding a more productive use for the equity, then I would keep the rental. 

As far as the VA assumption goes, there is not much of a buyer pool that is looking at the $400k range with $160k in cash ready for the down payment. I have successfully used the VA assumption more as a marketing tool, but with that much equity, I have not seen the buyers able to come up with the difference. If I were listing your property, I would expect that you would be accepting a much cleaner offer, even if someone could make the assumption. If you have multiple offers, the extended timeline of the assumption process becomes a big negative to you as the seller, so it makes more sense to take the cleaner offer.

If you want to discuss more, feel free to reach out. My contact info is below.

What's the cash flow look like on these? What kind of financing did you get as well? Give us some more details, I would love to know what's working for you!

@John Saravia It sounds like you have a couple of routes you can take based on the feedback others have already provided. I think you're on the right track with the idea of the HELOC and using that money for repairs and the sale. One point of caution for you is the 1031 exchange. Make sure you understand that process very thoroughly before you undertake it, as there are many timelines to follow. A possibility to consider is if he lived there for a year in the past five years, he could move into the property to meet the primary residence tax rules and then sell once those conditions are met to avoid capital gains taxes. This is a good option as well; if you're going to do the work yourselves, it's likely not going to be as quick an overhaul as you might want. (Been there, done that—3-month flip turned into 6 months easily when DIYing).

If you want to discuss more specifics, let me know. I have a local Real Estate Team here in Hampton Roads and would be happy to share my thoughts and talk more about the details. My contact info is in my signature, or feel free to DM me!

@Abiy Tedla Hey, I have a local Real Estate Team here in Hampton Roads, and would love to connect. What kind of properties are you looking for out here? Are you looking to build multifamily or just infill single-family homes?

Welcome to Hampton Roads! The market of 7 markets in one. Your best bet is to go city by city and decide if you want to invest in that city or not. What is your investing philosophy? Single family, multi-family, STR?

As for Comps, an appraiser will generally be looking within 1 1-mile radius. Keep in mind that if you cross major roadways within that 1-mile radius, those comps may not be valid, as the neighborhood could be completely different. 

I would be happy to connect with you and go over the different areas and discuss strategy.

 I have been investing since 2018 and have been an agent since 2022. I have one rental in Green Run and have also had some clients invest in that same area, which is why I really like it. I was active duty Navy prior to being a full-time agent. 

That's great, I love the SFR especially for equity build. I would be looking for something in Norfolk at that price point. I would personally try to avoid the super old homes if possible, just to keep things simple. Another great location would still be the green run area of VB. There are some good options in that area as well.

@Javin Platon , Hey, I would love to connect. I own three homes in the area and have helped some other BP folks find investments here as well. Something I have found especially in your price range is that Virginia Beach town homes do really well with cash flow, and there are an abundance of them in the area. My particular favorite area is Green Run, where I own a townhome myself, with low HOA fees, and lots of inventory to choose from.

Are you looking to just add to the portfolio or were you thinking about using up some of that equity in the other homes?

@Wyatt Ripton Welcome to the community!! Are you looking to do a small multifamily or more of a live-in flip in Norfolk? 

@Janelle Benzick, Welcome to the exciting world of REI! Sounds like you are in research mode, which is great. Are you looking to get into STR in the VB area, or are you looking outside this area? The Hampton Roads area in general has some unique STR Rules depending on the city and even the location within each city. As you read Avery's Book I would start looking into some of those local regulations so you are not surprised by them down the line.

If you are interested in sitting down, we have some local REI meetups. Also, feel free to DM me. I would be happy to discuss some of the intricacies of STR in this market if that's what you're going for.