Hold or Sell? VA Loan Rental in Norfolk, VA — Need Strategic Input

[Curtis Bryant]

Hey BP community,

I’m at a crossroads with one of my rentals and would love some feedback from folks who’ve faced a similar situation.

Property Snapshot:

• Location: Norfolk, VA

• Financing: VA loan @ 2.75% (assumable)

• Current Value: ~$405K

• Loan Balance: ~$229K now; ~$225K by April 2026

• Monthly PITI: $1,548

  • ~$500/month net cash flow after expenses

• No major repair issues

• No capital gains taxes if sold (meets exemption)

• Home warranty in place for 4 more years (transferable)

• My Situation:

• I’ve owned this since 2017. It’s been a good property — minimal vacancy, consistent rent, solid area. I’m currently out of state but moving back to Norfolk in late 2026. I’d like to buy a primary residence in the area at that time (~$500K–$575K range).

• Option 1 (Sell):

• Estimated net proceeds = ~$160K

• Use proceeds as a down payment on a new home

• Simplify finances and eliminate landlording responsibilities

• Market the assumable 2.75% VA loan to attract buyers (military-heavy area)

• Option 2 (Hold):

• Continue ~$6K/year in passive cash flow

• Property likely to appreciate 4–5%/year

• Keep low-interest debt in place while buying new home with VA or FHA (0–5% down)

• Use cash flow to partially offset higher payment on new primary residence

• Potential to 1031 exchange later if goals change

• Key Considerations:

• I’d like to keep my future primary home payment between $2,500–$3,000/mo

• My net worth is currently ~50% tied up in real estate (this rental + another)

• I have the VA eligibility to take out another loan

• Long-term goal is wealth growth, but I also value simplicity with young kids and a move coming up

• What Would You Do?

• Would you sell to unlock equity, reduce payment, and simplify? Or hold for long-term appreciation and rental income with a strong interest rate locked in? Has anyone marketed a VA assumable loan successfully? Did it help? Would you use the rental's cash flow to help offset your future primary's mortgage?

Thanks in advance — appreciate any insight or strategy suggestions.