3rd Investment Property - Mississippi

14 Replies

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $80,000
Cash invested: $18,000

This was my 3rd investment property, 9 blocks away from the University of Southern Miss (where Brett Favre played in college). This rental was Section 8 where I payed for the water/garbage. My mortgage was $539 and i charged $1,025 a month. However, due to the water usage, i was paying almost $125 a month in water expenses (Cash flow: $361) I re-negotiated the lease and lowered the Rent to $950 and got away from paying the utilities. Property was turnkey from day 1.

Current cashflow: $419

What made you interested in investing in this type of deal?

Turnkey approach, low cost, and rental rates in the area.

How did you find this deal and how did you negotiate it?

Trulia. due to the market and how fast properties were going I was okay with paying what the owners were asking for.

How did you finance this deal?

Loan - 20% down

@Paul Park great question. I don't factor in CapEx right now. I factor in for 5% vacancy and 5% repairs which may be low so that CoC may be lower. The reason i chose this area was because it was near the University and it's where i spend a lot of my time for work. I also have another secondary home in that area that i live in during the week.

I just have the one property in Hattiesburg. It was my first purchase because I was looking for a rental near a college. The price points were better in Hattiesburg for my budget as opposed to Oxford and Starkville. It’s been decent so far. I’m still pretty new to this though.

@Ulisses Barquero   @Colin Leach Hey guys! I'm in the Jackson area...I've also looked in Starkville, Oxford & Hattiesburg. My dad lives in Oxford so I originally wanted to invest there (he owns two investments there and he would also be my property manager) but I think the Oxford market is saturated with rentals. The 'big box' apartment companies have a TON of available apartments and I just thing the competition to find a renter would be difficult there. Even though we are Bulldogs at heart, we have decided to invest in Hattiesburg as well! I'm keeping my eyes open and have been in contact with a realtor there as well. I've been told that south of Hardy Street is where we want to be.... would you both agree with that? I'm not too familiar with that area - we usually just pass through on our way to the beach. I went there many times in college but I wasn't scoping for real estate then, ha!

Ulisses, this deal looks great! 

Colin, we live in Ridgeland.  Hey neighbor!  

@Alicia C. I have my property in the Avenues closer to 49 but north of Hardy. It’s been a good rental. My cash flow hasn’t been very high but that’s because I bought it too high. I was going by the thought that it was my first deal so just get something. I think the Oak Grove area is great. It has great schools. I thought being close to USM I would surely get college students but so far I haven’t had a single one. Two colleges and a hospital gives the town some diversity in rental opportunity. I think the Petal area is good as well. In the next few years I will have kids go to college maybe Starkvegas maybe Ole Miss and I hope to buy a rental house for them and then just keep it when they leave. We will see. 

Now that is a tidy looking rental..  no garage door to mess up :) .

years ago i looked at some intereting student rental units in that city..  

Basically 4 bed homes with each bed having a private bath room  a big great room and kitchen

so four students could live there have commuity cooking and TV room but private bed bath
I like those..  and have thought often of building some of those for high density high cost areas were rooms rent for 1k and up each

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you