Investor · Virginia Beach, VA · Member since 2017 · 5 posts · 0 votes
Looking to invest 40 k in Virginia Beach.. looking for an investment multi family. Wanna know what to look at in regards to increasing value, since I know appraisals are done a little different from sfmh. Looking for something where I can meet the seasoning period on the loan and hopefully pull some of that cash out asap and keep purchasing properties is this a good strategy? I know there's some places I could use that money and buy way better deals but va Beach is where I live and where I wanna get started although I will be careful because the market is extremely hot. Please any advice will help
Just to chime in here on rents by city - assuming you are buying in a neighborhood where intentional landlording makes sense - as opposed to accidental landlording (your former high priced residence) - rents are not necessarily higher in Va Beach than the other cities. In my experience, Norfolk has the highest rents of any of our cities in the C class neighborhoods, which is where most people are landlording. In Virginia Beach you are lucky to find a rental purchase to meet the 1% rule, where as in our other cities that can still be done easily. Chesapeake mirrors VB in almost all neighborhoods except a few.
Virginia Beach and Chesapeake are difficult. Norfolk may be better. Check out the local Tidewater Real Estate Investors Group, next meeting September 19 at the Holiday Inn on Greenwich Rd near Newtown exit. There are others there that can guide you in the right direction locally.
Now my question is are you looking to be all in 40K for the purchase and work needed or your using that towards a downpayment to secure a loan? If the former chances are pretty slim in Virginia Beach but cities like Norfolk and Portsmouth you can likely make that happen but your still looking at duplexes or SFH. Honestly you will get more bang for your buck with buying cheaper and still getting pretty good rents looking outside of Virginia Beach in my opinion. Everyone wants to buy in Virginia Beach which is understandable as rents can tend to be higher but properties cost more as well. I wholesale and I'm a agent and would be more than happy to help you find something good. Feel free to reach out anytime.
@Miguel Angel sanchez you can find small multi-family deals in Portsmouth or Norfolk but if you're trying to BRRRR your way to a bunch of properties - which I think is a good strategy - I would try to find some more money or a partner. It's going to be tough/near impossible to find something where you'll be all in with purchase price and repair costs taken care of at that price.
You could look into getting a hard money loan for a 2 - 4 unit, rehab it, then refinance it six months later. $40k might be enough to put money down on two deals simultaneously, just be sure you'll be able to handle the monthly payments or find a lender who can/will roll the payments to the back end of the loan, at closing (costs a little more in interest).
Just to chime in here on rents by city - assuming you are buying in a neighborhood where intentional landlording makes sense - as opposed to accidental landlording (your former high priced residence) - rents are not necessarily higher in Va Beach than the other cities. In my experience, Norfolk has the highest rents of any of our cities in the C class neighborhoods, which is where most people are landlording. In Virginia Beach you are lucky to find a rental purchase to meet the 1% rule, where as in our other cities that can still be done easily. Chesapeake mirrors VB in almost all neighborhoods except a few.