All Forum Posts by: Susan Maneck

I buy houses mostly in South Jackson, and yes those are older homes. I figure if a house hasn't moved in 40 years it probably won't. In any case, better a 30K house with foundation problems than one that costs 300K. Stay away from those fancy houses near lakes. 

Hi Ricky, 

Whereabouts in Mississippi are you investing? 

warmest, Susan 

Hi Ricky, 

Where in Mississippi is this house an how big is it? Right now in Jackson $650 will get you 2 bedroom 1 bath in a declining neighborhood. I wonder if you aren't undervaluing it? Definitely look before you buy. Remember, yazoo clay means foundation problems. That is a headache you don't want. 

I'm a Californian transplanted to Mississippi, btw. I teach at JSU. 

warmest, Susan 

Congratulations! I used to live in Rome, Georgia and thought the houses there were nicely priced. I would have bought one but I was living at Berry College and paying rent of $275 a month taken out of my paycheck before taxes. I wasn't thinking in terms of investment properties at the time. 

I should say local banks have to lend to an borrower who is otherwise qualified as long as they will be owner occupied. 

Local banks have to lend money for an owner-occupied SFR no matter how cheap it is by federal law, otherwise they are red-lining. But the same doesn't hold of rental properties. Any chance you could live in it for a time?

I can't speak for your part of Mississippi, but Jackson has a huge vacancy rate yet I never have any problems filling my SFRs. In fact, I usually have someone waiting before the last tenant moves out. What I notice is that houses become vacant because owners don't have the resources to fix them up and make them liveable, not because there is any lack of tenants. You can't be as picky about your tenants as most folks on BP are. The reason these people are not buying is because their credit scores are really awful. I don't have a single tenant who doesn't pay me their rent in cash because most don't have bank accounts. 

The after repair value does not seem that high in comparison to your purchase price, but the rental value seems good. Any chance you can do a cash purchase for maybe 30-35K? If so you can get it refinanced a year later with a Wells Fargo HELOC. I've found these are much cheaper for low end properties than a regular mortgage.

Actually, you can buy houses for a lot less in Jackson. But you really have to live here to make it work. 

You realize you don't need a LLC period? My mother has one because she holds real estate in her self-directed IRA which does require an LLC. I don't think any state requires that an LLC be in the state in which you hold property, but state laws vary as to whether then you have to register as a "foreign" LLC. As near as I can tell you don't have to in Mississippi, but check the state laws where you intend to do business.