All Forum Posts by: Colin Leach

If you owner occupy, you are able to claim homestead exemption that will lower your tax bill. Most counties have the taxes listed on their tax assessors website. Some counties will actually show you the total tax bill, the homestead exemption amount and the total paid by the owner. Some of them will just show you tax bill paid by the owner, but generally you will see a code that will tell you whether it has an exemption or not. People will have homestead exemptions, over 65 exemptions and disability exemptions. All of those affect the bill. The O65 makes it almost nothing and the disability makes it nothing.

If they don't list the non-exempted tax bill on the site, pick up the phone and call them. Ask them what the tax bill will be without an exemption. They can tell you.

I know from experience that this can hurt your cash flow.

Welcome and hello from Mississippi too. Where are you looking at deals?

Welcome to BP. Nice to see some fellow Mississippians on here. 

Listen to the podcasts and read posts and articles so you are familiar. Take in the mistakes and advice others offer and take action. You will never finish a race if you don’t take the first step. 

I think sticking close to campus as @Susan Maneck mentioned is great. I also know there are some duplexes out Hwy 25 that show up. I don't know the area out there. I do know an agent up there that could help you look around and give ideas.

Thanks for all the replies. As I mentioned I was looking for buy and holds and still inexperienced at that. I thought a flip would help jump start that. I will definitely do some more research on actual costs to make sure I include all the correct holding costs. Sometimes still being new I find it hard to recognize a good deal.

I read a lot of posts and listen to a lot of sucessful people talk about finding money after you find the deal. I talk with people around me and no one seems to bite on wanting to get in. I assume I am talking to the wrong people. There's a property I want to move on and flip is listed at 75k. To make it work, I would need to get it for less, but I don't want to offer because I don't have the financing behind it. The property needs 25k of work (cosmetic and new roof). All fixed up it should sell for 115k. My agent thinks we might could get down to 60k. Those numbers would be 60k plus 25k for rehab for a total of 85k with another 5k for other expenses. 90k total all in, sell it and make 25k. I am more into buy and hold, but I want to flip one to get cash to get another buy and hold. I want to make the offer, but without the money behind it, I am stalled out. I just need to ask more people? Talk more? Network more?

Welcome Dustin. Look around and ask questions. I would be curious about the NAS over there. Are there a lot of rentals around the air station? 

I was working with a local bank and they were offering a 20 year am with 15% down. That's why I was looking at 20 years. I know my percentages are lower than the standard, and that may be a mistake on my part. It may be just that I need to look for better deals.

I have read posts and listened to the podcasts and they discuss the 1% rule which I understand is a rule of thumb. I see this small duplex (1 bed/1 bath each side) listed for 70k. It is rented out right now at $450 per side for $900 a month. That is above the 1% rule so it looks like a good deal until I run the numbers. Expenses come out to $950/month with is -$50 cash flow. I believe the rents could be raised to $600 which would put me at $160/month cash flow. That sounds better, but I am unsure on the rents. A property manager in my area said it could support $600 a month. I am not so sure, but then again I am still new at this. Help me better understand the 1% rule. Do I just look at rents and purchase price and if it's 1% that just tells me to analyze further? Do I just use it as a criteria to look closer or skip it?

Property tax: $1227

Loan info: 6%, 20 year am, 15% down - $400/month

Vacancy 5%: $45

Repairs 5%: $45

CapEx 8%: $72

Mgmt Fees 10%: $90

Insurance: $200

And if you need a PM, I recommend Misty Corts.

I have a property in Hattiesburg and she manages it. She has done right by me.