Looking to get started in Newport News/ Norfolk
Hello all, I am looking to get started in real estate in the Hampton roads area. I’ve done a lot of reading, watched lots of BP podcasts and am ready to take the next step. I was curious to know any tips or best strategies for this market and really any information available. Would love to chat with some people and build connections! Thank you!
Quote from @Mel Volland:
@Joseph Harr @Riley Harrison Newport News does allow STRs, they recently rolled out their latest requirements. Though, I haven't gone through the process yet, I will be navigating on behalf of another investor who owns a series of duplexes there. I help local investors evaluate their properties for STR/MTR operations. While Norfolk allows them, it is a process you need to be prepared for, especially if your property requires a CUP. The process involves city planning and commissions, city council, local civic leagues along with making sure the property fits the criteria to pass…these items are not found on the website, so don't be fooled thinking you have it in the bag. I'm assisting a past client go through the process and we are 10 months into it and approaching the finish line! My #1 advice, make sure the long term rental numbers make sense when purchasing so in worst case scenario you have a fall back plan that keeps you covered if STR doesn't pan out. If ou are serious about this strategy, make sure you also work with a real estate agent or someone who knows and understands the nuances to get approved. Good luck out there! Feel free to reach out!
Mel,
Im just starting to invest in VA and looking at NN. Do you have any investment friendly Real Estate agents that you would recommend that understand STR/MTR? Im trying to find someone who will help me find off market deals.
Thank you
Quote from @Leslie D'alessandro:
Quote from @Joseph Harr:HI Joseph, Im looking to investment in NN or Hampton. Do you know if NN allows STR or MTR of 30 or more?
For Norfolk I'd do a short term rental like Airbnb, which is what I'm planning to do next. I'd like to get a place in Oceanview near the beach. Norfolk actually allows STRs and has a process in place to register with the city and pay the taxes and such. Newport News doesn't allow them at the moment (unless the house is also your primary residence that you live in) so we just hope nobody complains and shuts us down. Long term rentals could work in either city but I like to chase the big Airbnb money.
Thank you!
Hello @Leslie D'alessandro,
As far as I know, Hampton and NN are both similar in that they only allow STR if you also use the same building as your primary residence. However, if you look on Airbnb, there are hundreds of listing in those cities. I have heard reps from both cities say they only enforce based on complaints. I have an STR in NN and if my neighbors decide they'd rather not live next to an STR, they theoretically could just report me to NN zoning and they could shut me down. If that does happen, I'd just switch it to a MTR which is legal but I'd want to get a lease for monthly or longer stays to protect my interests. I think at 28 days renters get tenant rights and it would take an eviction to get them out. I did have one Airbnb guest who rented out my NN house for the entire month of April 2022, so I think it could work as an MTR.
My advice is if you want to do a STR, make sure it would still pencil out as a good MTR (or LTR better yet). I think it's too risky to bank on STR in those cities. Norfolk has an actual official process to do STR legally. VB does as well but you have to be in a very specific part of the oceanfront area or in Sandbridge. I have an Airbnb in VB but it's only allowed in my area because I live in the house as my primary so it's considered homesharing. It's a great house hack but if I leave, I'd have to MTR that one as well or sell it. I did MTR part of that house for a couple months last winter.
I'm an agent part time also so I can help you out if you'd like to buy a property, but I will say I'm personally a bit hesitant to get into more STRs right now because I feel like vacation spending could be the first thing people cut from their budgets if we head into a bad recession with job losses. However now (or soon) could be a good time to find a decent deal. These are all just my personal opinions so I encourage you to look into all these things and weigh the pros and cons. Hope this helps!
