In this podcast episode, host Paul Neal talks to Sandbridge Beach area Realtor Pat Barton about real estate investment opportunities in the oceanfront area. Pat explains that the true investor is primarily looking at oceanfront properties where they can achieve a high return on investment. Most buyers are families who use the property for vacations and short-term rentals to offset the costs of ownership.
Paul inquires whether it’s possible to break even or just reduce the cost of real estate investment in this scenario. Pat explains that while there are situations that present a breakeven scenario or potentially positive cash flow, most of these cases revolve around cash purchases. Investors are likely to be spending anywhere from two to three million dollars for a single-family home.
The conversation then shifts to the properties being built specifically for short-term rentals. Pat mentions seven properties under construction on the oceanfront road, which are all expected to generate significant rental income. Regulations have come into place to control aspects like parking spaces for short-term rental properties.
One unique aspect of the area discussed is the ability to make a property a short-term rental without a special use permit, which only applies to the Sandbridge area. This drives up the value of properties in the region.
The podcast also touches on the evolution of the area, with old cottages being replaced by large new homes. Pat highlights that the area has been discovered and now generates a lot of revenue for the city. A special tax district was created in the late nineties to self-finance a sand replenishment project, and as property values have increased, the tax rate has actually been reduced.
In conclusion, the podcast highlights the appeal of Sandbridge as a real estate investment opportunity, with its proximity to Virginia Beach’s activities while still offering a more private and secluded beach experience.
To Connect with Pat Barton:
Facebook: https://www.facebook.com/patbarton.sandbridgehouses
LinkedIn: https://www.linkedIn.com/in/bartonpat/
Web: https://sandbridgehouses.com
Meet the Host: Paul Neal is the founder and Principal Funding Strategist at Vantage Point Commercial Capital, a firm that focuses on helping entrepreneurs, businesses, and real estate investors win by funding their growth and dreams in nontraditional ways.
Paul’s unique perspective has been honed over 30 years as an entrepreneur, financial strategist, professional speaker, and executive coach. He took the road less traveled choosing to leave engineering right out of college to become a serial entrepreneur. From great early successes in the 90s and 2000s, to completely losing his primary business in the Great Recession of 2008, to bouncing back and just recently selling another business for a healthy 7-figure sum…he’s experienced it all. Paul offers a wealth of experience and passion to the entrepreneurial community in an engaging, upbeat, encouraging, and witty way.
Connect with Paul:
Visit his website: https://paulneal.net
Connect with him on LinkedIn: https://www.linkedin.com/in/paul-neal-47b8478