The boat was located about 1,000 yards off of the coast of Willoughby Spit. When crews arrived, they found two men in the water wearing children's life vests.
Crews were able to pull them from the water. Hampton fire and rescue, as well as Coast Guard team members, assisted in the rescue.
The two men were taken to the Willoughby Marina. Officials say the older of the two men was taken to the hospital for observation.
Police say the boat was recently purchased by the men.
The Coast Guard will handle recovery of the vessel, and will continue to investigate.
Anthony Mozell was one of the boaters.
He says he and his fishing partner had trouble with the boat several times Friday morning and on their third trip out, it began taking on water.
"We dumped the coolers and started trying to get it out with the coolers. It was coming in as fast as we could get it out," Mozell said. "After a while, the boat flipped over on top of us. We were able to get out from under it and started drifting around."
Mozell says he had to rescue his fishing partner.
"He couldn’t swim at all. So when I saw him, I grabbed him, held up and kept him up. I had his head up on my chest, so when I saw the boat, I swam back over to it and got on top of it," Mozell explained.