New to BiggerPockets and Real Estate Investing

[Rich Lambert]

Hi All,

My wife and I are considering investing in a short term rental in the Virginia Beach area. We'd like to own property (house or condo) that we can use for vacation several weeks of the year and rent out the remainder of the time. The goal would be to find a decent 2 to 4 bedroom place close to the beach (or other outdoor attraction) that would allow us to realize a modestly positive cash flow. We might also be open to other markets, as long as they are within 4 hours of our home in Northern Virginia. As someone who has never invested in rental property before, I'm in the process of trying to educate myself, so I welcome any useful recommendations or suggestions related STR investing/analysis, financing, property management, etc., as well as any information specific to the Virginia Beach market. I'm excited to learn and look forward to engaging further with the community!

-Rich

[Jacob Sloop]

@Rich Lambert

Hey Rich, I’m a full time agent and investor in Virginia Beach , I’d love to help

Send me a message !

[Hari Bansha Dulal]

@Rich Lambert, let me know if you come across cash flowing STR or fixer uppers ~70% arv in VA beach. I live in Richmond and looking forward to expanding in Va beach.

[Sean Hudgins]

Quote from @Rich Lambert:

Hi All,

My wife and I are considering investing in a short-term rental in the Virginia Beach area. We'd like to own property (house or condo) that we can use for vacation several weeks of the year and rent out the remainder of the time. The goal would be to find a decent 2 to 4 bedroom place close to the beach (or other outdoor attraction) that would allow us to realize a modestly positive cash flow. We might also be open to other markets, as long as they are within 4 hours of our home in Northern Virginia. As someone who has never invested in rental property before, I'm in the process of trying to educate myself, so I welcome any useful recommendations or suggestions related STR investing/analysis, financing, property management, etc., as well as any information specific to the Virginia Beach market. I'm excited to learn and look forward to engaging further with the community!

-Rich

 @Rich Lambert, Welcome to the community! Virginia Beach is a great area, and we have some awesome spots for STR! One thing to be aware of here in VB is the STR zoning; not everywhere in VB can be short-term rented (<30 days). There are currently two specific zones in VB that allow STR, and they are very concentrated by the coast. Here is the Cities website that can help you better understand the regulations 

The first and most widely known would be Sandbridge; this market even made Vacasa's top 5 list (Article Here) of STR locations! The best part about Sandbridge, in my opinion, is that there are no Hotels to speak of, so they are extremely reliant on the STR market in that area, and Sandbridge has always been a vacation rental market even before it was "cool" so there has not been any push to regulate that area away from STR. the only real downside to Sandbridge is the price point is higher than other areas, the median price in Sandbridge is $928,000, but if you can swing it, I think it's pretty unbeatable for the area as far as STR demand goes.

The second STR-zoned area, which is relatively new, is called the oceanfront resort overlay. There are not as many residential options here, but it is worth keeping an eye on as this is the tourist hub when the warm season comes. The other advantage depending on your own style, is the proximity to attractions, whereas Sandbridge is pretty far from most attractions and is better known for the peace and quiet this area is close to all the happenings of the VB oceanfront.

Outside of these two areas, you would need to find a property that has been grandfathered in order to STR legally. Another option would be to look at the Ocean View area of Norfolk; though not quite as popular, it has a lower barrier to entry, and you can find some great homes very close to the water if not on it. Norfolk has less stringent STR regulations at the moment, but that could change in the future.

With you being in Northern VA, have you considered Lake Anna? I have spent some time there myself, and I think it is a great opportunity in the STR space. Oh, and it was #1 on the Vacasa list for the past two years!

Feel free to reach out if you have any other specific questions on the area!

[Rich Lambert]

Sean,

Thanks for the helpful information.  I do like the Sandbridge area, but as you say, it is quite pricey.  I'm not sure yet how much we can qualify for, given the current interest rates and addition of unknown rental income.  

