Stay away from house on main road??

Newport News, VA · Member since 2017 · 9 posts · 4 votes

There's a house on the "main road" that I'm interested in, but my realtor says we should look for one not on the main road.

The house is in a very desirable neighborhood because of the school district. The house is listed for 130k, foreclosure. Houses that are further in the neighborhood, comparable size, are 230k.

I plan on buying and renting it out for a long-term buy-and-hold strategy. But I'm brand new to this and don't know what I'm doing. Do renters refuse to rent houses on the main road even if it's a desirable neighborhood?

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Russell Holmes

Real Estate Broker · Apopka, FL · Member since 2017 · 492 posts · 528 votes

Another small detail that can make a large difference in usability: can one turn around in the driveway or is there a horseshoe or loop driveway? In my area there are lots of houses that, when built, were likely on small rural roads. Those roads have since widened and now access whole neighborhoods and expansion. The ones with enough room to pull in forward, turn around at some point, and pull out forward seem fine. They all seem to fence the back and use the front yard only for parking and access. If the driveway is short and forces people to back on to a main road, I'd pass it up

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Sai T.
Investor · West Chester , PA · Member since 2011 · 620 posts · 138 votes
8y
It depends but most ppl do not like homes on Main Road. Main reason I do not like it is difficult to going In & Out and parking issues.
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Account Closed
Investor · Saskatchewan , Saskatchewan · Member since 2017 · 311 posts · 233 votes
8y
Your only accurate comparable will be what has sold directly on the main road. Not something a block or five into the neighbourhood. That place will be noticeably harder to rent, and sell. So if you’re buying it, budget 2x your normal vacancy and you better be getting a deep discount in price. (I’d just listen to the realtor)
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Charlie MacPherson
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
8y
@Eric Schuster When working with buyer clients, whether they're investors or retail buyers, I always discourage buying a property on a double-yellow line.
Buyers with small kids worry about the lids chasing a ball into the street and getting killed. That and the traffic noise make living there less desirable - especially if there is heavy truck traffic. Even worse if it's on an incline where trucks are using jake brakes (enging braking).
It will not only effect your ability to rent it, but when the time comes to sell, it will take longer and sell for less than a block away from the main drag.
That said, there's a butt for every seat. If you can get it at the right price, go for it, but there should be a meaningful discount.
When determining the right price, @Account Closed is exactly right - use ONLY comps on a main street and preferably, the same street, sold within the last 6 months if possible.
One thing you light look into - here in MA, our DOT has a website where they post traffic counts from all over the state. See if VA has that as well. That might give you better insight as to how severe the traffic issue really is.
You also didn't mention the condition of the comps. That, along with the location, square feet, beds, baths, etc will be big determinants of value.
Good luck!
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
this is a little bit off topic however I will say in CLASS C D low value assets main roads are fine.. and actually can be better as crime is much less likley to hit a home on a main street..
if its a rental and long term and your getting a great deal.. I think your OK.. just know some limitations and as others stated in that asset class a comp not on the same type street is NOT a comp.
@Charlie MacPherson Charlie whats your thoughts on this.. this has been my experience in some of the rougher areas my PRO landlords work
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Charlie MacPherson
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
8y
@Jay Hinrichs That's not something I've ever contemplated, so I reserve the right to be wrong.
As I look at the rougher parts of greater Boston, I've never seen anything that would make me think that the main streets are safer than side streets.
I have a few cops in the family. I think I'll ask them!
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
@Charlie MacPherson I did not look at it that way either but was told this by my vendors that own hundreds of C class rentals.. waht they don't like is private secluded streets... houses get stripped there.. when I think about it makes sense.
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Charlie MacPherson
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
8y
@Jay Hinrichs I suppose that's a reasonable assumption. One more thing to throw into the pot!
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Account Closed
Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
8y
I prefer main roads. Is there long term commercial potential? Is the road going to be widened.
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Eric Schuster
OP
Newport News, VA · Member since 2017 · 9 posts · 4 votes
8y
Originally posted by @Account Closed:

