Hello Bigger Pockets. I am brand new here and excited about learning.
My wife and I are committed to starting our investing journey in 2021. I am an operating partner & General Manager for a very large automotive franchised dealership and we are ready to diversify our earnings and income by investing into real estate. Long term mission is commercial multi family, but in the more immediate we would like to potentially embark on some Airbnb for some immediate cash flow.
I’m curious to know if anyone on here has experience in the Virginia Beach/tidewater market and if so does anyone know whether apartment communities here allow short term rental subleasing?
Much thanks in advance for any guidance & support as we start this journey.
Look on Airbnb and see what other people are doing. Look at Luke Carls post yesterday that mentions the Enemy Method. Don't read my old posts, they are horror stories.
Welcome to BP. There’s plenty of resources about commercial real estate. What kind of commercial property would you own?
Welcome, @Wes Mccullar ! Don't be afraid to ask questions and learn from the mistakes of others!
Welcome to RE investing and BP. Anyone who wants to cash in on Airbnb will quickly be identified, and might hate it. Anyone who is passionate about being a super host and learning how it works, is bound to cash flow nicely. Be clear on what you want and where your interests lie. Your path is perfectly logical and doable, but STR's shouldn't be looked at as a simple means to an end. It is, but it takes experience first.
Look up current hosts in the area you’re focusing on. Read their listings, study their pricing and calendar, message them and pick their brains. And read this forum from start to finish.
Good luck and welcome.
Virginia Beach has pretty strict rules for STR, except the Sandbridge area. To get a better understanding of the rules, go to the city website and read about it. You should also watch some video recordings of the city council meetings where the people applying for STR permits had to come to the public hearings and face the opposition.
There are people, including some politicians are talking about changing the city laws to make it less restrictive, but so far it's just talks.
Hey @Wes Mccullar ! Welcome to Hampton Roads investing. Each of our cities has different rules. They are a pretty quick read on the city websites. Know the rules and zoning restrictions before you buy. I've gotten calls from Peeps who bought expensive property counting on STR income only to be denied a permit. That's an expensive mistake.
Welcome to BP! STR has a lot of rules and each city if different.
In terms of finding owners who would allow a sublease I have 6 units that I sublease from owners. I do not to STR strictly speaking but 30+ night stays for my own purposes.
For me it was do your numbers first to determine what you can pay including all utilities, city taxes, fees, rent, set up cost.
Then you can eliminate the properties that won't cash flow.
Then start searching online for places for rent and start calling, it was a numbers game for me. Don't get discouraged and take a borderline property they are not worth the extra headache just to get something, wait for the area and property you want.
Apartment buildings is what I’m interested in.
@Sean Ploskina good feedback. Thank you Sean
Welcome @Wes Mccullar ! It looks like you got good feedback already.
I signed up for the free trial on mashvisor (dot) com before I started hosting on Airbnb. It's an expensive subscription so I only used the free trial, but I would recommend taking a few days to look through the area using mashvisor. It gives airbnb comps that include price, occupancy rate, pictures, etc. I found that comparing occupancy rates for properties in different price ranges was really helpful.
If you're looking for STRs, I'd suggest looking into hosting for traveling nurses. I think the STR supply for vacation spots close to the beach is high, but quality STRs near hospitals is low. Traveling nurses are generally great tenants and you'll have less turnover. PM me if you have questions about anything!