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Rory Compton
  • Realtor
  • Virginia Beach, VA
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Deal Analysis Help, Lake Edward

Rory Compton
  • Realtor
  • Virginia Beach, VA
Posted Sep 2 2017, 06:35

https://www.zillow.com/homes/for_sale/60649029_zpid/3-_beds/2-_baths/0-130000_price/0-474_mp/36.9289,-75.980244,36.703522,-76.280994_rect/11_zm/

The address is 6030 Margate Ave, and it is near Lake Edward.  It is a 3/2 1260 sqft townhome selling for 60k.  The price was just cut 45k last month.  Tax records assess it at 99k and I would guess it would rent for 800-1k.  Does anyone else have rentals in the area?  I am curious why it is so cheap and why it has been on the market for 250 days.

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49
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Rory Compton
  • Realtor
  • Virginia Beach, VA
9
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49
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Rory Compton
  • Realtor
  • Virginia Beach, VA
Replied Sep 2 2017, 06:52

@PattiRobertson  Do you have anything to weigh in with?  You seem to be the most knowledgeable and active for Hampton Roads on BP.

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Patti Robertson
  • Property Manager
  • Virginia Beach, VA
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Patti Robertson
  • Property Manager
  • Virginia Beach, VA
Replied Sep 2 2017, 07:55

@Rory Compton - It's a short sale, so the list price is really irrelevant, because it is subject to bank approval.  I'm sure the listing agent was baiting the listing to get offers.  It is under contract now, but we won't know at what price until it closes.  My prediction is that the purchase will be higher than the listing price.  As you said, it's been on the market since December, so there has to be some issue with it.  Sales are moving in the neighborhood.  Coincidentally, my husband and I are finishing up a flip at 5950 Margate right now.  It's also a 3/1.5.  We are getting $1350 from SEC 8 in Lake Edward.  You have to have a tenant with income to get rent that high, but it is possible.  

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User Stats

49
Posts
9
Votes
Rory Compton
  • Realtor
  • Virginia Beach, VA
9
Votes |
49
Posts
Rory Compton
  • Realtor
  • Virginia Beach, VA
Replied Sep 2 2017, 09:40

Thanks for the prompt feedback.  I work as a fire fighter, so I know the reputation of Lake Edwards quite well and intimately from a public safety standpoint.  Not from a real estate investment point though.  Sounds like you have some favorable impressions from both a flip and buy and hold?

I also read your blog on SEC 8.  How are you attracting SEC 8 tenants?