I prefer main roads. Is there long term commercial potential? Is the road going to be widened.
I don't think so. It's residential on one side, close to the road, and a strip mall on the other side. It's 35 MPH, very few trucks. But it's a lot of traffic, the main way to get to Newport News shipyard, which is one of the main places to work.
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Eric Schuster
OP
Newport News, VA · Member since 2017 · 9 posts · 4 votes
8y
Originally posted by @Jay Hinrichs:

this is a little bit off topic however I will say in CLASS C D low value assets main roads are fine.. and actually can be better as crime is much less likley to hit a home on a main street..
if its a rental and long term and your getting a great deal.. I think your OK.. just know some limitations and as others stated in that asset class a comp not on the same type street is NOT a comp.
I think it's a Class A neighborhood. The houses on the main road however definitely have a different feel to them. And if you drive into the neighborhood 2 blocks you're on the James River, and very expensive houses.
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Russell Holmes
Real Estate Broker · Apopka, FL · Member since 2017 · 492 posts · 528 votes
8y
Another small detail that can make a large difference in usability: can one turn around in the driveway or is there a horseshoe or loop driveway? In my area there are lots of houses that, when built, were likely on small rural roads. Those roads have since widened and now access whole neighborhoods and expansion. The ones with enough room to pull in forward, turn around at some point, and pull out forward seem fine. They all seem to fence the back and use the front yard only for parking and access. If the driveway is short and forces people to back on to a main road, I'd pass it up
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Chinmay J.
Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
8y
Originally posted by @Eric Schuster:

There's a house on the "main road" that I'm interested in, but my realtor says we should look for one not on the main road.
The house is in a very desirable neighborhood because of the school district. The house is listed for 130k, foreclosure. Houses that are further in the neighborhood, comparable size, are 230k.
I plan on buying and renting it out for a long-term buy-and-hold strategy. But I'm brand new to this and don't know what I'm doing. Do renters refuse to rent houses on the main road even if it's a desirable neighborhood?
Can you not put a wooden fence around the place to make it more renter friendly. That can alleviate some fears. I can understand concerns people might have. Every once in a while there is a news story where some drunken moron drives into someone's living room or kitchen in his pick up.
Can't make this up..
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Eric Schuster
OP
Newport News, VA · Member since 2017 · 9 posts · 4 votes
8y

