All Forum Posts by: Ali Croft

@Tom Hacku, @Darius Ogloza Thank you so much for your thoughtful responses! You both had me challenging my own biases and assumptions about these options.

After reviewing the numbers some more, and considering our own finances and the current economic climate, we decided to proceed with the "cheaper" deal, Property 1. We are both happy and comfortable living in the neighborhood so while it wasn't our top choice it's still not a huge sacrifice! 

We also discovered there is likely to be re-development in the commercial corridor that I've been worried about, so that assuaged those concerns quite a bit. Info on that if any other locals are interested: 
"On July 22nd, 2019 City Council passed the ordinance to amend the zoning map to rezone the first phase of implementing the VUU/Chamberlayne Neighborhood Plan: rezoning parcels along sections Lombardy Street and Chamberlayne Avenue, as well as Overbrook and Graham Roads in order to create the neighborhood center envisioned by the plan. A summary of the rezoning can be found here. Materials related to Ordinance 2019-174, which remapped those parcels can be found here."
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Hi all. I've been reading your posts for awhile now, so first thanks for being so open and willing to share your knowledge and advice!

I am looking for my first deal, purchasing a duplex to owner-occupy in Richmond, VA. I lived there in the past so I know the neighborhoods fairly well. An agent just found me two off-market deals, both of which I like, but am torn between.

FYI - I currently own 0 properties, and I have about $90,000 in cash to play with (6-month emergency fund already taken care of outside of that.) I'm very new to the investor game, so my goal with the first purchase is:

• A place that my partner and I would want to live in for 1-3+ years
• Cap Rate of 3-4% minimum
• Cash flow as close to $100/a door as possible
• Have cash leftover to (A) start the slush fund for this property, ~$5-10k and (B) less vital: start building the pot for Property #2 within the next 2 years 
  
• Note: I am semi risk-averse, not looking to over leverage right out the gate

I'm looking for this first purchase to be a base hit, not a home run, as @Brandon Turner says.

Property 1:

• Duplex
• Purchase Price $275,000
• Rental Income: $1000/unit
• Location: North Side of town (Northern Barton Heights), up and coming. Maybe a Class C moving into a B. But this property is close to a commercial corridor, so not *ideal*. There is a Burger King, McDonalds, and a motel nearby. But-- SFH are going for $350,000 on the block.
• Fairly turnkey but not looking super modern/stylish currently

Property 2:

• Duplex
• Purchase Price $380,000
• Rental Income: $1400/unit
• Location: East End (Chimborazo), maybe a Class B moving into A. Beautiful neighborhood, we love living in this area.
  Renovation currently being done to upgrade to modern styling, it looks great so far.
  Definitely turnkey
  

For both, I looking of doing a 30-year fixed conventional, 15% down.

Property 1 feels more "responsible" in that it will leave more cash in our pockets right now -- but, the neighborhood is less desirable and the commercial corridor likely won't be improving for awhile. Property 2 feels less responsible in that it's more expensive -- but it is more secure neighborhood-wise, both short- and long-term.

What would you do?

Thank you SO much, @Cameron Rockwell!  

@Michael Acevedo Here are some suggestions I've found from locals. I don't personally have any experience with these, but thought I would share what I've found!:

• http://mccaskeyins.com/
• Allstate
• Progressive
• Jonathan Lohman @ http://www.lohman-companies.com/
• Neptune Flood

Thanks so much for keeping me in mind, @Cameron Rockwell! 

So sorry for this super delayed response, but thank you all for your thoughtful replies. 

@Account Closed

@Sean Rooks@Sean Rooks

@Kristopher Kyzar

(BP isn't letting me tag everyone else?!)

I am still considering whether or not the additional headache of Norfolk's water situation is something I want to take on. My plan has migrated to being a longer term buy-and-hold strategy (my original post noted 5 years.)

For anyone else interested in this topic, this article neatly summarizes some of my broader concerns, including the idea that this coastal city should possibly be focusing on a retreat plan, not a resilience plan:

https://www.washingtonpost.com/magazine/2020/04/13/after-decades-waterfront-living-climate-change-is-forcing-communities-plan-their-retreat-coasts/

Congrats, Cameron! Would you mind sharing the investor-friendly agent you ended up working with? I'm looking into moving/investing in the Hampton Roads area, any leads are so greatly appreciated! 

I am looking into purchasing a duplex in Norfolk, VA as a first step in real estate investing, with the plan to owner-occupy for 2-3 years. Norfolk because I like the city and it also seems that properties are still affordable.

The flooding, however, concerns me. Both as it occurs regularly right now, and also the potential larger effects of climate change, 5-10 years+ down the line.

Does anyone have any recommendations, Norfolk-specific or in general flood-prone/coastal areas, for what all I should be considering prior to purchasing in such an area for investment purposes? Here are the things/questions that come to mind so far:

Flood maps - I've looked up properties on them, but how do I learn how to better read these maps to know how to catch red flags? What maps should I look at specifically (if not all of them)? FEMA, city, Floodsmart? I am overwhelmed by not only not knowing how to intelligently interpret the maps, but also the variety of sources to find the maps.

Flood insurance - Would you say this is a must, no matter what the flood maps say? I plan to look into the costs for the purposes of calculating CapEx, but I'm wondering how I determine if it's necessary or not.

Flood history for a specific property - I’ve loosely heard that once a claim is made on a property, it is rendered uninsurable by flood insurance ever again. Is this true!? Is there a resource to find reliable info on a property’s flooding history?

Say a property has had no flooding issues in the past….how do you feel about investing in an area like this, that was built on a riverbed, that is particularly vulnerable to climate change in the longer term? Is it a ridiculous idea to think about this for a buy-and-hold for a 5 year period, with the hope to exit before climate change becomes a major issue?

Where do you look for reliable information on the potential effects of climate change for specific geographic areas

What am I not even yet considering?

…. I know this is a lot, any advice would be GREATLY appreciated!