All Forum Posts by: Susan Maneck

Hi Lakeshia, 

Didn't I have you as a student at Jackson State a couple of years ago? I taught History of Civilization. You're right about Real Estate being a good opportunity here. I now own eight houses here in South Jackson. 

I'd be looking for properties either in Canton or NE Jackson. or maybe Ridgeland. Real Estate in Madison is pretty pricey. My properties are all in South Jackson but that's because I live there. I hope you know Mississippi well enough to spot the foundation problems that are endemic here. I would recommend Sherry Azordegan as a real estate lady, especially if you intend to buy in Madison County. She's really good. Her father was a brain surgeon(seriously) who bought real estate in Madison County when there was basically nothing up there. She became the real estate tycoon, her brother became the brain surgeon. She doesn't like to do HUD or Fannie Mae anymore so you may want to use someone else for those.

I didn't call my own strategy BRRRR because I'm not really refinancing the property. I buy it either using cash or proceeds from financing a different property entirely.

 Sell your house in Oakland. You can buy ten of them here for the same amount! 

The reason I mentioned Wells Fargo by name is that most lenders won't give HELOCs to rental properties, but Wells Fargo does. up to 70% of their appraisals (which tend to run on the low size.) They have teaser rates for the first year, but if pay off the credit line you can get the teaser rate back. I play musical chairs with my HELOCs much the way you might with credit card balance transfers. This way, I'm usually able to keep my interest rates down below 3% and HELOCs don't have the same closing costs. 

There are an awful lot of VA foreclosed homes on the Gulf Coast, I notice. That might be a good place to get started. I live in Jackson myself and started buying houses when I found that my home which was purchased from HUD nearly ten years earlier was now under water. I could either moan and groan over my loss or take advantage of the situation by buying up the neighborhood. That was in 2012. I now own eight house altogether (including my residence), five of them on the same street and my rental income exceeds my salary. My strategy is to pay cash for a house usually in the 30-35K range, rehab it, rent it, and then after a year get a HELOC from Wells Fargo, take that money and go buy another house.

I've bought one house from a wholesaler but sometimes this can be dubious business. I would suggest you look for foreclosures, HUD houses, FannieMae, FreddieMac, VA homes. You can find them at the following websites:

https://www.hudhomestore.com/Home/Index.aspx

https://www.homepath.com/

https://www.homesteps.com/

http://listings.vrmco.com/

Hi Nathaniel,

I live in Jackson, Mississippi as well. I own eight SFR in south Jackson. My son has caught the bug too, but he is doing most of his investing on the North side.

warmest, Susan

On the one hand I don't think the tenant is asking for something she isn't legally entitled to anyhow, but her asking you to put it in writing would make me nervous as well. Sounds like she might be litigious. 

I'd start out with something right there in Southaven where you know the real estate market.