All Forum Posts by: Sean Hudgins

Josh, welcome to the community. I am local to Hampton Roads and would be more than happy to connect. Hampton Roads has a lot to offer in the investing space. There are a couple of small meet-ups in the area as well that you can find in the event forums, as mentioned. I am a long-term single-family investor with properties in VB and Chesapeake, and as an Agent, I have helped several investors find properties. 

I will say Long-term rentals are tough to pencil in at the moment, but it can usually be done with a larger down payment. MTRs are great, and there is a lot of opportunity with the different medical facilities in the area, as well as the influx of military and the gaining popularity of MTRs among the general public, not just traveling nurses. STRs are a little trickier on southern Hampton roads . Norfolk is pretty loose on regulations, but fewer areas are desirable, and Virginia Beach has very specific locations that can be STR (Sandbridge and The Resort District). The only other option in VB at the moment is home share. If you can get into something with multiple units and live in one, you can STR the other units; just be ready to purchase something north of $1m for that strategy. The good news in Sandbridge is that the off-season is the best time to acquire a property out there and will give you a chance to get the property right before the next season starts.

Brendan, the VA loan can be a powerful tool in your investing career especially as you continue to PCS around the country. There is alot of opportunity to househack even if you do not go the MFR route. One fun fact to consider is that your first use of the VA loan does not come with the lending cap so if you did want to try and get a 4 unit on that first purchase you may be able to shoot a bit higher if you can qualify for the loan, which in VB may be your only avenue to multifamily without going toward the Norfolk area.

I'm a little surprised no one else has mentioned this yet, but if your agent is in compliance with the new rules, they would have had you sign a buyer-broker agreement before showing the house, and I pray before starting negotiations for you. That could mean that if you were to bypass the agent in this case, you may still owe compensation to that agent if you close the deal. 

As for the rest of the conversation, I think you have demonstrated that you and the agent are not a good fit. If you are unhappy with the agent and do not feel like they are providing value to the process, then you should move on. If you want to do it yourself, cool, go for it, know that if you use the listing agent, the commission they are going to get is for just doing your paperwork because they are not going to be truly representing you. (side note: Dual Agency is not legal in every state. so it may not even be possible.)

Next time you do find an agent, you need one who is a local expert and FULL TIME. Being a real estate agent is not something that can be done well if you are only half-in. 

 I definitely appreciate the docs you sent over! I know in the one email you had said that the Sandbridge life numbers were more reflective of the take home. Did your clients end up buying something out there, and have they shared with you what their actual take home has been? Also, did SBL mention what their management fees were?

 I am very familiar with Airdna. The main issue is that in Sandbridge, there are a couple of management companies that have their own booking sites, since Sandbridge has been a vacation rental spot for a very long time, well, before Airbnb was a thing. So many of the properties are booked through those sites, likely more so than on VRBO and Airbnb. So, my assumption is that Airdna does not have the data from those bookings. 

I know that Sandbridge was one of VACASA's top five most profitable STR destinations last year. If anyone has any real-world experience in the market, I'd appreciate it.

I am looking for some current operators in Sandbridge to chime in on this one. I have a client who is actively looking in the area for a vacation destination and STR (fellow BP Member). I am also extremely interested in getting into the market there in Sandbridge myself. One thing that I can see in our MLS is rental projections and sometimes live rental numbers for homes that have been rented in 2024. But I'm really more interested to hear from a current owner what they actually see coming back to them. There are a couple of larger management companies out there that have a majority of the market share, and they are usually the ones listing the properties, so who knows how accurate those projections really are?

Another question I would love some data on is what the numbers look like for the condo communities that are out there. Do they perform well? I see a problem with a lot of saturation in that area, and I can imagine that it is very difficult to stand out, and anyone that does operate one of those condos, would you do it again, or would you try to get a house next time? 

My general impression of the area is that you tend to be better off getting the more expensive homes, as they usually house more people and have significantly higher rental projections. Is this what you're seeing out there in the real world? Do you notice a sweet spot both in property size/vicinity to the beach?

Very interested to hear your numbers!!

Congrats Mark,

As Hamp mentioned, getting a management company involved before you deploy is a very smart move. When I was still active, the only time I would consider self-managing was when my tenants were college buddies and shipmates. Get that management company nailed down now, as they should have better marketing strategies so you can take those off your hands, and it allows you and the management company to align and manage expectations from day one. 

If you're going to stick to self-marketing the property, get those photos. You can try sites like militarybyowner.com and the groups you mentioned.

best of luck to you!

Igor,

I have helped several investors purchase properties in Norfolk and the surrounding areas. What kind of properties are you looking for? Hampton Roads, in general, is a great place to invest, specifically for a coastal area. It has been fairly undervalued and is starting to gain some traction and catch up to other coastal areas. Each city has different advantages and disadvantages, so depending on what kind of asset your looking for will likely guide you to which specific area you are going to be looking at.

Alex is in a good position. I would echo what @Jaron Walling said about selling on a step-up basis. 4k a month on $1m in equity is a 4.8% return on equity. He would be safer in a savings account at that rate (I know what you're thinking... appreciation, though). There are way better returns to be had in the market for a similar amount of work.

The only other thought regarding keeping the property is what the condition of the property is and if he could upgrade it and get a significant increase in equity position before he sells. 

He needs to decide what kind of investor he wants to be; if he wants a truly passive investment, then he should probably stick to the stock market. If he wants to put in a little more time and get a little more out, he should consider out-of-state investing, maybe some STR investments.

 Kensington is a great area—very trendy and close to the restaurant district off Colley Ave. The closer you can get to Colley, the better off you are. But for small to medium multi-family homes, it’s hard to beat that area. Park Place is similar but a little less popular, but still a good area. Depending on the deal, I would not shy away from either neighborhood.

It's also a great spot for mid-term rental with the Sentara campus right there.