Virginia Beach, VA · Member since 2020 · 5 posts · 1 vote
Hello BP (new user, first post). I'm curious what the value could be of a 2 cottage property in Virginia Beach. Technically, it's a duplex. The property is a 800sf 2/1 with a 400sf 1/1 over the detached garage all sitting on a half acre. I live in the 2/1 and finishing up a reno of the 1/1. The 1/1 previously rented for $650/mth, and it was a total SHI*HOLE. I think this 1/1 (even though it's small) could rent pretty easy for $900/mth as it has ample parking, a storage area, and a private fenced yard. I also could rent the 2/1 for 1200-1300/mth. What would a property like this be worth to an investor? Thanks, Brian.
@Brian Yonker - Have you checked zoning to see of the garage apt is legal? While you usually don’t have an issue renting unless a neighbor turns you in, it won’t carry the same value for a resale if it can’t legally be used as a duplex.
Welcome to BP! It depends on where in VB the duplex is located. I would love to talk specifics but your rents sound about right if you are anywhere close to the beach. As for the market value, I would need to know the exact property address to help. With that said, it sounds like you have a solid place on your hands!
@Brian Yonker - Have you checked zoning to see of the garage apt is legal? While you usually don’t have an issue renting unless a neighbor turns you in, it won’t carry the same value for a resale if it can’t legally be used as a duplex.
I was going to suggest that it may be more valuable as a lot but given the frontage on a 6 lane busy road, I’d say your value is stronger as rentals. How nice are you fixing them up? High end fixtures? $900 seems reasonable for what you have described. If it is really nice and the peak of rental season you may even get a little more. Betsy Hughes is a local appraiser who used to do desktop appraisals for TRIG members for $150 - as long as you provide photos and she can come up with the valuation without a trip to the property. The price may be higher now with the market so crazy, but it would be worth reaching out to have an appraisal done if you are considering selling.
You must be handy!.. the estimates for rents sound correct. Do you carry flood insurance? Have you ever been a landlord? with a little effort you can easily manage on your own. Something to consider. All the best in 2021
@Elise Hazzard no flood insurance required. No, I’ve never been a landlord before and am considering running them through a property management company when it’s time.