All Forum Posts by: Taylor Bishop

Investment Property Information: 

Single Family (Two Story) Residential Property (Virginia Beach, VA)

Property Information: (2024 Sq Ft, 3 Beds, 2.5 Baths, Sunroom, Corner Lot.) 

Purchase Price: $215,000.00

List Price: $325,0000.00

Sale Price: $329,000.00

Financing Information: Private money 

How the Deal was found: Off Market/ FSBO Negotiated down from $250,000.00 to $215,000.00

Value Added to the property: Value added by installing vinyl water resistant flooring, renovating sunroom, renovating bathrooms (not full renovations), new carpet in the bedrooms, new trim/baseboard, knockdown texture, new paint, new outdoor carpet for sunroom, and updated detailed work etc. 

Outcome: Multiple offers within the first day, only took the 4k over with a guarantee of 4k, closing within 25 days of ratification. 

Profit: a little over $40k split between two partners. So, a little over $20k each. 

Challenges/Lessons Learned: If contractors look like they are slacking or not following through fire them sooner than later, as interest adds up as well as the cost of paying new contractors to do redo the work that needed to be redone. 

Hello, Tom, I use Stessa which is basic, but its a free rental property software. You can connect your bank to it, it runs basic proformas and keeps track on cap rate, net income, gross income, future scenarios, etc. It isn't bad and its free. There are also plenty of spread sheets out there and they do the job. Stessa also keeps track of property taxes, appreciation, deprecation, etc. Also look at the cities property taxes and see how much they go up each year on a percentage basis. When it comes to the washer/dryer issue I wouldn't assign one to each tenant. Also, the yard issue is kind of tough, the tenant shouldn't be fully responsible for the yard in no means. You would think that they would keep the yard in shape by cutting it and taking care of the most basic aspects of the yard. Although I have a property under contract in Virginia Beach that I am buying for a flip and the tenant has seemed to never cut the grass at all. Anyways congrats on getting the property under contract and good luck.

Hello,I lived in the Sanctuary condos for a couple years and the condo fees are outrageous.I think it could be during the summer but not as much during the winter time. I have posted about strs many times on this forum.

Hi, Austin, I am not a real estate attorney, but I can definitely recommend two attorney's in Virginia Beach who do have done a phenomenal job. I can definitely say that Hanger Law and Gunther Law have always done a fantastic job for me and my clients. I have always received first class service with both of these law firms and I have used them both multiple times.

They have been going back and forth on the short term rental issue in Virginia Beach for awhile now. We will see what happens in April, but I would suggest waiting as you mentioned. I have talked about the STR in many of my posts, I certainly wouldn't by an STR right now down at the beach. I would sit back while they get through the council meeting and see what happens, Norfolk doesn't seem to be as strict as Virginia Beach, Ocean View is becoming a much nicer area, your not far from VA Beach if your property is in East Ocean View you have the bay and your much more likely to find a decent deal out in that area than Virginia Beach. Anyways, I wish you the best of luck in your endeavors.

Basically, you are offering someone doesn't have their home listed a cash offer with usually a 30 closing, 14 feasibility study which gives you the opportunity to walk away or a way out. Of course in the Standard PA you have the right to assign the contract to another buyer. Your goal is to find a cash buyer within those 14 days, then hopefully assign the contact with an assignment fee. For example, let's say the offer is 145K, you find a cash buyer for 150K with an assignment fee of 5 grand. You will definitely need a skip tracing service IMO expect rejection and I wouldn't mention anything about wholesaling that's why you have the assignment clause. Make sure it's a decent deal, has a good ARV, so that your likely to find a cash buyer or investor who will make an offer.

Adam one of the biggest issues I am seeing with people first starting to invest is their patience is not there in a market that’s incredibly low on supply. Also not being realistic when something decent for this market does come up. Or not moving quick enough. If something decent comes up and the numbers make sense you better move on it if it’s a good deal. Being patient and being ready when something decent comes up very important. I have several rentaL properties going on the market in the next two weeks that rented well for many years. Anyways just be aware of the market and try to have an open mind of what’s going on. 

Hello Matt I am very familiar with the area have represented I have a flip property going on the market in two weeks and putting an offer on a rental property tomorrow. It’s a tough market right now, if you have any questions let me Know. My firm also manages over 160 rental properties right now.

Depends on where you are located in VB. Some condo associations do not let strs. However, they may be referring to location. Right now if you weren’t grandfathered anywhere at Ocean Front you have to get CUP. This may change to only the overlay districts at the beach and parts of shore drive being allowed. Sandbridge is the only place to be excluded from the ordinance passed in 2019. If you used a Realtor or agent for this they should have done their research if they knew your buying for a str if they didn’t know imo, not knocking the agent if you used one. It really depends on your location IMO.

Logan I have got lucky on a couple off market properties lately, but they were for fix and flips, not buy and hold. IMO this market is getting kind of ridiculous now, I think its overvalued extremely, such low inventory, any decent deal on the MLS which are almost not existent get 10 contracts the first day it seems if one does pop up. I would definitely make sure the numbers make sense if you do buy another property. The HR market has been kind of ridiculous imo. I had three showings today, an hour before I got ready to leave all of them canceled due to having an offer accepted, they are on the market not even a full day. Like I said the last property I found was off market which we closed last Friday, it wasn't a home run, but we'll probably get around 25 to 30k after we repair and put it on the market. Anyways, this market sucks for buying unless your able to find something off market.