All Forum Posts by: JJ Harris

Hi BP,

How do you property managers handle renter's insurance?  Do you manage the policy and charge the tenant?  Do you just put in a clause for it and hope for the best after the first verification?  What are my options?  

I agree Eric.  I seldom found deals that work out quite as well as they would first appear. There are often setbacks and altogether misssteps. The difference between successful investors and those who don't work out, is the ability to keep going on the face of difficulty. 

FWIW, I have a 15 unit apt plex in mobile if you're looking to go that direction first.

I wish you the best in your journey. One comment about your question about growing a large portfolio without partners. As a small, local investor, I found it beneficial to build relationships with small local banks. More significantly, the bankers themselves. You'll have one of two different directions to go at the bank. Mortgage lender, which is where they may try and send you since you want to buy a house, or Commercial lender who finances buisinesses. I would certainly recommend the second route. They speak the language of cap rates, cash flows and ROIs better. They, in my experience, will send you to a competitor who can handle your buisiness of their tolerance for investment SFH is maxed out at the moment (happens sometimes from bank to bank.)

Hi Eric, good luck on your search in Gulfport, I live and invest full time in gulfport and the surrounding coastal counties and would like to add my 2cents. really inexpensive properties with amazing cash flow always come with a caveat. We have a lot of homes from Mobile to Diamondhead that are less than 70k and will probably cash flow, at least initially. In my observation, they are often past the peak of their useful life span. Homes in that category are usually trading among investors only. A home built in the 50s is going to come with above average maintenance and it's hard to continue cash flowing when your maintenance costs exceed %10 of gross. I've found lots of 3/2 built around y2k NORTH of I-10. There is good appreciation left in these homes and there is growth in that direction. The retail priced, SFH market growth south of I-10 is at a much higher price point. I've got several SFH in Orange Grove and D'Iberville and St Martin, and they aren't home runs cash flow wise, but they do have REASONABLE cash flow, are dependable homes that people WANT to live in and they are appreciating. Since ONLY investors trade multi door properties, I don't find that the same analysis applies because you will always be selling cash flow, and not the property itself. For SFH I always consider that I'll be selling to a real family, and our first rule of investing is to be aware of at least one exit strategy.

In Mississippi, I'm getting 5 yr. terms with 10 to 15 year amortization for properties with strong financials, meaning debt coverage. These loans require a personal guarantee, so my credit and Debt to income are significant factors. I'm building relationships with small local banks instead of big lenders. 3 MF deals within 18 months with similar terms. Good luck on your purchase.

Hi! Welcome to BP.. Great to see fellow Mississippians on the site.. Especially from the coast.

hi all..  South MS investor currently operating multi and SF in South MS and Mobile.  Would love to meet up.  Let me know when.... N fact, I'll get the ball rolling with this question.  Everyone ok with Jackson area? Hattiesburg? Early April?

Hello and welcome to BP from the MS GulfCoast.  

Hi Thomas,

How did the multiplex deal work out for you?  I'm assuming you put those building skills to work on the rehab?

Hi Todd,

Pretty new to BP myself, but I'm finding a lot of the discussions interesting.  If you make it down to the GPT Biloxi area, say hello.  Networking was really my motivation for interacting with BP.