Second Rental (Large)

Real Estate Deal Analysis & Advice
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Second Rental (Large)

Roberto Sembiante
Rental Property Investor 路 Henderson, NV 路 Member since 2019 路 58 posts 路 72 votes

Investment Info:

Single-family residence buy & hold investment in Norfolk.

Purchase price: $307,500
Cash invested: $3,695

6 Bedroom, 5 Bathroom Renovated Single Family Home.

What made you interested in investing in this type of deal?

I wanted to experiment in the college rental scene in Norfolk near Old Dominion University. I figured since students like to live in a house with all of their friends this would suffice well.

How did you find this deal and how did you negotiate it?

I found it driving and saw that it was on the market for 120 days, so I negotiated it from 320,000 to 307,500

How did you finance this deal?

VA Loan 0% Down

Lessons learned? Challenges?

No one found out that there was no CO for the property. I left for deployment a couple weeks after closing and found out when trying to hand it over to the property management agency. That left me with the property and no renters for my 6 month deployment. I learned all of the ins and outs when it comes to the City of Norfolk and getting a CO.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Sherry Reid of TowneBank. The best lender you can ever ask for, highly recommend!

4Reply
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Most Popular Reply

Douglas Mcqueen
Rental Property Investor 路 Virginia Beach, VA (Virginia Beach) 路 Member since 2019 路 173 posts 路 129 votes
5y

Patti is great!  definitely top of her game in Hampton Roads!

3Reply
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  • Luke Trovinger
    Realtor 路 Denver, CO 路 Member since 2020 路 259 posts 路 153 votes
    5y

    Congratulations on the deal @Roberto Sembiante! Will you be renting out by the room or having a group of friends on a single lease?

    2Reply
  • Cory WallacePro Member
    Rental Property Investor 路 Norfolk, VA 路 Member since 2020 路 53 posts 路 38 votes
    5y

    @Roberto Sembiante Congrats!!!

    1Reply
  • Cory WallacePro Member
    Rental Property Investor 路 Norfolk, VA 路 Member since 2020 路 53 posts 路 38 votes
    5y

    @Roberto Sembiante Congrats!!!

    2Reply
  • Douglas Mcqueen
    Rental Property Investor 路 Virginia Beach, VA (Virginia Beach) 路 Member since 2019 路 173 posts 路 129 votes
    5y

    Awesome congrats!  Would love to hear more about the CO process with Norfolk, I have had mixed interactions with them it always seems hot or miss

    1Reply
  • Roberto Sembiante
    OP
    Rental Property Investor 路 Henderson, NV 路 Member since 2019 路 58 posts 路 72 votes
    5y
    Originally posted by @Douglas Mcqueen:

    Awesome congrats!  Would love to hear more about the CO process with Norfolk, I have had mixed interactions with them it always seems hot or miss

    It went well for me, just needed to figure out all of the positions of people in the city and who to call for what. What also made it easy for me was having them tell me exactly what they needed and solving the problems that way.

    1Reply
  • Roberto Sembiante
    OP
    Rental Property Investor 路 Henderson, NV 路 Member since 2019 路 58 posts 路 72 votes
    5y
    Originally posted by @Luke Trovinger:

    Congratulations on the deal @Roberto Sembiante! Will you be renting out by the room or having a group of friends on a single lease?

    Originally the plan was to do room by room, however finding a management company that wanted to take that on was on the cards for me. Since managing the property is not my passion I give the decisions on how the property should be rented out to the people who know what they are doing. In this case @Patti Robertson from PMI Virginia has been a massive help.

    2Reply
  • Douglas Mcqueen
    Rental Property Investor 路 Virginia Beach, VA (Virginia Beach) 路 Member since 2019 路 173 posts 路 129 votes
    5y

    Patti is great!  definitely top of her game in Hampton Roads!

    3Reply
  • Santiago MarquezPro Member
    Rental Property Investor 路 Bronx, NY 路 Member since 2017 路 152 posts 路 65 votes
    5y

    Great work Rob 馃槑馃憤 You def hit this one out the box! Helped the community, students at the nearby schools & your portfolio too. 

    1Reply
  • Dmitriy Fomichenko
    Solo 401k Expert 路 Anaheim Hills, CA 路 Member since 2012 路 18k+ posts 路 6k+ votes
    5y

    Congratulations @Roberto Sembiante !

    1Reply
  • Patti RobertsonBusiness Member
    Property Manager 路 Virginia Beach, VA 路 Member since 2016 路 2k+ posts 路 2k+ votes
    5y

    Update on this one. We couldn't room rent, because that's illegal, and IMO is essentially one step up from homeless shelter and the house would end up destroyed. We accepted a group home tenant today at a rent of $2900/month, which is at least $600 more than we would have gotten in a regular market in this neighborhood with a traditional tenant. We tried to get Oxford House, but they wouldn't approve the location. The group we ended up with is very established with 28 homes operating in VA. They staff the home with 2 people at a time around the clock, and they handle minor repairs. This is almost meeting the 1% rule which is near impossible with a $300k house in our market. Whoot Whoot!







    757-472-2547
    3Reply
  • Douglas Mcqueen
    Rental Property Investor 路 Virginia Beach, VA (Virginia Beach) 路 Member since 2019 路 173 posts 路 129 votes
    5y

    Awesome job @Patti Robertson and @Roberto Sembiante

    1Reply
  • William Moya
    Property Manager 路 Land O lakes, FL 路 Member since 2016 路 72 posts 路 61 votes
    5y

    @Roberto Sembiante congratulations!

    1Reply
  • Roberto Sembiante
    OP
    Rental Property Investor 路 Henderson, NV 路 Member since 2019 路 58 posts 路 72 votes
    5y
    Originally posted by @Dmitriy Fomichenko:

    Congratulations @Roberto Sembiante !

    Thank you!

    0Reply
  • Craig Herrmann
    New to Real Estate 路 Gloucester, MA 路 Member since 2019 路 20 posts 路 5 votes
    4y

    @Patti Robertson, quick question. What was it about the location that the Oxford House didn't approve?

    0Reply
  • Santiago MarquezPro Member
    Rental Property Investor 路 Bronx, NY 路 Member since 2017 路 152 posts 路 65 votes
    4y

    Great work Rob 馃槑馃憤 You def hit this one out the box! Helped the community, students at the nearby schools & your portfolio too. 

    0Reply
  • Patti RobertsonBusiness Member
    Property Manager 路 Virginia Beach, VA 路 Member since 2016 路 2k+ posts 路 2k+ votes
    4y

    @Craig Herrmann Oxford house is picky about location. They want locations that are not close to areas that are known for easy access to drugs.  They prefer A/B neighborhoods, and because they pay a higher rent they can usually find them.  They also want large kitchens and living areas in addition to multiple full baths.   They also have to be in the market for a location at the time you have something available.  They would need to be moving another Oxford house.  They don't open new ones very often.  

    757-472-2547
    0Reply
  • Craig Herrmann
    New to Real Estate 路 Gloucester, MA 路 Member since 2019 路 20 posts 路 5 votes
    4y

    @Patti Robertson, thanks for your reply. I am in direct contact with a Northeast regional manager from NJ and they want to expand their charters in New England. I plan to document the process and will keep the BP community informed about all the amazing things Oxford House is doing.

    1Reply
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