Natalie, Don or Leon (Virginia state law question) - Posted by Cappy - VA

Posted by Natalie-VA on July 14, 2005 at 08:37:50:

Cappy,

I previously posted, but my post went into hiding I guess. I’ll try again…

I’m not aware of any rent restrictions, but you definitely want to check with the locality where the property is located.

If the property is located in Hampton Roads, let me know the specifics. I have access to the MLS and would be happy to email you a rental CMA to give you some more data. No charge, no advertising…just trying to help.

Also, if that’s in the Hampton Roads area, those rents are on the low side. I would be concerned about the quality of tenant and neighborhood you might be in.

—Natalie

Natalie, Don or Leon (Virginia state law question) - Posted by Cappy - VA

Posted by Cappy - VA on July 13, 2005 at 17:25:22:

Hello!

Just a quick question about VA real estate law. Is there some sort of rent restrictions or what have you in Virginia? I found a 4 unit that I figured could fetch about $600 a month per apartment and I found out that I was almost right. Two units are currently renting for $595 but the other two are renting for $395 and $495. Would it be as easy as buying the property based on the sellers figures, increasing the rent on the cheaper apartments once the leases are up and increase the cash flow, or are there some sort of rent restrictions in VA that I dont know about that would prevent me from doing so? Thanks in advance!

Re: Natalie, Don or Leon (Virginia law question) - Posted by Don (VA)

Posted by Don (VA) on July 14, 2005 at 08:42:51:

No restrictions (at least for a 4-unit property) that I’m aware of. (I’m most familiar with single family homes.) However, restrictions sometimes are imposed not just state by state, but also city by city. For instance, Richmond might have some restrictions that you wouldn’t find in Alexandria. For that reason, a quick chat with a real estate lawyer before you buy the property would be prudent.

Just make sure you do your due dilligence on income and expenses. (Your statement “…as easy as buying the property based on the sellers figures…” concerned me. Seller’s figures, as you know, are only the starting point.) Verify both the income and the expenses. To really verify both, ask the seller for the pages of his most recent tax return containing those income and expense figures. No one overstates income or understates expenses to the IRS.

Hope that helps.