Second Rental (Large)

13 Replies

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!

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.

 

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.

 

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!







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