Buying out of state tips

4 Replies

Has anybody purchased in Jackson, Mississippi?

I’m looking to buy my first rental, which would also be out of state for me.

Interested in any information or tips on Jackson as well as Mississippi landlord laws.

Thank you in advance!

I invest in Jackson, Mississippi but I bought those properties when I lived there. I have since relocated to California and turned my properties over to a manager who is also my real estate broker. Mississippi landlord laws are pretty straightforward and landlord friendly but judges have a lot of discretion. Avoid the 39204 and 39209 zip codes. Those are war zones. The most important things that need to be checked when you buy property is for foundation problems and roof leaks. Foundation problems are endemic in Mississippi because so much is built on yazoo clay. The biggest problem with roof leaks is not so much the cost of replacing the roof but getting rid of the mold that results. The best deals are to be found at the HUD, Fannie Mae and Freddie Mac websites if you don't live here. Avoid wholesalers. I can send you my brokers contact information if you send me a private message.

@Susan Maneck

Judges discretion has actually been removed and as you mentioned MS is a landlord friendly state.

I’d argue it’s one of the friendliest landlord states in the country.

You can evict in 3 days via text message in MS.

Jackson is so overrated in my opinion. I’m not sure who sold the dream of Jackson being some golden pot of rentals to out of state investors but there’s always a ton of competition there for no apparent reason and most get sold into investments in terrible areas.

I can understand why you would say don’t buy from wholesalers as there can be some shady characters, but I’ve seen shady brokers as well. If you’re buying from a broker, you aren’t getting the best deal you could get. But hey, if the numbers work for you then by all means, pay that broker. I just know I make a lot more money sourcing my own deals.


You can evict in 3 days via text message in MS.

In theory, yes. But not in practice. According to state law you can evict them yourself if you can do so without creating disorder, something impossible if the tenant resists. 

Jackson is so overrated in my opinion. I’m not sure who sold the dream of Jackson being some golden pot of rentals to out of state investors but there’s always a ton of competition there for no apparent reason and most get sold into investments in terrible area, 

I don't really advise it for out-of-state investors. I was living there when I started to invest and I bought in my own neighborhood.  I also have a broker who understands what I want and her husband can do estimates of rehab costs. What I don't advise people to use are these so-called 'turn-key' companies. 

I can understand why you would say don’t buy from wholesalers as there can be some shady characters, but I’ve seen shady brokers as well. If you’re buying from a broker, you aren’t getting the best deal you could get.

I mostly buy HUD and Fannie Mae houses which requires a broker. Most of the time wholesalers don't have better deals. The problem with wholesalers is that the entire operation is of dubious legality here. 

But hey, if the numbers work for you then by all means, pay that broker. I just know I make a lot more money sourcing my own deal

What needs to be kept in mind in working with Mississippi real estate is that the 'numbers' almost always work in terms of the rents but you can't count on properties appreciating. 

 

@Susan Maneck

Nothing illegal about wholesaling. I wholesale properties all the time that don’t fit our buy box. What doesn’t fit mine often fits others and if it can help a seller solve a bigger issue then it’s never an issue.

You mentioned theory, but in reality we have evicted this way. It’s a notice of evict via text. However, our focus is always being painfully meticulous about who we put in our properties and we rarely ever face that difficulty.

It does help that my wife is an attorney who can accomplish things faster than most but the only eviction I’ve had to do where the tenant resisted was removed by sheriffs deputy within two weeks of being sent notice of eviction.

As far as appreciation goes, I prefer the slow to low appreciation. Way less volatile in a correction. Counting on high levels of appreciation is simply speculating.