Can you not put a wooden fence around the place to make it more renter friendly. I can understand concerns people might have.
In the front yard? Never really considered it
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Chinmay J.
Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
8y
@Eric Schuster - I was referring to something like this if there is even a little bit space to put a fence. It makes the property look a lot more desirable.. Just my take.. That's all.
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
8y
I personally won't buy on a main road. I have seen some landlords have difficulty getting tenants in them unless for a reduced rate. As to buying in other areas, like Lehigh Acres, FL there are LOTS of secluded houses that get burglarized for appliances, etc. My last (and only flip) in Lehigh got burglarized 3 times before we sold it. Appliances, cook top on outdoor kitchen, and kids using the pool and ripping shingles off to play Frisbee.
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Heidi Wilson
Charleston, SC · Member since 2017 · 84 posts · 46 votes
8y
This is a really tough question to answer in generalities. Generally speaking your realtor is correct. But there are always exceptions which prove the rule and you may have a sense of a “deal” here that your realtor does not. I have a house on a busy street which bizarrely is currently undergoing a renaissance - lots of flips and some big new houses going up. So it made sense and is profitable. It’s rented to a young couple with no children so they don’t care about the busy street. Plus it has a circular drive. But yes generally you get a bigger buying pool when you have a secluded street so there is a $/sq ft premium for those homes. Def look at comps *on that street* and know your neighbourhood.
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Eric Schuster
OP
Newport News, VA · Member since 2017 · 9 posts · 4 votes
8y
I have heard that renters are not as concerned about it being on a main road. It's a factor, but not as important to them.
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Anthony GaydenPro Member
Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
8y
Eric Schuster I owned a house on a busy main road and it sucked. Keeping that in mind there is one huge advantage to your property being on a busy main road. Advertising your rental will be very easy. The drive by traffic alone will likely guarantee you keep it occupied.
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Michael Guzik
Real Estate Agent · San Antonio, TX · Member since 2017 · 523 posts · 362 votes
8y
@Eric Schuster This is a really good question and I believe there are always two sides to every coin. Yes it may be on a "main road" but every house and market is very different and very circumstantial. I'm not sure if you can or want to but allowing us to google maps it and get a good idea of the street would help us give much better feedback. I would just trust your gut, does it feel right? Do the numbers check out? How many cars drive by every day? Are companies and stores popping up around it? Are their good schools in the area? Many people would live on a main street if this meant their kids would be in a safe neighborhood, and go to a great school, on the same note other people don't like that idea at all. Every one is different, if you do decide to take it down you are going to have to be creative and think outside the box on how to make it appealing to buyers/renters. Turn every weakness into a strength or only focus on the strengths of the property not it's weaknesses. Good luck!
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Steve Janiak
Chelmsford, MA · Member since 2017 · 25 posts · 13 votes
8y
I own a SFH on main road double yellow line in St Pete probably C+ area and I never have a problem renting it... we just put a sign out front. I have a tall wooden fence around the back which helps. I have heard comments from families with little kids not interested after seeing the traffic. However, given the hot economy I’m thinking selling taking my profit find something off main road. I’m trying figure out if holding my SFH in St Pete on main road near nice beaches and growing city of St Pete is better or buying a nice condo in a nicer area off main road with Good schools near Tampa is better in long run!
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Eric Schuster
OP
Newport News, VA · Member since 2017 · 9 posts · 4 votes
8y
The address is 10827 Warwick Blvd. It's a very unique neighborhood called Hilton Village in the middle of Newport News. If you go just a couple blocks towards the James River you got some really nice homes but if you go downtown a little bit you've got some seriously dangerous neighborhoods.
It's a very desirable place to live because of the elementary school, river, and some other factors. It actually has a stuck up/snobby reputation. I live just a block over closer to River Road.
That's why the house right on Warwick could be a diamond in the rough. Even if it rented at a considerable discount, it may still cash flow pretty well.
Thanks for your input everyone.

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Tom Parris
Realtor · Tampa, FL · Member since 2016 · 340 posts · 248 votes
8y
Hi @Eric Schuster,
I read an article from the National Association of Realtors (NAR), which was about how much less does a house sell for if it's in one of these areas. Areas like on a main road, backed up to a freeway, in the landing flight path of an airport. I believe main roads was an 11% discount. So run your comps for sale and rent, but reduce 11% to be realistic.
I would post the link, but couldn't find the article.
Good luck!
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Kevin Dong
Flipper · Fort Myers, FL · Member since 2017 · 182 posts · 98 votes
8y
the property on main road is actually more desire in my area. Less crime and higher rental rate and sell more. In Lehigh acres . I don't know about other area though.
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Marian Smith
Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
8y
Just as everthing sells for a price, everything probably rents for a price...not 100% sure but someone lived there all these years. What is the cheapest place for rent in this area with the good schools? Actually, call a property management firm and ask them what kind of rental price reduction to expect for a busy street location in your area. Also, Would you live there? Or would you pass because it would be a hassle getting out of the driveway every morning?
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Fred Heller
Real Estate Agent/Property Management · Houston, TX · Member since 2014 · 1k+ posts · 827 votes
8y
My neighborhood is one of the hottest areas in Houston. One block north of me is a major arterial street, which goes back and forth between residential and commercial.

The houses on that street tend to sell for a lot less and they also rent for a lot less. And they seem to stay on the market for a LONG time.

There's one house on the street that seems to go on the market every year. And it takes months to find a new tenant. It's next to a McDonald's.

I would probably avoid it.
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