diff --git a/azurerm/resource_arm_route.go b/azurerm/resource_arm_route.go
index 818a2f6075d1..3a53f0c2ff37 100644
--- a/azurerm/resource_arm_route.go
+++ b/azurerm/resource_arm_route.go
@@ -39,8 +39,9 @@ func resourceArmRoute() *schema.Resource {
 			},
 
 			"address_prefix": {
-				Type:     schema.TypeString,
-				Required: true,
+				Type:         schema.TypeString,
+				Required:     true,
+				ValidateFunc: validation.NoZeroValues,
 			},
 
 			"next_hop_type": {
@@ -57,9 +58,9 @@ func resourceArmRoute() *schema.Resource {
 			},
 
 			"next_hop_in_ip_address": {
-				Type:     schema.TypeString,
-				Optional: true,
-				Computed: true,
+				Type:         schema.TypeString,
+				Optional:     true,
+				ValidateFunc: validation.NoZeroValues,
 			},
 		},
 	}
@@ -140,10 +141,7 @@ func resourceArmRouteRead(d *schema.ResourceData, meta interface{}) error {
 	if props := resp.RoutePropertiesFormat; props != nil {
 		d.Set("address_prefix", props.AddressPrefix)
 		d.Set("next_hop_type", string(props.NextHopType))
-
-		if ip := props.NextHopIPAddress; ip != nil {
-			d.Set("next_hop_in_ip_address", props.NextHopIPAddress)
-		}
+		d.Set("next_hop_in_ip_address", props.NextHopIPAddress)
 	}
 
 	return nil
diff --git a/azurerm/resource_arm_route_table.go b/azurerm/resource_arm_route_table.go
index 6db00ff3719c..e6dceae3013e 100644
--- a/azurerm/resource_arm_route_table.go
+++ b/azurerm/resource_arm_route_table.go
@@ -71,7 +71,6 @@ func resourceArmRouteTable() *schema.Resource {
 						"next_hop_in_ip_address": {
 							Type:         schema.TypeString,
 							Optional:     true,
-							Computed:     true,
 							ValidateFunc: validation.NoZeroValues,
 						},
 					},
diff --git a/azurerm/resource_arm_route_table_test.go b/azurerm/resource_arm_route_table_test.go
index 5f5de26899de..b1848f4d09c6 100644
--- a/azurerm/resource_arm_route_table_test.go
+++ b/azurerm/resource_arm_route_table_test.go
@@ -70,6 +70,14 @@ func TestAccAzureRMRouteTable_update(t *testing.T) {
 					resource.TestCheckResourceAttr(resourceName, "route.#", "0"),
 				),
 			},
+			{
+				Config: testAccAzureRMRouteTable_basicAppliance(ri, testLocation()),
+				Check: resource.ComposeTestCheckFunc(
+					testCheckAzureRMRouteTableExists("azurerm_route_table.test"),
+					resource.TestCheckResourceAttr(resourceName, "disable_bgp_route_propagation", "false"),
+					resource.TestCheckResourceAttr(resourceName, "route.#", "1"),
+				),
+			},
 			{
 				Config: testAccAzureRMRouteTable_complete(ri, testLocation()),
 				Check: resource.ComposeTestCheckFunc(
@@ -367,6 +375,28 @@ resource "azurerm_route_table" "test" {
 `, rInt, location, rInt)
 }
 
+func testAccAzureRMRouteTable_basicAppliance(rInt int, location string) string {
+	return fmt.Sprintf(`
+resource "azurerm_resource_group" "test" {
+    name     = "acctestRG-%d"
+    location = "%s"
+}
+
+resource "azurerm_route_table" "test" {
+    name                = "acctestrt%d"
+    location            = "${azurerm_resource_group.test.location}"
+    resource_group_name = "${azurerm_resource_group.test.name}"
+
+    route {
+        name                   = "route1"
+        address_prefix         = "10.1.0.0/16"
+        next_hop_type          = "VirtualAppliance"
+        next_hop_in_ip_address = "192.168.0.1"
+    }
+}
+`, rInt, location, rInt)
+}
+
 func testAccAzureRMRouteTable_complete(rInt int, location string) string {
 	return fmt.Sprintf(`
 resource "azurerm_resource_group" "test" {
diff --git a/azurerm/resource_arm_route_test.go b/azurerm/resource_arm_route_test.go
index ae9340095f2c..472fd6e7f646 100644
--- a/azurerm/resource_arm_route_test.go
+++ b/azurerm/resource_arm_route_test.go
@@ -35,6 +35,43 @@ func TestAccAzureRMRoute_basic(t *testing.T) {
 	})
 }
 
+func TestAccAzureRMRoute_update(t *testing.T) {
+	resourceName := "azurerm_route.test"
+	ri := acctest.RandInt()
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testCheckAzureRMRouteDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccAzureRMRoute_basic(ri, testLocation()),
+				Check: resource.ComposeTestCheckFunc(
+					testCheckAzureRMRouteExists(resourceName),
+					resource.TestCheckResourceAttr(resourceName, "next_hop_type", "VnetLocal"),
+					resource.TestCheckResourceAttr(resourceName, "next_hop_in_ip_address", ""),
+				),
+			},
+			{
+				Config: testAccAzureRMRoute_basicAppliance(ri, testLocation()),
+				Check: resource.ComposeTestCheckFunc(
+					testCheckAzureRMRouteExists(resourceName),
+					resource.TestCheckResourceAttr(resourceName, "next_hop_type", "VirtualAppliance"),
+					resource.TestCheckResourceAttr(resourceName, "next_hop_in_ip_address", "192.168.0.1"),
+				),
+			},
+			{
+				Config: testAccAzureRMRoute_basic(ri, testLocation()),
+				Check: resource.ComposeTestCheckFunc(
+					testCheckAzureRMRouteExists(resourceName),
+					resource.TestCheckResourceAttr(resourceName, "next_hop_type", "VnetLocal"),
+					resource.TestCheckResourceAttr(resourceName, "next_hop_in_ip_address", ""),
+				),
+			},
+		},
+	})
+}
+
 func TestAccAzureRMRoute_disappears(t *testing.T) {
 	ri := acctest.RandInt()
 	config := testAccAzureRMRoute_basic(ri, testLocation())
@@ -197,6 +234,31 @@ resource "azurerm_route" "test" {
 `, rInt, location, rInt, rInt)
 }
 
+func testAccAzureRMRoute_basicAppliance(rInt int, location string) string {
+	return fmt.Sprintf(`
+resource "azurerm_resource_group" "test" {
+    name     = "acctestRG-%d"
+    location = "%s"
+}
+
+resource "azurerm_route_table" "test" {
+    name                = "acctestrt%d"
+    location            = "${azurerm_resource_group.test.location}"
+    resource_group_name = "${azurerm_resource_group.test.name}"
+}
+
+resource "azurerm_route" "test" {
+    name                = "acctestroute%d"
+    resource_group_name = "${azurerm_resource_group.test.name}"
+    route_table_name    = "${azurerm_route_table.test.name}"
+
+    address_prefix         = "10.1.0.0/16"
+    next_hop_type          = "VirtualAppliance"
+    next_hop_in_ip_address = "192.168.0.1"
+}
+`, rInt, location, rInt, rInt)
+}
+
 func testAccAzureRMRoute_multipleRoutes(rInt int, location string) string {
 	return fmt.Sprintf(`
 resource "azurerm_resource_group" "test" {