All Forum Posts by: Grozie Thomas

Is the land in Mississippi solely your own now or is it an heirs' property, meaning land that is owned jointly by an extended family? I've seen a lot of that in Mississippi, especially among African-Americans.  It is fine for rental purposes but difficult if you ever need an exit strategy. 

As for house hacking that, of course, has to be done where you live. But if you know Mississippi well I think it is a great place to invest overall. Where is your property located? 

I like the house-hack idea as well, just start small...don't get in over your head right away, this game can get complicated.

Start with a nice duplex or triplex, stay away from full-on commercial just yet....

In addition to the advice above, do your due diligence on the operators.  It is as much - if not more - an investment in the jockey not the horse. 

Also, analyze how they arrived at their projections. For example, did they project a quick sale at today’s cap rates with aggressive rent appreciation and 2021 occupancy levels built in? Or, did they add .5-1 point to the cap rate and project more conservative rent appreciation and occupancy? 

Welcome to BP!

Hi Grozie, my advice (if you want to be an active investor) is to start with a residential multifamily property (2-4 units) which you can househack and use to learn the ropes. Starting with a commercial multifamily (5+ units) is not impossible but does come with more risk if you don't know what you are doing and requires of course more funds. You can also of course invest passively in a multifamily syndication if you have plenty of funds to invest but not as much time to run properties.