What is the average price right now for properties in the oceanfront resort overlay?  And what types of dwellings are typical of that location?  Detached?  Multi-unit condos?  

To be honest, I hadn't really thought of Lake Anna, until I saw the ranking that you cited.  The proximity is certainly very attractive.  Do you have experience in that market or can you recommend someone that is familiar with the Lake Anna?

Thanks,

Rich

[John McDonald]

Hey @Rich Lambert, welcome to Bigger Pockets. Here's a property, that meets your criteria, it's close to ocean front and priced significantly below comps.

https://flipsquad.io/home/6cf6e3d2-8ba8-11ee-b035-777a860cd5

There's several others in the area that might be a good it.

Good luck with your search. 

Cheers,

[Rich Lambert]

Thanks! I'll take a look.

[Sean Hudgins]

Quote from @Rich Lambert:

Sean,

Thanks for the helpful information.  I do like the Sandbridge area, but as you say, it is quite pricey.  I'm not sure yet how much we can qualify for, given the current interest rates and addition of unknown rental income.  

What is the average price right now for properties in the oceanfront resort overlay?  And what types of dwellings are typical of that location?  Detached?  Multi-unit condos?  

To be honest, I hadn't really thought of Lake Anna, until I saw the ranking that you cited.  The proximity is certainly very attractive.  Do you have experience in that market or can you recommend someone that is familiar with the Lake Anna?

Thanks,

Rich

There are mostly condos and attached units under $800k, but there are some interesting small single-family new builds that are going in. The condo fees range between 300-900+ per month. Once again, these are the ones within the overlay zone, which is definitely an important factor. At the moment, there are ten properties for sale, with three being under contract. The remaining properties range from 297k condo with a $962 per month condo fee to a 2000 Sqft condo at $1.6m and a $2097 per month condo fee. There is one for $395k and a $420 per month condo fee. I would be happy to send you the properties; I have a search made up with the overlay layout specifically for these types of searches. There are some similar-priced properties in Sandbridge as well, so I wouldn't count it out, depending on what you are pre-approved for.

[Sean Hudgins]

As far as the Lake Anna market, I don't have any connections at the moment; if you go with that market and find a great agent there, I would love to connect with them. My only experience with Lake Anna was a vacation this past summer with family. We stayed in a great Airbnb and would absolutely go back. I would love to own property out there. One thing I will say about the Vacasa article is that the median price for Lake Anna was in the 400s, but I don't know that I would purchase a property out there if I couldn't be on the lake; I just don't see the demand being as great for non lakefront STRs. And taking that into account, you are back up to the price point around VB unless you can purchase some raw land and build on it, maybe.

[River Sava]

Welcome, Rich!

VB is a great area to invest. I ahave spent a lot of time in VA and now live in NC. If you are open to a longer distance, check out Wilmington, NC too

[Noah Bacon]

Hey Rich! 

Welcome to the forums!

I would recommend following the Short Term Rental & Airbnb Investing Forum where you might find the recommendations or suggestions you are looking for from other Short Term Rental Investors!

[Sloane Kraftsow]

Welcome to the REI and BP Community!

[Julio Gonzalez]

Hey there, Rich! Investing in a short-term rental sounds like an exciting venture, especially in the Virginia Beach area. You're in the right place to gather insights on STR investing, analysis, and everything in between.

Welcome aboard and best of luck investing! 
-Julio

[Theresa Holl]

Awesome.  Great to see you on the journey.  You'll find tons of useful tips in this forum.  During your research, don't forget to study how local hotels are doing too.  People often spend all their research focus on Airdna, not realizing that resorts and lodges are also your competition.  hotstats.com is one of my favorite sites for that.  Hotel KPIs are a bit different that STRs so if you want a hand walking thru any of the jargon, let me know. 

[Neil Anthony Giscombe]

Good afternoon Rich,

This is customarily the start of the busiest time of year for investors. There are great opportunities available to investors with the presumptive reduction in interest rates to come further in the year. Let me know if interested in looking at options.